A company has a decision to make between two investment alternatives. The company requires a 10% return on investment. Predicted data is provided below: 
The present value of an annuity for 6 years at 10% is 4.3553. This company uses straight-line depreciation.
Required:
(a) Calculate the net present value for each investment.
(b) Which investment should this company select? Explain.
Definitions:
Demand
The desire and ability of consumers to purchase goods or services at a given price over a specific period.
Multiproduct Break-even Analysis
An analysis technique used to determine the point at which total revenue equals total costs for multiple products, indicating no profit or loss.
Total Sales
The sum of all sales revenue that a company earns over a given period of time.
Discounted Value
The present value of a future amount of money or stream of income, adjusted for time and risk.
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