Web Technologies is deciding how best to use its limited capital and must choose between two different projects with different initial investments and annual cash flows.

Year	Project 1	Project 2
Initial Investment	$260,000	$315,000
	Cash Inflows	Cash Inflows
1	$85,000	$92,000
2	$85,000	$92,000
3	$85,000	$92,000
4	$85,000	$92,000
Total	$340,000	$368,000

Work Area:

Project 1:

PV of Annual Cash Flow (above)	$
Less: Initial Investment	$260,000
Net Present Value (NPV) for Project 1	$

Project 2:

PV of Annual Cash Flow (above)	$
Less: Initial Investment	$315,000
Net Present Value (NPV) for Project 2	$

Question 1

Based on your calculations from the Net Present Value Exercise, what is the present value of the annuity cash flows for Project 1? Note: This question is asking for the present value of the annuity cash flows only, not the NPV. Also, select the closest answer to your calculation due to possible rounding.

1. $85,209
2. $362,982
3. $134,267
4. $281,531

Question 2

Based on your calculations from the Net Present Value Exercise, what is the present value of the annuity cash flows for Project 2? Note: This question is asking for the present value of the annuity cash flows only, not the NPV. Also, select the closest answer to your calculation due to possible rounding.

1. $739,109
2. $34,286
3. $304,716
4. $487,211