Sharp Company has $15,000 to invest. The company is trying to decide between two alternative uses of the funds as follows:

Sharp Company has $15,000 to invest. The company is trying to decide between two alternative uses of the funds as follows:

	Invest in Project A		Invest in Project B
Investment required	$	15,000	$	15,000
Annual cash inflows	$	4,000		$ 0
Single cash inflow at the end of 10 years			$	60,000
Life of the project	10 years		10 years

Sharp Company uses a 16% discount rate. (Ignore income taxes.)

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.

Required:

a.	Determine the net present value. (Negative amounts should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

	Net Present Value
Project A	$ 4,332
Project B	$ -1,380

b.	Which investment would you recommend that the company accept?
	Project A