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Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $128,10 Project 2 requires an initial investment of $93600. Assume the company requires a 10% rate of return on its investments. (PV of $ of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Project 1 Project 2 Sales of new product $ 101,700 $ 79,400 Expenses Materials, labor, and overhead (except depreciation) 67,600 33,280 Depreciation-Machinery 18,300 18,720 Selling, general, and administrative expenses 8,320 20,800 Income $ 7,480 $ 6,600 Compute the net present value of each potential investment. Use 7 years for Project 1 and 5 years for Project 2. (Negative net prese values should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the neares whole dollar.) Project 1 Answer is complete but not entirely correct. Present Net Cash Value ol Present Value Flows Annuity at of Net Cash Flows 10% 25,780 4.8688 125,518 (128,100 (2,582) X Years 1-7 Initial investment Net present value Project 2 Net Cash Flows X Present Value of Annuity at 10% 3.7911 Present Value of Net Cash Flows 25.320 x IS Years 1-5 Initial investment 95,991 (93.600) 2.391 Not present value

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