Net Present Value --Unequal Lives Project 1 requires an original investment of $76,500. The project will yield cash flows of $11,000 per year for nine years. Project 2 has a calculated net present value of $16,000 over a seven-year life. Project 1 could be sold at the end of seven years for a price of $48,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of Si at Compound Interest tables shown below. Year uw Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.284 0.194 0 .558 0.386 0.322 0.247 0.162 10 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.352 2.991 4.917 4.355 4.111 3.784 3.326 5.582 4.868 4.564 4.160 3.605 eBook 0.890 0.840 Uw Calculator 1.750 0.694 0.658 0.579 0.572 0.482 0.792 0.747' Show-Me How 0.797 3.751 0.712 0.683 0.636 0.621 0.567 0.564 0.507 0.513 0.452 0.467 0.404 0.424 0.361 0.386 0.322 0.497 0.432 0.402 0.335 0.705 0.376 0.665 0.627 0.592 0.558 0.279 0.233 0.194 0.162 0.327 0.284 0.247 9 1.833 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.352 2.991 4.917 4.355 4.111 3.784 3.326 5.582 4.868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 7.360 6.145 5.650 5.019 4.192 00W 10 a. Determine the net present value of Project 1 over a seven-year life with residual value, assuming a minimum rate of return of 6%. If required, round to the nearest dollar. $ 30,241 b. Which project provides the greatest net present value? Proiect 1