What is the Net Present Value for each project and which one is more advantageous?

What is the present value index for each project and which one is more advantageous?

We are considering investing in the following 2 different modes of transportation to take clients on scenic tours of the Midwest: Project A: Prop Plane Project B: Helicopter $368,000 5 years Cost Life Residual Value Rate of return $368,000 5 Years $0 12% $0 12% Expected Returns Year 1 Year 2 Year 3 Year 4 Year 5 Income 61,400 51,400 36,400 26,400 (3,600) Cash Flow 135,000 125,000 110,000 100,000 70,000 Income 34,400 34,400 34,400 34,400 34,400 Cash Flow 108,000 108,000 108,000 108,000 108,000 TABLE Best Value of 1/1 + Rate Periods 16 2x ** 5 2x * $ 90 15% Periods 1 3 3 + + 5 0 6 7 8 - 0.9901 0.0804 0.0700 0.9013 0.9524 0.0454 0.0345 0.250 0.00 0.000 0.5929 0.8606 0.9803 0.96 0.0426 0.96 0.9070 0.3900 0.74 0.53 0.4 0.6 0.797 0.75 0.9700 0.03 0.01 0.880 0.5635 0.500 0.8163 0.9 0.7 0.753 0.1 0.55 0.0010 0.9238 0.8565 0.5341 0.1 0.71 0.7699 7350 0.0 0.68 0.035 0.5718 0.9525 0.005 0.500 0.3210 0.035 0.7473 0.7230 0.6806 6499 0.0009 0.04 0.07 0.0420 0.8880 0.875 0.7903 0.16 0.7050 0.6663 age og 56 0.06 0.4323 0.0327 0.8706 0.313 0.3599 0.7107 0.6651 0.27 oss 03.00 $132 0.4323 0.3759 0.9233 0.8535 0.789 0.7307 0.6768 0.64 0.550 0.5403 0.3019 0.4665 0.4039 0.3969 0.9143 0.8368 0.7664 0.7026 0.6446 0.5929 0.5439 .002 0.4504 0.4241 03006 0.25 0.0051 0.8203 0.7141 0,6756 0.6139 0.5584 3053 0.46 0.4224 0.3555 0.3220 0-247 0.3969 0.8043 0.7224 0.6496 0.587 0.5268 0.4753 0.4259 0.350 02575 -2149 0.8874 0.7885 0.7014 0.6246 05556 0.4970 0:4400397103555 03386 0.2967 0.1809 0.8787 0.7730 0.6510 0.6006 05303 0.4688 0.4150 0:367 322 0.2897 0.2292 0.16 0.8900 0.7579 0.6611 0.5775 Ogost 0.4423 038-8 3405 0.299 0.2633 0.2046 0.1413 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.5 0-2394 0.167 0.1229 5 0 10 10 EL 12 13 14 14 15 15 TABLE 3 Present Value of an Annuity of 1 (1+1 Rate Periods 1% 23 3% 4% 5% 6% 8% 9 10% 12 15% 1 3 4 5 6 7 8 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9250 0.0174 0.9091 0.8929 0.8696 1.9704 1.9416 1.9135 1.8861 18594 15334 18050 1.7833 1759117355 1.090 1.6257 2.9410 2.8839 2.8286 2.7751 27232 2.673026243 2.5773 2-5313 2.4869 2.4018 2.2832 3-9030 3.8077 3.7171 3.629935460 3-4051 33673 33121 3-2397 3.1699 3.0373 28550 4.8534 4.7135 4.5797 44518 43295 42124 4.1002 3.99273.8892 3.7908 3.6048 3-3522 5.7955 5.6014 5-4172 5.2421 5.0757 4.9173 47665 4.6229448594-3553 41114 3.7845 6.7282 6.4720 6.9303 0.002157664 5.5824 538935-2004 5.033048684 4.3638 4.2604 7.6517 73255 7.0197 6.7347 6.4632 6.2098 59723 546658348 53349 4.9076 4-4873 8.5660 8.162 7.7661 74353 7.3078 6.8017 65152 6246939952 57590 53282 4.7716 9.4713 8.9826 8.5302 8.1109 7.7217 73001 70236 6.7101 6.4177 6.1446 5.6goa 5.0188 30,3676 9.786892526 8,7605 8.9064 7886974987 7:1390 6.8052 6.4951 59377 52337 11.9551 10.5753 9-9540 93651 8.5633 8383879427 73361 7.1007 6.8237 6.1944 54206 12.1337 11.3484 10.6350 9.9856 0.3936 8.8527 835777.90387-4869 7.1034 6.4235 5-5831 13.0037 18.1063 11.2961 10.56319.8986 9.29308.7455 8244277869 73609 661282 57245 13.8651 12.8493 119379 11.1184 103797 9.712 9-1079 8.5595 8.0607 7.6061 6.8109 5.8474 9 10 TI 12 13 14 15