**I have been having trouble with this assignment. Can someone please breakdown the problem and explain it to me including all work broken down please**

Dwight Donovan, the president of Munoz Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of four years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $117,000 and for Project B are $49,000. The annual expected cash inflows are $45,196 for Project A and $15,458 for Project B. Both investments are expected to provide cash flow benefits for the next four years. Munoz Enterprises desired rate of return is 6 percent. (PV of $1 and PVA of $1)

1. Compute the net present value of each project. Which project should be adopted based on the net present value approach?

2. Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach?

TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 n 4% 5% 6% 7% 1 0.961538 0.952381 0.943396 0.934579 2 1.886095 1.859410 1.833393 1.808018 3 2.775091 2.723248 2.673012 2.624316 4 3.629895 3.545951 3.465106 3.387211 5 4.451822 4.329477 4.212364 4.100197 6 5.242137 5.075692 4.917324 4.766540 7 6.002055 5.786373 5.582381 5.389289 8 6.732745 66.463213 6.209794 5.971299 9 7.435332 7.107822 66.801692 6.515232 10 8.110896 7.721735 7.360087 7.023582 11 8.760477 8.306414 7.886875 7.498674 12 9.385074 8.863252 8.383844 7.942686 13 9.985648 9.393573 8.852683 8.357651 14 10.563123 9.898641 9.294984 8.745468 15 11.118387 10.379658 9.712249 9.107914 16 11.652296 10.837770 10.105895 9.446649 17 12.165669 11.274066 10.477260 9.763223 18 12.659297 11.689587 10,827603 10.059087 19 13.133939 12.085321 11.158116 10.335595 20 13.590326 12.462210 11.469921 10.594014 8% 0.925926 1.783265 2.577097 3.312127 3.992710 4.622880 5.206370 5.746639 6.246888 6.710081 7.138964 7.536078 7.903776 8.244237 8.559479 8.851369 9.121638 9.371887 9.603599 9.818147 9% 0.917431 1.759111 2.531295 3.239720 3.889651 4.485919 5.032953 5.534819 5.995247 6.417658 6.805191 7.160725 7.486904 7.786150 8.060688 8.312558 8.543631 8.755625 8.905115 9.128546 10% 0.909091 1.735537 2,486852 3.169865 3.790787 4.355261 4.868419 5.334926 5.759024 6.144567 6.495061 6.813692 7.103356 7.366687 7.606080 7.823709 8.021553 8.201412 8.364920 8.513564 12% 0.892857 1.690051 2.401831 3.037349 3.604776 4.111407 4.563757 4.967640 5.328250 5.650223 5.937699 6.194374 66.423548 6.628168 6.810864 6.973986 7.119630 7.249670 7.365777 7.469444 14% 0.877193 1.646661 2.321632 2.913712 3.433081 3.888668 4.288305 4.638864 4.946372 5.216116 5.452733 5.660292 5.842362 6.002072 6.142168 6.265060 6.372859 66.467420 6.550369 6.623131 16% 0.862069 1.605232 2.245890 2.798181 3.274294 3.684736 4.038565 4.343591 4.606544 4.833227 5.028644 5.197107 5.342334 5.467529 5.575456 5.668497 5.748704 5.817848 5.877455 5.928841 20% 0.833333 1.527778 2.106481 2.588735 2,990612 3.325510 3.604592 3.837160 4.030967 4.192472 4.327060 4.439217 4.532681 4.610567 4.675473 4.729561 4.774634 4.812195 4.843496 4.869580 SHNMON TABLE 1 PRESENT VALUE OF $1 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 20% 0.961538 0.952381 0.943396 0.934579 0.925926 0.917431 0.909091 0.892857 0.877193 0.862069 0.833333 0.924556 0.907029 0.889996 0.873439 0.857339 0.841680 0.826446 0.797194 0.769468 0.743163 0.694444 0.888996 0.863838 0.839619 0.816298 0.793832 0.772183 0.751315 0.711780 0.674972 0.640658 0.578704 0.854804 0.822702 0.792094 0.762895 0.735030 0.708425 0.683013 0.635518 0.592080 0.552291 0.482253 0.821927 0.783526 0.747258 0.712986 0.680583 0.649931 0.620921 0.567427 0.519369 0.476113 0.401878 0.790315 0.746215 0.704961 0.666342 0.630170 0.596267 0.564474 0.506631 0.455587 0.410442 0.334898 0.759918 0.710681 0.665057 0.622750 0.583490 0.547034 0.513158 0.452349 0.399637 0.353830 0.279082 8 0.730690 0.676839 0.627412 0.582009 0.540269 0.501866 0.466507 0.403883 0.350559 0.305025 0.232568 9 0.702587 0.644609 0.591898 0.543934 0.500249 0.460428 0.424098 0.360610 0.307508 0.262953 0.193807 10 0.675564 0.613913 0.558395 0.508349 0.463193 0.422411 0.385543 0.321973 0.269744 0.226684 0.161506 11 0.649581 0.584679 0.526788 0.475093 0.428883 0.387533 0.350494 0.287476 0.236617 0.195417 0.134588 12 0.624597 0.556837 0.496969 0.444012 0.397114 0.355535 0.318631 0.256675 0.207559 0.168463 0.112157 13 0.600574 0.530321 0.468839 0.414964 0.367698 0.326179 0.289664 0.229174 0.182069 0.145227 0.093464 14 0.577475 0.505068 0.442301 0.387817 0.340461 0.299246 0.263331 0.204620 0.159710 0.125195 0.077887 15 0.555265 0.481017 0.417265 0.362446 0.315242 0.274538 0.239392 0.182696 0.140096 0.107927 0.064905 16 0.533908 0.458112 0.393646 0.338735 0.291890 0.251870 0.217629 0.163122 0.122892 0.093041 0.054088 17 0.513373 0.436297 0.371364 0.316574 0.270269 0.231073 0.197845 0.145644 0.107800 0.080207 0.045073 18 0.493628 0.415521 0.350344 0.295864 0.250249 0.211994 0.179859 0.130040 0.094561 0.069144 0.037561 19 0.474642 0.395734 0.330513 0.276508 0.231712 0.194490 0.163508 0.116107 0.082948 0.059607 0.031301 20 0.456387 0.376889 0.311805 0.258419 0.214548 0.178431 0.148644 0.103667 0.072762 0.051385 0.026084 Required A Required B Compute the net present value of each project. Which project should be adopted based on the net present value approach? (Round your final answers to 2 decimal places.) Net Present Value Project A Project B Which project should be adopted? Project A Required A Required B Required A Required B Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach? Internal Rate of Return % Project A Project B Which project should be adopted? %