12 Next question Use the NPV method to determine whether Root Products should invest in the following projects: Project A costs $275,000 and offers seven annual net cash inflows of $57,000. Root Products requires an annual return of 14% on projects like A. Project 8 costs $375,000 and offers ten annual net cash inflows of $68,000. Root Products demands an annual return of 10% on investments of this nature (Click the icon to view the present value annuity table.) (Click the icon to view the present value table) (Click the icon to view the future value annuity table.) (Click the icon to view the future value table.) Requirement . What is the NPV of each project? What is the maximum acceptable price to pay for each project? es ts Calculate the NPV of each project. (Round your answers to the nearest whole dolar. Use parentheses or a minus sign for negative not present values.) The NPV of Project Als Reference A f this Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.9090.893 0.877 0.862 0.847 0.833 Period 2 1.970 1.942 1.9131.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 Period 3 2.941 2.884 2.8292.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3,037 2.914 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.2425.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.0025.786 5.5825.206 4.8684,564 4.288 4.039 3.812 3.605 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 Period 9 8.566 8.1627.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 Period 10 9.471 8.9838.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 12 11.255 10.575 9.9549.385 8.863 8.384 7.536 6.8146.194 5.660 5.197 4.793 4.439 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 Period 1413.004 12.106 11.296 10.563 9.899 9.2958.244 7.3676.628 6.002 5.468 5,008 4.611 Period 15 13.865 12.849 11.938 11.11810.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 Period 2018.046 16.351 14.877|13.590 12.462 11.470 9.818 8.5147.4696.623 5.929 5,353 4.870 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 Period 30 25.808 22 396 19.600 17.292 15.372 13.765 11.2589.4278.055 7.003 6.177 5.517 4.979 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 6.233 5.548 4.997 ues Print Done Clear all CH this Video Get more help 52 $3 A. this to to e Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 09620.952 0.943 0.926 0.9090.893 0.877 0.862 0.847 0.833 Period 2 0.9800.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.7180.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 | 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.4520.400 0.354 0.3140.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.4040.351 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.5920.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 110.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 Period 120.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 130.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.750 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 200.820 0,673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.0160.010 Period 30 0.742 0.552 0.412 0.308 0.231 0.1740.099 0.057 0.033 0.0200.012 0.007 0.004 Period 400.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 of ues.) EA PV Ad Rure. the the Periods Period 1 Period 2 Period 3 Period 4 Period 5 en N Period 6 Period 7 Period 8 Period 9 Period 10 Future Value of Annuity of S1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 2060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.101 5.204 5.309 5.416 5.526 5.637 5,867 6.105 6.353 6.610 6.877 7.154 7.442 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 7.214 7.434 7,662 7.898 8.142 8.394 8.923 9.487 10,089 10.730 11.414 12.142 12.916 8.286 8.583 8.892 9214 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15 327 16.499 9.369 9.755 10.159 10.583 11.027 11491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 10.462 10.950 11.464 12.006 12.578 13.181 1448715.937 17549 19.337 21.321 23.521 25.959 11.567 12.169 12.808 13.486 14.207 14,972 16,645 18.531 20.655 23.045 25.733 28.755 32.150 12683 13.412 14.192 15.026 15,917 16.870 18.977 21.384 24 133 27.271 30.850 34.931 39.581 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 14.94715.974 17.086 18.292 19.599 21.015 24 215 27 975 32 393 37.581 43.672 50 818 59.196 16.097 17.29318.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 22.019 24 297 26.870 29.778 33.066 36.786 45.76257 275 72.052 91.025 115,380 146.628 186.688 28.243 32.03036.459 41.646 47.727 54.865 73.106 98.347 133,334 181.871 249.214 342.603 471.981 34.785 40,568 47.575 56.085 66.439 79.058 113.283 164 494 241,333 356.787 530 312790.948 1,181.882 48.88660.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.2137,343.858 he Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 Future Value of $1 nature. Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.010 1.020 1.030 1.041 1.051 4% 1.040 1.082 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 1.135 1.170 1.217 1.062 1.072 1.083 1.094 1.105 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 1.126 1.149 1.172 1.195 1.219 1243 1.268 1.294 1.319 1.346 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 1.276 1.338 1469 1.611 1.762 1.925 2.100 2.288 2488 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 1.407 1.504 1.714 1.949 2211 2.502 2.826 3.185 3.583 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 1.796 2.012 2518 3.138 3.896 4.818 5.936 7.288 8.916 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 2.079 2.397 3.172 4.177 5.474 7.138 9.265 11.974 15.407 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38338 3.386 4.292 6.848 10.83517.000 26.462 40.874 62.669 95 396 4.322 5.743 10.063 17.449 29.960 50.950 85 850 143,371 237.376 7.040 10.286 21.725 45.25993.051 188,884378.721 750 378 1.469.772 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1.489 1.384 1.426 1.469 1,513 1.558 1.539 1.601 1.665 1.732 1.801 Period 20 Period 25 Period 30 Period 40 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801