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Help Please!!! Use the NPV method to determine whether White Products should invest in the following projects: Project A: Costs $265,000 and offers seven annual

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Help Please!!!

Use the NPV method to determine whether White Products should invest in the following projects: Project A: Costs $265,000 and offers seven annual net cash inflows of $54,000. White Products requires an annual return of 12% on investments of this nature. Project B: Costs $400,000 and offers 10 annual net cash inflows of $76,000. White Products demands an annual return of 10% 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 $1 table.) Read the requirements. 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, XXXX. Use parentheses or a minus sign for a negative net present value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Present Project A Years Net Cash Inflow Annuity PV Factor (i=12%, n=7) Value 1-7 Present value of annuity 0 Investment Net present value of Project A Calculate the NPV of Project B. Net Cash Present Project B: Years 1 - 10 Present value of annuity Annuity PV Factor (i=10%, n=10) Inflow Value 0 Investment Net present value of Project B Requirement 2. What is the maximum acceptable price to pay for each project? Maximum Acceptable Price Project A Project B Requirement 3. What is the profitability index of each project? (Round to two decimal places, X.XX.) Select the formula, then enter the amounts to calculate the profitability index of each project. Profitability Index Project A 1 Project B - X 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. Print Done Reference 15% 16 0.8700 1.626 10 2 283 22 2 855 27 3 352 32 5389 3.78436 4 160 4.4 4.487 4.772 46 40 5.019 Present Value of Ordinary Annuity of $1 Penods 1% 2% 3% 4% 5% 6% 7% 8% 1 0.990 9% 10% 12% 0.980 0.971 14% 0.962 0952 0943 0935 0926 2 0917 0.909 1970 1.942 0.893 0877 1.913 1.886 1 859 1.833 1.808 3 1.783 1.759 2941 1.736 1.690 1 647 2884 2829 2775 2723 2673 2624 2577 2531 4 2.402 3.902 3808 2.487 2322 3.717 3630 3546 3.465 3387 3312 3240 5 4853 3170 3037 2.914 4713 4.580 4.452 4.329 4212 4.100 3.993 3.890 3791 3 605 3433 6 5.795 5.601 5.417 5242 5.076 4917 4.767 4623 4.486 4355 7 6.728 4.111 3 889 6.472 6230 6002 5.786 5.582 5 206 5.033 4 868 4.564 8 4 288 7.652 7.325 7020 6.733 6.463 6210 5971 5 747 5535 5.335 4.968 9 8566 4.639 8.162 7 786 7435 7 108 6 802 6.515 6 247 5.995 5.759 5328 4.946 10 9.471 8 983 8.530 8. 111 7.722 7360 7024 6710 6.418 6.145 5.6505216 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 12 11 255 10.575 9 954 9.385 8 863 8.384 7.943 7.536 7 161 6.814 6 194 5.660 13 12.134 11 348 10 635 9986 9394 8.853 8 358 7.904 7 487 7 103 6424 5.842 14 13.004 12 106 11 296 10.563 9.899 9 295 8.745 8 244 7.786 7367 6.628 6 002 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 16 14 718 13.578 12 561 11.652 10 838 10 106 9.447 8 851 8.313 7824 6 974 6265 17 15 562 14.292 13.166 12 166 11 274 10.477 9.763 9.122 8.544 8022 7. 