APPLY THE CONCEPTS: Net present value and Present value index Ewing Engineering is looking to invest in Project A or Project B. The data surrounding each project is provided below. Ewing's cost of capital is 8%. Project A Project B This project requires an initial investment of This project requires an initial investment of $170,000. The project will have a life of 8 $140,000. The project will have a life of 7 years. Annual revenues associated with the years. Annual revenues associated with the project will be $130,000 and expenses project will be $111,000 and expenses associated with the project will be $35,000. 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. Present Value of an Annuity of $1 at Compound Interest. Note: Use a minus sign to indicate a negative NPV. If an amount is zero, enter"O". Enter the present value index to 2 decimals. Project A Project B Total present value of net cash flow 265,000 x Amount to be invested 170,000 140,000 Net present value Present value index: Project A Project B Based upon net present value, which project has the more favorable profit prospects? Based upon the present value index, which project is ranked higher