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Project 1 requires an original investment of $85,300. The project will yield cash flows of $16,000 per year for 6 years. Project 2 has a
Project 1 requires an original investment of $85,300. The project will yield cash flows of $16,000 per year for 6 years. Project 2 has a computed net present value of $17,000 over a four-year life. Project 1 could be sold at the end of four years for a price of $63,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below.
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