Part Five APPLY THE CONCEPTS: Net present value and Present value index Darling Engineering is looking to invest in Project A or Project B. The data surrounding each project is provided below. Darling's cost of capital is 8%. mject A This project requires an initial investment of $175,000. The project will have a life at 3 years. Annual revenues associated with the project will be $130,000 and expenses associated with the project will be $35,000. ject B This project requires an initial investment of $137,500. The project will have a life at 7 years. Annual revenues associated with the project will be $115,000 and expenses associated with the 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. Presert Value of $1 (a single sum} at Campourd Interest. Presert Value of an l'llnr'uit'lr at $1 at CompoLnd Irterest. NDfE': - Use a minus sign to indicate a negative NW. - If an amount is zero, enter "0". - Enter the present value index to 2 decimals. Total present value of net cash flow Amount to he invested Net present value Present value index: Project A Project B Project A $: E $E E Project B $|:| |:| $|:|