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Year 12% Project Arequires an original investment of $62,100. The project will yield cash flows of $18,000 per year for seven years. Projecta has a

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Year 12% Project Arequires an original investment of $62,100. The project will yield cash flows of $18,000 per year for seven years. Projecta has a calculated net present value of $4,190 over a four-year life. Project A could be sold at the end of four years for a price of 517,900 Below is a table for the present value of $1 at Compound interest 6% 10% 0.943 0.909 0.893 0.890 0.826 0.797 0.712 0.792 0.683 0.636 0.747 1 2 3 0.840 0.751 4 5 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest Year 6% 10% 129 1 0.943 0.893 0.909 1.736 2 1.690 2.402 1.833 2.673 3.465 4.212 2.487 3.170 4 3.037 3.605 5 3.791 Use the tables above. (a) Using the present value tables above, determine the pet present value of Project A over a four year ite with salvage value assuming a minimum rate of return of 12%. Round your answer to two decimal places. Enter negative values as negative numbers. (b) which project provides the greatest net present value? Project B

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