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Problem 16-19A (Algo) Using net present value and internal rate of return to evaluate investment opportunities LO 16-2, 16-3 Dwight Donovan, the president of Finch Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation the machine is expected to have a useful life of five years and no salvage value. Project supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $106,000 and for Project are $49.000. The annual expected cash inflows are $27.963 for Project A and $13.593 for Project Both investments are expected to provide cash flow benefits for the next five years. Finch Enterprises desired rate of return is 4 percent. PV 51 and PVA OLSD) (Use appropriate factor(s) from the inbles provided) Required a. Compute the net present value of each project. Which project should be adopted based on the net present value approach? b. Compute the approximate intemal rate of return of each project. Which one should be adopted based on the internal rate of retum approach? Complete this question by entering your answers in the tabs below. Hered A Red Compute the net present value of each project. Which project should be adopted based on the net present value approach (Round your final as to 2 decimales) Net Pretend Value Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of each project. Which project should be adopted based on the net present value approach? (Round your final answers to 2 decimal places.) es Net Present Value Project A Project B Which project should be adopted? REGA Required B > Complete this question by entering your answers in the tabs below. Required A Requires Compute the approximate internal rate of return of each project. Which one should be adopted based on the Internal rate return approach Internal Rate of Return Project A Project B Which project should be adopted? % %

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