120 6.373 18 16 398 14.992 13.754 12.659 11690 10.828 10.059 9.372 8.756 8201 7.250 6.467 19 17 226 15.678 14.324 13.134 12085 11.158 10.336 9.604 8.950 8 365 7366 6.550 20 18.046 16.351 14 877 13 590 12.462 11.470 10 594 9818 9.129 8.514 7.469 6 623 21 18 857 17 011 15 415 14.029 12 821 11.764 10.836 10.017 9.292 8649 7 562 6.687 22 19 660 17 658 15.937 14.451 13.163 12.042 11.061 10 201 9.442 8.772 7645 6.743 23 20 456 18 292 16 444 14 857 13.489 12 303 11 272 10.371 9.580 8 883 7.718 6.792 24 21 243 18.914 16.936 15 247 13.799 12 550 11 469 10.529 9.707 8 985 7.784 6.835 25 22 023 19.523 17 413 15 622 14.094 12.783 11.654 10.675 9.823 9.077 7 843 6.873 26 22 795 20 121 17 877 15 983 14.375 13.003 11.826 10.810 9.929 9.161 7.896 6.906 27 23560 20.707 18.327 16.330 14.643 13 211 11.987 10.935 10.027 9237 7 943 6.935 28 24 316 21.281 18.764 16.663 14.898 13.406 12 137 11 051 10.116 9 307 7.984 6.961 29 25 066 21.844 19.188 16.984 15.141 13.591 12 278 11.158 10.198 9.370 8.022 6.983 30 25 808 22 396 19 600 17 292 15 372 13.765 12 409 11.258 10.274 9 427 8.055 7.003 5234 5.0 5 421 5 5 58353 5.724 54 5.8475 5 954 | 5.6 6.047 57 6.12858 6 1985 & 6.259 59 63125 6.359 6. 6.399 60 6.434 60 6.4646 6.491 6.514 6.534 6.551 6 566 6 6. 6. 6. 6. 40 8244 7 105 6.642 6.2 32.835 27 355 23.115 19.793 17 159 15 046 13.332 11.925 10.757 9.779 39 196 31.424 25.730 21.482 18 256 15.762 13.801 12233 10.962 9915 50 8 304 7.133 6 661 6 => nererence X RO pl 0747 0760 Present Value of $1 Perods 1% 2% 3% 4% 5% 6% 1 7% 0.990 0.980 0971 8% 9% 10% 0962 12% 0952 14% 15% 2 0.943 0 980 16 0.961 0935 0926 0.943 0917 0.925 0 909 0.907 0893 0890 0.877 0870 08 3 0.971 0.873 0942 0915 0 857 0.842 0826 0 889 0 864 0.797 0.769 0 840 0.756 07 4 0961 0924 0.816 0.794 0888 0.772 0751 0 855 0.712 0.675 0823 0.658 0.792 oc 5 0 951 0763 0735 0.906 0863 0708 0.683 0636 0.822 0.592 0.784 0572 03 0.713 0 681 0 650 0.621 0567 0.519 6 0497 0942 04 0 888 0837 0.790 0.746 0.705 7 0.933 0871 0 666 0630 0.596 0.564 0813 0507 0 456 0711 0432 04 0.665 8 0.623 0.583 0.923 0853 0547 0.513 0.789 0.452 0.400 0376 03 0.731 0.677 0.6270582 0540 0502 9 0.914 0.837 0467 0.766 0.404 0.703 0.645 0351 0.327 03 0592 0544 10 0500 0.905 0 820 0.460 0.424 0 361 0308 0.744 0284 02 0.676 0.614 0558 0508 0.463 0.422 0386 0322 0.270 0247 02 11 0896 0.804 0.722 0 650 0585 0527 0.475 0429 12 0388 0.350 0287 0.887 0.788 0.701 0.237 02150 0625 0557 0497 0.444 0397 0356 13 0319 0.257 0208 0 879 0773 0.187 01 0 681 0 601 0530 0.469 0.415 0.368 0.3260 290 0229 0 870 0.182 0.163 01 0.758 0.661 0577 0505 0442 0388 0340 0299 15 0.263 0205 0.160 0.141 0861 0 0.743 0.6420555 0.481 0.417 0 362 0.315 0 275 0239 0.183 0.140 0 16 0.853 0728 0623 0.534 0458 0 394 0339 0.292 0.252 0218 0.163 0 1230 107 17 0.844 0.714 0 605 0513 0.436 0371 0.317 0270 0231 0 198 0.146 0 108 0 093 0.6 18 0836 0.700 0.587 0494 0.416 0350 0296 0.250 0.212 0 1800 130 0.095 0.081 00 19 0828 0.686 0570 0.475 0.396 0 331 0277 0.232 0.194 0 164 0 116 0.083 0.070 00 20 0 820 0 673 0.554 0.456 0377 0.312 0258 0215 0.178 0.149 0.104 0.073 0.061 0.0 21 0811 0 660 0538 0.439 0359 0 294 0 242 0.199 0.1640.135 0093 0.064 0053 00 22 0803 0.647 0522 0422 0342 0278 0226 0.184 0.150 0.123 0.083 0056 0.046 0 0 23 0.795 0.634 0.507 0.406 03260 262 0211 0 170 0.138 0 112 0.074 0 049 0040 00 24 0788 0.622 0.492 0.390 0310 0.247 0.197 0.158 0.126 0.102 0.066 0.043 0.035 00 25 0 780 0610 0.478 0 375 0 295 0233 0 184 0.146 0.116 0.092 0.038 0.030 0.0 26 0.772 0598 0.464 0.361 0 281 0 220 0.172 0 135 0.106 0084 0.033 0.02606 27 0.764 0586 0 450 0 347 0.268 0207 0.161 0.125 0098 0.076 0.047 0.029 0.023 0.6 28 0.757 0.574 0.437 0333 0 255 0 196 0.150 0.116 0.090 0.069 0.042 0.026 0.020 06 29 0.749 0563 0.424 0321 0 243 0.185 0.141 0 107 0.082 0.063 0.037 0.022 0.017 0.C 30 0742 0552 0.412 0.308 0231 0.174 0.131 0 099 0.075 0.057 0.033 0020 0.015 06 40 0.672 0453 0307 0208 0.142 0097 0.067 0.046 0.032 0.0220 011 0.005 0.004 00 50 0.608 0372 0228 0 141 0.087 0 054 0.034 0021 0.013 0 009 0.003 0.001 0.001 00 0 123 0.059 0.053 Print Done

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