return to evaiuate investpes Prooiem To-19 sing net present vaiue ana internai rate of LO 16-2, 16-3 Dwight Donovan, the president of Walton Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of three years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $119,000 and for Project B are $44,000. The 19) annual expected cash inflows are $47012 for Project A and $19,591 for Project B. Both investments are expected to provide cash flow benefits for the next three years. Walton Enterprises' cost of capital is 8 percent. (PV of $1 and PVA of $1 (Use appropriate factor(s) from the tables provided.) Book Print rences b. Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return Required a. Compute the net present value of each project. Which project should be adopted based on the net present value approach? approach? Complete this question by entering your answers in the tabs below Required A Required Compute the net present value of each project. Which project should be adopted based on the net present value approach? (Round your intermediate calculations and final answers to 2 decimal places.) Net Present Project A Project B Which project shouid be adopted? Dwight Donovan, the president of Walton Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of three years and no salvage value. Project 8 supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $119,000 and for Project B are $44,000. The annual expected cash inflows are $47012 for Project A and $19,591 for Project 8. Both i benefits for the next three years. Walton Enterprises' cost of capital is 8 percent. (PV of $1 and PVA of S1) (Use appropriate factor(s) from the tables provided.) investments are expected to provide cash flow 25 Required a. Compute the net present value of each project. Which project should be adopted based on the net present value approach? b. Compute the approximate internal rate of return of each project. Which one should be edopted based on the internal rate of return approach Complete this question by entering your answers in the tabs below Required A Required B Compute the approximate internal rate of return of each project. Which one shouid be adopted based on the internal rate of return approach? Internal Rate of Project A Project B Which project should be adopted