. Determine the net present value of Project 1 over a eight-year life with residual value, assuming a minimum rate of return of 20%. If required, round to the nearest dollar.

Project 1 requires an original investment of $56,200. The project will yield cash flows of $14,000 per year for 10 years. Project 2 has a calculated net present value of $16,100 over a eight-year life. Project 1 could be sold at the end of eight years for a price of $71,000 Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below Present Value of $1 at Compound Interest 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 Year 1590 0.870 0.890 0.826 0.797 0.756 0.658 0.572 0.747 0.621 0.567 0.497 0.705 0.564 0.507 0.432 0.376 0.327 0.284 0.247 6% 1090 1290 0.943 0.909 0.893 0.840 0.751 0.712 0.792 0.683 0.636 0.665 0.513 0.452 0.627 0.467 0.404 0.592 0.424 0.361 0.558 0.386 0.322 10