1. From the given information, calculate the net present value for a new project undertaken by Adam's Inc. Present value of annual net cash flows Present value of residual value Amount of investment required for the project $3,480,900 280,900 3,300,000 a. $461,800 b. $180,900 c. $3,019,100 d. $3,200,000 2. From the given information, calculate the net present value of a new project proposal received by Mirage Inc. and advise the company whether to accept the project or not. Present value of annual net cash flows Present value of residual value Amount of investment required for the project $1,350,000 90,000 1,300,000 a. $140,000. The positive net present value of $140,000 indicates that the investment in the new project is justified. Hence, accept the project. b. $230,000. The positive net present value of $230,000 indicates that the investment in the new project is justified. Hence, accept the project. c. ($50,000). The negative net present value of $50,000 indicates that the investment in the new project is not justified. Hence, reject the project. d. ($140,000). The negative net present value of $140,000 indicates that the investment in the new project is not justified. Hence, reject the project.