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Project A requires an original investment of $59,000. The project will yield cash flows of $17,000 per year for 4 years. Project B has a

image text in transcribed Project A requires an original investment of $59,000. The project will yield cash flows of $17,000 per year for 4 years. Project B has a computed net present value of $3,030 over a 4-year life. Project A could be sold at the end of 4 years for a price of $16,400. Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interesti Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 S 4.212 3.791 3.605 Use the tables above. a. Determine the net present value of Project A over a 4-year life with salvage value assuming a minimum rate of return of 12 Round your answer to two decimal

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