Homework: Chapter 12 Homework Score: 0 of 10 pts 7 of 11 (11 complete) HW Score: 71.93%, 79.12 of 1 10 E12-27A (similar to) Question Help Use the NPV method to determine whether Root Products should invest in the following projects: * Project A costs $290,000 and offers seven annual net cash inflows of $65,000. Root Products requires an annual return of 14% on projects like A. * Project B costs $385,000 and offers ten annual net cash inflows of $74,000. Root Products demands an annual return of 12% 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 t (Click the icon to view the future value table.) What is the NPV of each project? What is the maximum acceptable price Calculate the NPV of each project. (Round your answers to the nearest The NPV of Project A is $ Reference Future Value of Annuity of $1 Periods 10% ,000 2.100 12% 1000 1000 2080 3 246 4.506 5.101 52045.3095.4165.526 5.637 5867 6.105 6353 6.610 68777.1547442 1.000 .000 2.060 3.153 3.184 4.375 1000 1.000 2020 3060 2.1802.200 .030 4.060 3374 4.779 .440 4.921 506 3.572 3640 5.2155.368 4.184 4.310 4.641 02 6.975 7.3367716 8.142 8.394 8536 8977 94429.930 9.4870.08910730 11.414 12142 12.916 6.152 | 6308 7.214 8.286 9.369 7.434 8.583 9.755 10.15910.583 11.027 11491 12488 1357914.776 16085 17.519 19086 20.799 7.662 8.892 9.214 8.923 9.549 9.897 10.637 11.436 12.30013233 14.240 15.327 16.499 1046210.95011464 12006 12578 13.18 14.487593717.549 19337 21.321 23.52 25.959 11.5712.1692B08 13.48 4.2074972 16.645 1853120.655 23045 25.73328755 32.150 12683 | 13.412 14 192 | 15.026 | 15.917 | 16.870 | 18.977 | 21384 | 24.133 27271 | 30.B50 34931 | 39581 13.80914.68015.618 16.627 7.713 18.882 21.49524523 28.029 32 089 36.786 4221948.497 14.9475.974 17.086 8.292 9.59 21.015 24.215 2797532.393 37581 43.67250818 59.196 16097 | 17.293 18599 | 20.024 21.579 | 23.276 | 27.152 | 31.772 | 37.280 | 43842 | 51.660 60965 | 72.035 22019 24.29726.870 29.778 33.06 36.786457625275 T2.052 91.025 5.380 146.628 186.6BB 2824332.030 38459 41.646 47.2754.885 73.106 98.347 133.334181.871 249.214 342.603 471.981 34.785 40.56847.575 56.085 66439 79.058 113.283 164.494 241.333356.787530.312 790.948 1,181882 48886 6040275495.026120800154.762 259,057 442593 767,091 1342.025 2,360757 4.163 213 7,343.858 Enter any number in the edit fields and then click Check Answer Homework: Chapter 12 Homework Score: 0 of 10 pts 7 of 11 (11 complete) HW Score: 71.93%, 79.12 of 110 pt E12-27A (similar to) EQuestion Help Use the NPV method to determine whether Root Products should invest in the following projects: Project A costs $290,000 and offers seven annual net cash inflows of $65.000. Root Products requires an annual return of 14% on projects like A. Project B costs $385,000 and offers ten annual net cash inflows of $74.000. Root Products demands an annual return of 12% 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 2) * What is the NPV of each project? What is the maximum acceptable price to Calculate the NPV of each project. (Round your answers to the nearestw The NPV of Project A is S Future Value of $1 1.020 .040 1.050 1.060 1040 1.061 08211031.124 1051 1.082 .126.1701216 1.200 1.440 1.728 689 1811 392.074 1.210 1.331 1254 300346 1392 405 1.030 1.041 .093 1260 1482 1.561 1.360 1 1051 04 115 1.2171276338 146 1617 1.925 2.100 2288 2488 1.062 1.126194 1.265 1 1072 10831721267 1369 1477 59 1094 1.105 2193441,480 629 1.116 243 1.384 1.5391.710 1.127 28 1.426 1.601 14191587 1.504 1.772 19742195 2.436 2.700 1.9492211 2.1442476 2853 3.278 3.759 4300 2358 1.230 1.316 2502 .826 3.185 1.305 1.423 1551 1.689 2.773 2159 25943.106 3.707 4.411 1.999 3.252 3.803 4.435 5.160 