APPLY THE CONCEPTS: Net present value and Present value index

Underwood Corporation is looking to invest in Project A or Project B. The data surrounding each project is provided below. Underwood's cost of capital is 8%.
Project A	Project B
This project requires an initial investment of $170,000. The project will have a life of 8 years. Annual revenues associated with the project will be $130,000 and expenses associated with the project will be $35,000.	This project requires an initial investment of $140,000. The project will have a life of 7 years. Annual revenues associated with the project will be $115,000 and expenses associated with the project will be $60,000.

Calculate the net present value and the present value index for each project using the present value tables provided below.

Present Value of $1 (a single sum) at Compound Interest.