Part Five APPLY THE CONCEPTS: Net present value and Present value index Ewing Engineering is looking to invest in Project A or Project B. The data surrounding each project is provided below. Ewing's cost of capital is 10%. Project A Project B This project requires an initial investment of This project requires an initial investment of $167,500. The project will have a life of 3 $137,500. The project will have a life of 5 years. Annual revenues associated with the years. Annual revenues associated with the project will be $130,000 and expenses project will be $107,000 and expenses associated with the project will be $35,000. associated with the project will be $60,000. Calculate the net present value and the present value index for each project using the present value tables provided below. Present Value of $1 (a single sum) at Compound Interest. Present Value of an Annuity of $1 at Compound Interest. Note: . Use a minus sign to indicate a negative NPV. If an amount is zero, enter "0". Enter the present value index to 2 decimals. Project A Project B Total present value of net cash flow $ 139,590 X Amount to be invested 167,500 137,500 Net present value Present value index: Project A Project B Based upon net present value, which project has the more favorable profit prospects? Based upon the present value index, which project is ranked higher? Feedback Check My Work Check My Work Next > All work saved. Email Instructor Save and Exit Submit Assignment for Grading O Ei W FA COMIT P X 85.F Sunny ~ 0 6 71) ENG 1:35 PM 9/16/20