10 1.868233 2853 3.479 4.2265.117 6.176 12 13 14 15 20 25 3D 40 1.796 2.0122518 313838964818 5.936 7288 .916 1.13824 1.469 1.665 1886 2.133 2.720 3452 433 549 .886 8.59910.699 2937 1 1.149 13191513 1.732 1980 2.261 | 3797 | 4887 | 6261 | 7.988 | 10.14 1801 2079 2373 219126533.2074616727 1.346 1.558 3.172417754747138 9.266 11.974 15.407 6.727 9.646 13.743 19.461 27393 38.338 5.743 10.063 17449 29960 50.95085.850 143.371 237.376 1.220 | 1.486 | 1.806 | 2.191 1641 1.34B1811 2 208 282 2.094 2.666 3.386 4.29 6848 10.83517000 26.462 0.874 62.65995.396 11 2.4273.2434322 Enter any number in the edit fields and then click Check Answer. 1489 3.262 7.040 10.2 8 21.72545.25 93051 188.884 37B.721 750.371469.772 parts Reference Present Value of Annuity of $1 Periods | 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% 10.990 0.980 0.9710.962 0.950.943 0.926 0.909 0.893 0.8770.8620.8470.833 21.970 1.9421.913 1.886 1.8591.8331.7831.736 1.690 1.647 1.605 1.566 1.528 3 2.9412.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.1742.106 4 3.9023.8083.717 3.630 3.5463.465 3.312 3.170 3.037 2.914 2.7982.690 2.589 54.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.4333.2743.127 2.991 6 5.7955.601 5.417 5.242 5.076 4.917 4.623 4.355 4.1113.889 3.685 3.498 3.326 7 6.7286.472 6.230 6.002 5.7865.5825.2064.868 4.5644.2884.0393.812 3.605 87.6527.325 7.0206.733 6.463 6.210 5.7475.3354.9684.6394.344 4.078 3.837 98.5668.162 7.7867.4357.1086.802 6.2475.7595.3284.9464.6074.3034.031 10 9.4718.9838.530 8.111 7.722 7.360 6.710 6.145 5.6505.216 4.8334.4944.192 11 10.3689.7879.2538.7608.3067.887 7.139 6.4955.9385.4535.0294.6564.327 12 11.255 10.575 9.9549.385 8.863 8.384 7.536 6.814 6.1945.660 5.1974.7934.439 13 12.134 11.348 10.635 9.9869.3948.8537.9047.103 6.4245.842 5.342 4.910 4.533 14 13.004 12.106 11.296 10.563 9.8999.2958.2447.3676.628 6.002 5.468 5.0084.611 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.6235.9295.353 4.870 25 22.023 19.52317.413 15.622 14.094 12.783 10.675 9.0777.8436.873 6.0975.467 4.948 30 25.808 22.396 19.600 17.29215.372 13.76511.2589.427 8.055 7.003 6.177 5.517 4.979 4032.835 27.355 23.115 19.79317.159 15.046 11.925 9.7798.2447.1056.233 5.5484.997 PrintDone Reference Present Value of $1 Periods 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% 1 0.990 0.9800.971 0.9620.9520.9430.9260.909 0.8930.877 0.8620.8470.833 2 0.980 0.961 0.43 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 3 0.971 0.942 0.915 0.889 0.8640.840 0.7940.751 0.712 0.675 0.641 0.609 0.579 40.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 50.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 6 0.942 0.8880.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 7 0.9330.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.3540.314 0.279 80.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 90.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.2630.225 0.194 10 0.9050.820 0.7440.676 0.6140.5580.463 0.386 0.322 0.270 0.227 0.191 0.162 11 0.896 0.804 0.722 0.650 0.5850.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 13 0.879 0.773 0.6810.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 14 0.870 0.7580.6610.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.0990.078 15 0.861 0.7430.642 0.5550.481 0.417 0.315 0.2390.183 0.140 0.108 0.0840.065 20 0.820 0.673 0.5540.4560.377 0.312 0.215 0.149 0.1040.073 0.051 0.037 0.026 25 0.780 0.610 0.478 0.375 0.2950.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 30 0.742 0.5520.412 0.308 0.231 0.174 0.0990.057 0.033 0.020 0.012 0.007 0.004 40 0.6720.4530.3070.2080.142 0.0970.046 0.022 0.0110.0050.0030.0010.001 Print Done