1. The management of Quest Media Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows:

   Year	Radio Station		TV Station
   1	$230,000		$460,000
   2	230,000		460,000
   3	230,000		460,000
   4	230,000		460,000

   Present Value of an Annuity of $1 at Compound Interest
   Year	6%	10%	12%	15%	20%
   1	0.943	0.909	0.893	0.870	0.833
   2	1.833	1.736	1.690	1.626	1.528
   3	2.673	2.487	2.402	2.283	2.106
   4	3.465	3.170	3.037	2.855	2.589
   5	4.212	3.791	3.605	3.352	2.991
   6	4.917	4.355	4.111	3.784	3.326
   7	5.582	4.868	4.564	4.160	3.605
   8	6.210	5.335	4.968	4.487	3.837
   9	6.802	5.759	5.328	4.772	4.031
   10	7.360	6.145	5.650	5.019	4.192

   The radio station requires an investment of $656,650, while the TV station requires an investment of $1,190,940. No residual value is expected from either project.

   Required:

   1a. Compute the net present value for each project. Use a rate of 10% and the present value of an annuity of $1 in the table above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest whole dollar.

   	Radio Station	TV Station
   Present value of annual net cash flows
   Less amount to be invested
   Net present value

   1b. Compute a present value index for each project. If required, round your answers to two decimal places.

   	Present Value Index
   Radio Station
   TV Station

   2. Determine the internal rate of return for each project by (a) computing a present value factor for an annuity of $1 and (b) using the present value of an annuity of $1 in the table above. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest whole percent.

   	Radio Station		TV Station
   Present value factor for an annuity of $1
   Internal rate of return		%		%