Exercise $12-14($Algo$)$ Comparison of Projects Using Net Present Value $[$LO$12-2]$

Labeau Products. Uimited, of Perth, Australa, has $$25,000$ to irvest in one of the following two projects:

$\backslash$table$[[,$Project X$,$Project y$],[$Investment reguired,$525,600,$$ $25\mathrm{.}600],[$Anhual cash intlom,$ $8,$ Ceb,$],[$Sinple cast inflea at the end of $6$ years,,$ $60,$ e$60],[$life of the project,$6$ years,$6$ years$]]$

The company's dicourt rate is $2\%.$

Click here to vere fotibet $128\mathrm{.}9$ and Eyhabit $128-2.10$ determine the appropriate discount factopls$)$ using tables.

Required:

Compute the net present value of Project $x$

Compute the net present value of Project $Y.$

Which project should the compary accept?

Cemplete this question by entering your anwers in the tabs below.

Arowired $1$

Anquired $2$

Compule ithe ret present value of Fropect K $.$

Nobe: Negutive amounts should be Indicated by a minus sign. Round your fral answer to the nearest whole dolur anount.

Net perient rube