Rowan Company is considering two alternative investment projects. Each requires a $$264,000$ initial investment. Project $A$ is expected

to generate net cash flows of $$74,000$ per year over the next six years. Project $B$ is expected to generate net cash flows of $$64,000$

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)$

Note: 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.

Compute each project's profitability index.

Note: Do not round intermediate values. Enter your answers rounded to the nearest whole dollar.