Net Present Value Versus Internal Rate of Return For discount factors use Exhibit 12B-1 and Exhibit 12B-2. Skiba Company is thinking about two different modifications to its current manufacturing process. The after-tax cash flows associated with the two investments follow: Year Project I Project II 0 $(100,000) $(100,000) 1 63,857 2 134,560 63,857 Skiba's cost of capital is 8%. Required: 1. Compute the NPV and the IRR for each investment. Round present value calculations and your final NPV answers to the nearest dollar. Round IRR answers to the nearest whole percent. Line Item Description NPV IRR Project I $fill in the blank 1 fill in the blank

Exhibit 12B.1 Present Value of a Single Amount* Exhibit 12B.2 Present Value of an Annuity* Pn=(1/I)[11/(1+I)n]