Quail Company is considering buying a food truck that will yield net cash inflows of $$10,600$ per year for seven years. The truck costsRowan Company is considering two alternative investment projects. Each requires a $$266,000$ initial investment. Project $A$ is expected

to generate net cash flows of $$76,000$ per year over the next six years. Project $B$ is expected to generate net cash flows of $$66,000$

per year over the next seven years. Management requires an $8\%$ rate of return on its investments. $($PV of $$1,FV$ of $$1,$ PVA of $$1,$ and

FVA of $$1)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

Compute each project's net present value.

Compute each project's profitability index.

If the company can choose only one project, which should it choose, based on profitability index?

Complete this question by entering your answers in the tabs below.

Required $1$

Required $3$

Compute each project's net present value. $($Do not round intermediate calculations. Round your present value factor to $4$

decimals and your final answers to the nearest whole dollar.$)$

$$50,000$ and has an estimated $$6,700$ salvage value at the end of the seventh year. $($PV of $$1,$ FV of $$1,$ PVA of $$1,$ and FVA of $$1)($Use

appropriate factor$($s$)$ from the tables provided. Enter negative net present values, if any, as negative values. Round your present

value factor to $4$ decimals.$)$

What is the net present value of this investment assuming a required $12\%$ return?