Petrioli Services is considering a project with these data projections. Using the time value of money principle and the net present value method, answer the following questions. The present value of annuity of $1 table is also provided. Projections Initial investment Project life $6,000,000 Salvage value 6 years Annual Revenue and cost Data Projected sales $4,000,000 Less: Cash operating expenses 1,600,000 Depreciation expense 1,000,000 Net operating income $1,400,000 Annual net cash tow $2,400,000 Present Value of Annuity of $1 Periods 10% 1 0.9091 11% 0.9009 12% 13% 14% 0.8929 0.8850 0.8772 15% 0.8696 2 1.7355 1.7125 1.6901 1.6681 1.6467 1.6257 3 2.4869 2.4437 2.4018 2.3612 2.3216 2.2832 4 3.1699 3.1024 3.0373 2.9745 2.9137 2.8550 5 3.7908 3.6959 3.6048 3.5172 3.4331 3.3522 6 4.3553 4.2305 4.1114 3.9975 3.8887 3.7845 7 4.8684 4.7122 4.5638 4.4226 4.2883 4.1604 8 5.3349 5.1461 4.9676 4.7988 4.6389 4.4873 9 5.7590 5.5370 5.3282 5.1317 4.9464 4.7716 10 6.1446 5.8892 5.6502 5.4262 5.2161 5.0188 11 8.5136 7.9633 7.4694 7.0248 6.6231 6.2593 Knowledge Check 02 If Petrioli's cost of capital is 12%, what is the project's net present value? $3,867,360 $4,153,200 O $10,153,200 O $9,867,360