Problem 16-19A (Algo) Using net present value and internal rate of return to evaluate investment opportunities LO 162,163 Dwight Donovan, the president of Stuart Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of three years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $120,000 and for Project B are $37,000. The annual expected cash inflows are \$47,407 for Project A and \$15,405 for Project B. Both investments are expected to provide cash flow benefits for the next three years. Stuart Enterprises' desired rate of return is 6 percent. (PV of \$1 and PVA of \$1) (Use appropriate foctor(s) from the tobles provided.) Required o. Compute the net present value of each project. Which project should be adopted based on the net present value opproach? b. Compute the approximate internal rate of retum of each project. Which one should be adopted bosed on the intemal rate of return approach