Question Help Use the NPV method to determine whether White Products should invest in the following projects Proyed A Costs 5250,000 and offers seven annual net cash flows of $54.000 White Products requires an annual rum of 125 on investments of this nature Project Costs 5400.000 and offers 9 anal e cash flows of 572,000. White Products demands an annual return of 10% on investments of this nature Click the icon to view Present Value of table) Click the icon to view Present Value of Ordinary Annulty of S1 table) Read the rements Requirement 1. What is the NPV of each project? Assumerelhor project has a residual value. Round to two decimal places (Enter any factor amounts to these decimal places Xxxx Use parentheses or a minus sign for a negative not present) Cadulate the NPV int present value of each project begin by calculating the NPV of Project Project Net Cash Annuity PV Factor Present Years Inflow Value 1.7 Palue of any 0 Nepal En any number in the end hence Check (Click the icon to view Present Value of Urdinary Annuity * Requirements cimal either pr by calcul 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 Annuil Print Done Reference . Present Value of $1 Periods 6% 7% 1 2 3 4 5 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 5% 0.952 0.907 0.864 0.823 0.784 0.943 0.890 0.840 0.792 0.747 8% 0.926 0.857 0.794 0.735 0.681 9% 0.917 0.842 0.772 0.708 0.650 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 15% 0.870 0.756 0.658 0.572 0.497 16% 0.862 0.743 0641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 20% 0.833 0.694 0.579 0.482 0.402 0.935 0.873 0.816 0.763 0.713 0.666 0.623 0.582 0.544 0.508 6 7 8 9 10 0.942 0.933 0.923 0.914 0.905 0.888 0.871 0.853 0.837 0.820 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.630 0.583 0.540 0.500 0.463 0.596 0.547 0.502 0.460 0.422 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.432 0.376 0.327 0284 0.247 0.410 0.354 0.305 0.263 0227 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.475 11 12 13 14 15 0.896 0.887 0.879 0.870 0.861 0.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0601 0.577 0.555 0.585 0.557 0.530 0.505 0481 0.527 0.497 0469 0.442 0417 0.415 0388 0.362 0.429 0 397 0.368 0.340 0.315 0.388 0.356 0.326 0299 0 275 0.350 0.319 0.290 0.263 0.239 0.287 0.257 0.229 0.205 0.183 0.237 0.208 0.182 0.160 0.140 0.215 0.187 0.163 0.141 0.123 0.107 0.093 0.196 0.168 0.145 0.125 0.108 16 17 0.853 0944 0.729 0.714 0.623 0.605 0.534 0.513 0.458 0.436 0.394 0.371 0.339 0.317 0.292 0.270 0.252 0.231 0.218 0.198 0.163 0 146 0.123 0.108 0.093 0.080 0.071 0.060 0.054 0.045 Print Done Reference Periods % 1 1 2 3 4 12% 0.893 1.690 2402 3.037 3605 14% 0.877 1.647 2322 2914 3.433 paren ch 5 of el 6 7 8 9 10 Present Value of Ordinary Annuity of $1 1% 2% 3% 5% 6% 7% 8% 9% 10% 0.990 0980 0.971 0.962 0952 0.943 0.935 0.926 0917 0.909 1.970 1.942 1.913 1 896 1859 1.833 1 808 1.783 1,759 1.736 2.941 2884 2.829 2775 2723 2673 2624 2577 2531 2487 3.902 3.808 3.717 3.630 3.546 3.465 3387 3312 3240 3.170 4.853 4713 4.580 4.452 4329 4212 4.100 3993 3.890 3.791 5.795 5601 5.417 5.242 5,076 4917 4.767 4.623 4.486 4355 6.728 6.472 6.230 6.002 5.786 5582 5389 5 206 5033 4868 7.652 7325 7.020 6.733 6.463 6210 5.971 5.747 5.535 5.335 8.556 8.162 7.786 7435 7.108 6802 6.515 6.247 5.995 5.759 9.471 8.983 8530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 10.368 9.787 9253 8.750 8.306 7887 7499 7.139 6805 6.495 11 255 10.575 9.954 9385 8.863 8384 7943 7.536 7.161 6.814 12.134 11 348 10.6359.986 9394 8853 8.358 7.904 7.487 7 103 1300412.106 11,296 10.563 9.899 9.295 8.745 8.244 7.786 7367 13.865 12 849 11.938 11.118 10,3809712 9.108 8.559 8.061 7606 14718 13.58 12.561 11 652 10.838 10.106 9447 8851 8.313 7324 1556214 292 13.105121061127410477 9763 9.122 85448022 4.111 4.564 4.968 5.328 6,650 5938 6.194 6.424 6.628 6.811 6.974 7120 11 12 13 14 15 15% 16% 18% 20% 0.870 0.862 0.847 0.833 1625 1.605 1.566 1.528 2283 2246 2174 2106 2855 2798 2690 2589 3.352 3.274 3.127 2991 3.784 3685 3.498 3.326 4.160 4.039 3.812 3.605 4.487 4344 4.078 3.837 4.772 4.607 4303 4031 5,019 4833 4494 4.192 5.234 5029 4.656 4.327 5421 5.197 4.793 4.439 5.583 5342 4910 4533 5.724 5.468 5008 4.611 5.847 5.575 5092 4675 5954 5.669 5.162 4.730 6047 6.749 5222 4.775 3.889 4.288 4.639 4.946 5.216 5.453 5660 5.842 6002 6.142 6.265 Ject A 18 17 6373 Sandt Print Done
