This is one part of an assignment I cannot figure out. Will you please assist in helping me answer the ??? areas.

APPLY THE CONCEPTS:Net present value and Present value index

Ewing Manufacturing is looking to invest in Project A or Project B. The data surrounding each project is provided below. Ewing's cost of capital is 8%.

Project A

This project requires an initial investment of $165,000. The project will have a life of 8 years. Annual revenues associated with the project will be $130,000andexpenses associated with the project will be $35,000.

Project B

This project requires an initial investment of $130,000. The project will have a life of 7 years. Annual revenues associated with the project will be $115,000andexpenses associated with the project will be $60,000.

Calculate thenet present valueand thepresent value indexfor 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:

Use a minus sign to indicate a negative NPV.

If an amount is zero, enter "0".

Enter the present value index to 2 decimals.

Total present value of net cash flow: Project AProject B

Total present value of net cash flow$ ????$ ????

Amount to be invested$165,000$130,000

Net present value$ ???$ ???

Present Value index:??????

Based upon net present value, which project has the more favorable profit prospects?Which project????

Based upon the present value index, which project is ranked higher?Which project???