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Homework: Chapter 12 Graded Homework Save Score: 0 of 5 pts 2 of 6 (2 complete) HW Score: 23.61%, 7.08 of 30 pts E12-27A (similar
Homework: Chapter 12 Graded Homework Save Score: 0 of 5 pts 2 of 6 (2 complete) HW Score: 23.61%, 7.08 of 30 pts E12-27A (similar to) 5 Question Help Use the NPV method to determine whether Vargas Products should invest in the following projects: Project A costs $270,000 and offers eight annual net cash inflows of $57,000. Vargas Products requires an annual return of 12% on projects like A. Project B costs $395,000 and offers nine annual net cash inflows of $73,000. Vargas Products demands an annual retum of 14% 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? Calculate the NPV of each project. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values. The NPV of Project Als S Enter any number in the edit fields and then click Check Answer. ? 3 parts remaining Clear All Check
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