Tremaine Company is considering two mutually exclusive long-term investment projects. Project ABC would require an investment of $240,000, have a useful life of 4 years, and annual cash flows of $78,000. Project XYZ would require an investment of $230,000, have a useful life of 5 years, and annual cash flows of $66,000. Cost of capital is 12 percent.

Calculate NPV. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided.)

PROJECT ABC

Table or Calculator Function:
Cash Inflow
n =
i =	12	%
Table Factor	3.0373
Future Cash Flow
Original Investment	240,000
NPV of Project ABC

PROJECT XYZ

Table or Calculator Function:
Cash Inflow
n =
i =	12	%
Table Factor	3.6048
Future Cash Flow
Original Investment	230.000
NPV of Project XYZ