Project A requires an original investment of $65,000. The project will yield cash flows of $15,000 per year for seven years. Project B has a calculated net present value of $5,500 over a five year life. Project A could be sold at the end of five years for a price of $30,000.

Below is a table for the present value of $1 at compound interest.

Year	6%	10%	12%
1	.943	.909	.893
2	.890	.826	.797
3	.840	.751	.712
4	.792	.683	.636
5	.747	.621	.567

Below is a table for the present value of an annuity of $1 at compound interest.

Year	6%	10%	12%
1	.943	.909	.893
2	1.833	1.736	1.690
3	2.673	2.487	2.402
4	3.465	3.170	3.037
5	4.212	3.791	3.605

(a) Using the proper table above determine the net present value of Project A over a five-year life with salvage value assuming a minimum rate of return of 12%. $

(b) Which project provides the greatest net present value? -Select-Project BProject AItem 2