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9-25 Use the NPV method to determine whether Whee Products should invest in the following projects Project A Costs $260,000 and offers seven annual net

9-25
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Use the NPV method to determine whether Whee Products should invest in the following projects Project A Costs $260,000 and offers seven annual net cash inflows of 554.000Wyte Products requires an annual return of 14% on investments of this nature Project B:Coats 5390.000 and offers 10 annual net cash inflows of 572000, White Products demands an annual return of 12% on investments of this nature Click the icon to view Present Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of S1 table Road the guitaments Requirement 1. What is the NPV of each project? Assume neither project has a residual value Round to two decimal places (Enter any factor amounts to three decimal places, X.XXX Use parents or a minus sign for a negative not present Value) Calculate the NPV (net prosent value) of each project Begin by calculating the NPV of Project A Project A Net Cash Annuity PV Factor Present Years Inflow (114%, 17) Value 1- Present value of annuity 0 Investment Net present value of Project A Reference Present Value of Si Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 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 0.862 0.847 0.833 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 0.7430.7180.694 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 0.641 0.609 0.579 Period 4 10.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 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 0.476 0.437 0.402 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 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.7600.7110.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.5820.540 0.502 0.467 0.4040.351 0.327 0.305 0.266 0.233 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 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 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 0.1950.162 0.135 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 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.4690.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.1600.141 0.125 0.099 0.078 Period 15 10.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.1080.084 0.065 Period 16 (0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 (0.844 0.714 0.605 0.513 0.436 0.371 0.3170.270 0.231 0.1980.146 0.108 0.093 0.080 0.060 0.045 Period 18 0.836 0.7000.587 0.494 0.416 0.350 0.296 0.250 0.212 0.1800.130 0.095 0.081 0.069 0.051 0.038 Period 19 (0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 | 0.060 | 0.043 0.031 Period 20 0.820 0.673 0.5540.456 0.377 0.3120.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 OT Reference - Period 1 10.8960.804 T0.722 0.650 10:585 TOS27 0.475 0.429 0.38810.350 T0.287 0.237 0.215 10.1950.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.4440.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 Period 13 (0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.1820.163 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.2050.1600.141 0.125 0.099 0.078 Period 15 10.861 0.743 0.642 0.55 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0,065 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.3390.292 0.252 0.218 0.163 0.123 0.1070.093 0.071 0.054 Period 17 0.844 0.7140.605 0.313 0.436 0.371 0.317 0.270 0.231 0.1980.146 0.1080,093 0.080 0.060 0.045 Period 18 (0.836 0.700 0.587 0.494 0.4160.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.0690.051 0.038 Period 19 10.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.1940.164 0.116 0.083 0.070 0.060 0.043 0.031 Period 20 0.820 0.6730.5540.456 0.377 0.3120.2580.215 0.178 0.149 0.1040.073 0.061 0.051 0.037 0.026 Period 21 0.811 0.660 0.538 0.439 0.359 0.2940.242 0.199 0.1640.135 0.093 0.064 0.053 0.044 0.031 0.022 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0,018 Period 230.795 0.634 0.507 0.406 0.3260.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.1020.066 0.043 0.035 0.028 0.019 0.013 Period 25 10.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.0160.010 Period 26 0.772 0.598 0.464 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 Period 27 0.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.0290.0230.0180.0110.007 Period 28 0.757 0.574 0.437 0.333 0.250.1960.150 0.116 0.090 0.069 0.042 0.026 0.0200.0160.010 0,006 Period 29 0.7490.563 0.424 0.321 0.243 0.185 0.141 0.1070.0820.063 0.037 0.022 0.017 | 0.014 0.008 0.005 Period 30 0.742 0.5520.412 0.308 0.231 0.1740.131 0.099 0.075 0.057 0.033 0.020 0,015 0,012 0.007 0.004 Period 400.672 0.453 0.307 0.208 0.1420.097 0.067 0.046 0.032 0.022 0.0110.005 0.0040.003 0.001 0.001 Period 50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.021 0.0130.0090.003 0.001 0.001 0.001

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