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E26-24 & E26-25 please show calculations, thank you E26-24 Using NPV and profitability index to make capital investment decisions Use the NPV method to determine

E26-24 & E26-25
please show calculations, thank you image text in transcribed
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E26-24 Using NPV and profitability index to make capital investment decisions Use the NPV method to determine whether Juda Products should invest in the following projects: Project A: Costs $290,000 and offers seven annual net cash inflows of $57,000. Juda Products requires an annual return of 14% on investments of this nature. Project B: Costs $395,000 and offers 10 annual net cash inflows of $70,000. Juda Products demands an annual return of 12% on investments of this nature. Requirements 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. 2. What is the maximum acceptable price to pay for each project? 3. What is the profitability index of each project: Round to two decimal places. E26-25 Using IRR to make capital investment decisions Refer to the data regarding Juda Products in Exercise E26-24. Compute the IRR of each project, and use this information to identify the better investment

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