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Please assist with the attached accounting question. Rydell Engineering is looking to invest in Project A or Project B. The data surrounding each project is
Please assist with the attached accounting question.
Rydell Engineering is looking to invest in Project A or Project B. The data surrounding each project is provided below. Rydell's cost of capital is 10%. project A This project requires an initial investment of $175,000. The project will have a life of 3 years. Annual revenues associated with the project will be $130,000 and expenses associated with the project will be $35,000. 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 "O". Enter the present value index to 2 decimals. project B This project requires an initial investment of $137,500. The project will have a life of 5 years. Annual revenues associated with the project will be $107 ,OOO and expenses associated with the project will be $60,000. Project A Total present value of net cash flow Amount to be invested Net present value Present value index: Project A Project 8 Project B 137,500 v'
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