Project 1 requires an original investment of $69,200. The project will yield cash flows of $20,000 per year for 5 years. Project 2 has a computed net present value of $12,900 over a three-year life. Project 1 could be sold at the end of three years for a price of $73,000.

A. Determine the net present value of Project 1 over a three-year life with residual value, assuming a minimum rate of return of 20%. If required, round to the nearest dollar.

B. Which project provides the greatest net present value?