Problem 10-19A Using net present value and internal rate of return to evaluate investment opportunities Dwight Donovan, the president of Donovan Enterprises, is considering two investment opportunin Because of limited resources, he will be able to invest in only one of them. Project A is to purthau machine that will enable factory automation; the machine is expected to have a useful life o four yeay salvage value. Project B supports a training program that will improve the skills of emploie rating the current equipment. Initial cash expenditures for Project A are $400,000 and for 60,000. The annual expected cash inflows are $126,000 for Project A and $52,800 for Project B. Project B Both investments are expected to provide cash flow benefits for the next four years. Donovan Enterprises' cost of capital is 8 percent. Required a. Compute the net present value of each project. Which project should be adopted based on the net b. Compute the approximate internal rate of return of each project. Which one should be adopted c. Compare the net present value approach with the internal rate of return approach. Which method present value approach? Round your computations to two decimal points. based on the internal rate of return approach? Round your rates to six decimal points. is better in the given circumstances? Why