Kramer Corporation is consideringtwo investment projects, each of which would require $50,000 Cost and cash flow data concerning the two projects are given below. Project A Project B Investment in high-spedd photocopier $50,000 investment in working capital $50,000 Annual net cast inflows $9,000 $9,000 Life of the project 8 years 8 years The high speed photocopier would have a salvage value of $5,000 in eight6 years. For tax purposes, the company computes depreciation deductions assuming zero salvage calue and uses straigh-line depreciation. The photocopier would be depreciated over eight years. At the end of eight years, the investment in working capital would be relesed for use elsewhere. The company requires an after tax return of 10% on all investments. the rate is 30%/
Requires: Compute the net present value of each investment projects. ( round to the nearest dollar) PLEASE SHOW ALL WORK and the formula for NPV..