H Project A requires an original investment of $54,500. The project will yield cash flows of $15,200 per year for 7 years. Project B has a computed net present value$18,500.Below is a table for the present value of $1 at compound interest.Year12345126%3450.9430.8900.8400.7920.7476%0.9431.83310%Below is a table for the present value of an annuity of $1 at compound interest.Year2.6733.4654.2120.9090.8260.7510.6830.62110%0.9091.7362.4873.17012%3.7910.8930.7970.7120.6360.56712%0.8931.6902.4023.0373.605Use the tables above.a. Using the tables above, determine the net present value of Project A over a 4-year life with salvage value assuming a minimum rate of return of 12%. Round yb. Which project provides the greatest net present value?

Present Value is the Value of one Dollar as of today which will be received in Future. For the…

Project A requires an original investment of $54,500. The project will yield cash flows of $15,200 per year for 7 years. Project B has a computed net present valu $18,500. Below is a table for the present value of $1 at compound interest. Year 1 2 3 4 5 Year 1 2 6% 3 4 5 0.943 0.890 0.840 0.792 0.747 6% 0.943 1.833 0.636 0.567 Below is a table for the present value of an annuity of $1 at compound interest. 10% 12% 0.893 1.690 2.402 3.037 3.605 2.673 10% 3.465 4.212 0.909 0.826 0.751 0.683 0.621 0.909 1.736 12% 2.487 3.170 3.791 0.893 0.797 0.712 Use the tables above. a. Using the tables above, determine the net present value of Project A over a 4-year life with salvage value assuming a minimum rate of return of 12%. Round b. Which project provides the greatest net present value?