3 Homework: Chapter 26 Practice Problems Question 6, E26-25 (simi. Part 1 of 6 > HW Score: 66.67%, 4.67 of 7 points Points: 0 of O Save Use the NPV method to determine whether Preston Products should invest in the following projects Project A Costs $275.000 and offers seven annual net cash inflows of $58 000. Preston Products requires an annual return of 14% on investments of this nature . Project B: Costs S400 000 and offers 10 annual net cash intlows of $75.000 Preston Products demands an annual return of 12% on investments of this nature Click the icon lo view Present Value of $1 table. Click the icon to view Present Value of Ordinary Annuily of 51 lable) Read the requirements Requirement 1. What is the NPV of each project? Assume neither project has a res dual value Round to two decimal places (Enter any factor amounts to three deamal places X XXX Use parentheses or a minus sign for a negative not present value) Caciulate the NPV {net present value) of each project begin by calculating the NPV of Project A Project A: Net Cash Annuity PV Factor Present Years Inflow (i=14%, n=7) Value 1-7 Present value of annuity $ 68,000 G Investment Net present value of Project A Help me solve this Demodocs example Get more help Clear all | Check answer nework: Chanter 26 Practice Problems Question 6, E26-1 - X Reference Reference Present Value of $1 | 1 0.792 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1 Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.8700E Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.7 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.6 Period 4 0.961 0.924 0.888 0.855 0.823 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.5 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.4 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 04 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.3 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.4040.351 0.327 0.3 Period 9 0.914 0.837 0.766 0.703 0.6450.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.2 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.3860.322 0.270 0.247 0.2 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.1 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.1 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.1 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.1 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.1 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.2180.163 0.123 0.1070.C Period 17 10.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.C Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.C Dariad 10 nogo 1 OR 475 n 200 224 222 0404 181 110 7 Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 169 Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.86 Period 2 1.970 1.942 1.9131.886 1.859 1.833 1.808 1.783 1.759 1.736 1.6901.647 1.626 1.60 Period 3 2.9412.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.4022.322 2.283 2.24 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.3123.240 3.170 3.037 2.914 2.855 2.79 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.27 Period 6 5.795 5.601 5.417 5.2425.076 4.917 4.767 4.623 4.4864.355 4.111 3.889 3.784 3.68 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 | 4.288 4.160 4.03 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.6394.487 4.34 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.60 Period 10 9.471 8.9838.530 8.111 7.722 7.360 7.0246.710 6.418 6.145 5.6505.216 5.019 4.83 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.02 Period 12 11.255 10.575 9.954 9.3858.863 8.384 7.943 7.5367.1616.814 6.194 5.660 5.421 5.19 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.8425.583 5.34 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.46 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 5.57 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.9746.265 5.954 5.66 Period 17 15.562 14.292 13.166 12.166 11.274 10.4771 9.763 9.122 8.544 8.022 7.1206.373 6.047 5.74 Period 18 16.398 14.992 | 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.4676.128 5.81 Period 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.3666.550 6.198 5.87 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.5147.4696.623 6.259 5.92 Period 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.6497.562 6.687 6.312 5.97 Period 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.2019.442 8.772 7.6456.743 6.359 6.01 Period 23 20.45618.292 16.444 14.857 13.489 12.303 11.272 10.371 9.5808.883 7.718 6.792 6.399 > n 570 n nog 6.04 Print Done Print Done olve this Demodocs example Get more help Clear all Check answ