Net Present Value Method, Internal Rate of Return Method, and Analysis.The management of Saturn Networks Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows:

The radio station requires an investment of $1,275,540, while the TV station requires an investment of $1,770,100. No residual value is expected from either project.

Required:
1. a. Compute the net present value for each project. Use a rate of 10% and the present value of an annuity of $1 in the above table. If required, round to the nearest dollar.

1. b. Compute a present value index for each project. If required round your answer to two decimals places
Present value index
Radio station ......___________
TV station .........___________
2. Determine the internal rate of return for each project by (a) computing a present value factor for an annuity of $1 and (b) using the present value of an annuity of $1 table above. if required round your present value factor answer to three decimal places and internal rate of return to the nearest percent.

Year TV Station Radio Station $420,000 420,000 420,000 420,000 $620,000 620,000 620,000 620,000 4 Radio station TV station Present value of annual net cash flows Less amount to be invested Net present value