Part Five APPLY THE CONCEPTS: Net present value and Present value index Krause Industries is looking to invest in Project A or Project B. We data surrounding each project is provided below. Klause's cost of capital is 3%. mum This project requires an initial investment of This project requires an initial investment of $172,500. The project will have a life of 8 $140,000. The project will have a life of 7 years. Annual revenues associated with the years. Annual revenues associated with the project will be $130,000 and apenses project will be $113,000 and expenses associated with the project will be $35,000. associated with lhe project will be $60,000. Calculate the net present value and the present value index for each project using the present value tables provided below. Present Value of $1 (a single sum) at Compound Interest. Present Value of an Annuity of $1 at Compound Interest. Note: I Use a minus sign to indicate a negative NPV. I If an amount is zero, enter '0". I Enter the present value index to 2 decimals. Project A Total present value of net cash ow fag X ti Net present value D Amount to be invested Present value index: Project A