Dwight Donovan, the president of Donovan 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 four 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 $400,000 and for Project B are $160,000. The annual expected cash inflows are $126,000 for Project A and $52,800 for Project B. Both Investments are expected to provide cash flow benefits for the next four years. Donovan Enterprises' desired rate of return is 8 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) 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 adopted 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 net present value of each project. Which project should be adopted based on the net present value approach? (Round your final answers to 2 decimal places.) Net Present Value Project Project Which project should be adopted? Project A Required TABLE 1 PRESENT VALUE OF $1 9% M 4% 5% 6% 7% 10.961538 0.952381 0.943396 0.934579 2 0.924556 0.907029 0.889996 0.873439 3 0.888996 0.863338 0.839619 O S16295 4 0.854804 0.522702 0.792091 0.762895 5 0.521927 0.793526 0.747258 0.712936 6 0.790315 0.746215 0.704961 0.666342 7 0.759918 0.710651 0.665057 0.622750 S 0.730690 0.676839 0.627412 0.582009 9 0.702587 0.614609 0.59159S 0.543934 10 0.675564 0.613913 0.558395 0.508349 11 0.649581 0.584679 0.526785 0.475093 12 0.624597 0 556337 0.496969 0.444012 13 0.600574 0.530321 0.405839 0.414964 0.577475 0.505063 0.442301 0.357817 15 0.555265 0.481017 0.417265 0.362446 16 0.533908 0.458112 0.393616 0.335735 17 0.513373 0.436297 0.371364 0.316574 18 0.493625 0:415521 0.350344 0.295164 19 0.474642 0.395734 0.330513 0.276505 20 0.456357 0 376889 0.311305 0.256419 8 0.925926 0.917431 0.857339 0.841650 0.793832 0.772133 0.735030 0.708425 0.650583 0.649931 0630170 0.596267 0.583490 0.547034 0.540269 0.501 806 0.500249 0.460428 0.463193 0.422411 0.428353 0.387533 0.397114 0.355535 0.367695 0.326179 0.340461 0.299246 0.315242 0 274535 0.291990 0.251870 0.270269 0.231073 0 250249 0.211994 0.231712 0.191490 0.214545 0.173.131 10% 0.909091 0.826446 0.751315 0.683013 0.620921 0.564474 0.513158 0.466507 0.424095 0.385543 0.350494 0.315631 0.239664 0.263331 0.239392 0.217629 0.197345 0.179359 0.163505 0.145614 12% 14% 16% 20% 0.892857 0.877193 0.862069 0.833333 0.797194 0.769468 0.743163 0.694444 0.711780 0.674972 0.640658 0.578704 0.635518 0.592030 0.552291 0.482253 0.567427 0.519369 0.476113 0.401878 0.506631 0.455587 0.410442 0.334898 0.452349 0.399637 0.353830 0.279082 0.403883 0.350559 0.305025 0.232568 0.360610 0.307508 0.262953 0.193807 0.321973 0.269744 0.226694 0.161506 0.287476 0.236617 0.195417 0.134588 0.256675 0.207559 0 169463 0.112157 0.229174 0.152069 0.145227 0.093461 0.201620 0.159710 0.125195 0.077587 0.132696 0.140096 0.107927 0.061905 0.163122 0.122992 0.093041 0.05408S 0.1456-14 0.107800 0.050207 0.045073 0.130010 0 09:1561 0.069144 0.037561 0.1 16107 0.002948 0.059007 0031301 0.103667 0.072762 0.051385 0.026034 TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 19 5% 7% 89 98 10% 12% 14% 16% 20% 0961538 0 952381 0.943396 0.934579 0.925926 0.917431 0.909091 0.892857 0.877193 0.862069 0.833333 2 1.536095 1859410 1.833393 1.80SOIS 1.783265 1.759111 1.735537 1.690051 1.646661 1.605232 1.527778 3 2.775091 2.723248 2.673012 2.624316 2577097 2.531295 2,436852 2.401831 2.321632 2.245890 2.106481 4 3629995 3.545951 3465106 3.387211 3.312127 3.239720 3.169565 3037349 2913712 2.798181 2.583735 5 4.451822 4.329477 4212364 4.100197 3.992710 3.889651 3.790787 3.604776 3.433081 3.274294 2 990612 6 5.242137 5.075692 4.917324 4.766540 4.622330 4.435919 4.355261 1.111407 3.893668 3.684736 3.325510 7 6 002055 5.736373 5.582381 5.359259 5 206370 5.032953 4.865419 4.563757 4.28G30S 4038565 3.604592 S 6.732745 6.463213 6.209794 5.971299 5.7466395.534819 5.334926 4.967640 4.638364 4343591 3.837160 9 7.435332 7 107522 6.801692 6.515232 6.246683 5.995247 5.759024 5.328250 49.46372 4.606544 4030967 10 3.110896 7.721735 7:360037 7.023582 6710031 6.417658 6.144567 5.650223 5.216116 4.833227 4.192472 11 3.760477 8.306114 7 556875 7.498674 7.130961 6305191 6.495061 5.937699 3452733 5.028614 4 327000 12 9.385074 3.363252 8.333544 7.942636 7.536078 7160725 6.813692 6:194374 5.660292 5.197107 4.439217 13 9.985613 9.393573 3.852603 3.357651 7.903776 7436901 7 103356 6.423543 3.342362 5.342334 4532681 10.563123 9 593611 9.20.1934 8.745468 8 244237 7.736150 7.366607 6.6251686,002072 5.467529 4.610567 15 11 118382 10.379658 9.712249 9.107914 3.559479 3060635 7606030 6.S10363 6 142103 5.575456 4675473 16 11.652296 10.837770 10.105393 9116619 5 051309 0.312550 7.023709 6.973936 6 263060 3.063497 4.729561 12 12 165009 11 274060 10.477260 9.763223 9.121633 0.543631 3 021553 7.119630 6.372859 5.743704 4.774634 15 12.650207 11.609557 10.527603 10.059007 9371337 8.7556255.201412 7.2.19670 6.467420 19 5817548 4.812195 13.133930 12 ODS321 11150116 10.335595 9003599 3005115 3.361920 2.365777 6550369 5.577455 4.843496 13590326 12.462210 11.469921 10.59-1014 9.016147 9.123516 5.513564 7469114 0.623131 5.928841 4.569550