Sharp Company has $15,000 to invest. The company is trying to decide between two alternative uses of the funds as follows:

	Invest in Project A		Invest in Project B
Investment required	$	15,000	$	15,000
Annual cash inflows	$	4,000		$ 0
Single cash inflow at the end of 10 years			$	60,000
Life of the project	10 years		10 years

Sharp Company uses a 16% discount rate. (Ignore income taxes.)

Required:

a.	Determine the net present values. (Round discount factor(s) to 3 decimal places. Any cash outflows should be indicated by a minus sign.)

b.

Which investment would you recommend that the company accept?

	Project A
	Project B