Project A requires an original investment of $59,300. The project will yield cash flows of $17,400 per year for 4 years. Project B has a computed net present value of $3,370 over a 4-year life. Project A could be sold at the end of 4 years for a price of $15,100. Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.893 0.909 0.826 2 0.890 0.797 3 0.840 0.751 0.712 4 0.792 0.636 0.683 0.621 5 0.747 0.567 Following is a table for the present value of an annuity of $1 at compound Interest: 4 Year 69 10% 12% 1 0.943 0.909 0.893 N 1.833 1.690 1.736 2.487 3 2.673 2.402 3.037 4 3.465 3.170 5 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 Previous Next ? 1 0.943 0.909 0.893 0.797 2 0.890 0.826 3 0.840 0.751 0.712 0.636 4 0.792 0.683 S 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound Interest: Year 6% 12% 10% 0.909 1 0.943 0.893 1.690 2 1.833 1.736 2.487 3 2.673 2.402 4 3.465 3.170 3.037 5 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 Lssuming a minimum rate of return of 12%. Round your answer to two decimal places. b. Which project provides the greatest net present value? Previous Next >