I l . u I I 6 G ['j https://v2.cengagenow.com/iIrn/takeAssignm... 1'3 {2 . Ch 11 Extra Credit ldl E]: I Net Present ValueUnequal Lives l 0 Project 1 requires an original investment of $47,800. The project will yield cash flows of $12,000 per year for nine years. Project 2 has a calculated net present value of $11,500 over a seven-year life. Project 1 could be sold at the end of seven years for a price of $54,000. 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 Year 6%: 100/0 12%: 150/0 200/0 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 e 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Present Value of an Annuity of $1 at Compmund Interest Year 69/0 100/0 120/0 1 50/0 209/0 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3,605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.532 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.467 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine the net present value of Project 1 over a seven-year life with residual value, assuming a minimum rate of return of 20%. If required, round to the nearest dollar. b. Which project provides the greatest net present value? Project 2 vl J Submit Assrgnment for Grading l