K 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 $58,000. Vargas Products requires an annual return of 14% on projects like A. Project B costs $380,000 and offers nine annual net cash inflows of $68,000. Vargas Products demands an annual return of 12% on investments of this nature. (Click the icon to view the present value annuity tble.) (Click the icon to view the future value annuity table.) Requirement (Click the icon to view the present value table.) (Click the icon to view the future value table.) 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 A is rence Present Value of Annuity of $1 emen the N Periods Period 3 Period 4 1% Period 1 0.990 Period 2 1.970 2.941 2% 3% 4% 0.980 0.971 0.962 5% 6% 8% 10% 12% 0.952 0.943 0.926 0.909 0.893 14% 16% 18% 20% 0.877 0.862 0.847 0.833 3.902 Period 5 4.853 1.942 1.913 1.886 2.884 2.829 2.775 3.808 3.717 3.630 3.546 3.465 4.713 4.580 4.452 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 ate the sent values.) Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 Period 7 6.728 5.582 PV of l Period 8 7.652 6.210 6.472 6.230 6.002 5.786 7.325 7.020 6.733 6.463 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 6.177 5.548 4.997 5.206 4.868 4.564 4.288 4.039 3.812 3.605 5.747 5.335 4.968 4.639 4.344 4.078 3.837 4.946 4.607 4.303 4.031 5.216 4.833 4.494 4.192 5.029 4.656 4.327 5.197 4.793 4.439 5.342 4.910 4.533 6.002 5.468 5.008 4.611 6.142 5.575 5.092 4.675 6.623 5.929 5.353 4.870 6.873 6.097 5.467 4.948 5.517 4.979 he en N Periods Period 1 Period 2 1% 2% 3% 0.990 4% 0.980 0.971 0.962 0.980 0.961 5% 0.952 0.943 0.925 0.907 Period 3 0.971 0.942 0.915 0.889 Period 4 0.961 0.924 0.888 0.855 Period 5 0.951 0.906 0.863 0.822 the Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 Present Value of $1 10% 18% 20% 6% 8% 12% 14% 16% 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.456 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 of Period 8 0.923 0.853 0.789 0.731 Period 9 0.914 0.837 0.766 Period 10 0.905 0.820 0.744 0.676 0.614 Period 11 0.896 0.804 0.722 Period 12 0.887 0.788 0.701 0.625 Period 13 0.879 0.773 0.681 Period 14 0.870 0.758 0.661 Period 15 0.861 0.743 0.642 0.577 0.505 0.442 0.555 0.481 0.417 Period 20 0.820 Period 25 0.780 Period 30 0.742 Period 40 0.672 0.673 0.554 0.456 0.610 0.478 0.375 0.552 0.412 0.308 0.453 0.307 0.208 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 sent values.) Future Value of Annuity of $1 Requ What Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 11 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2010 2.020 2030 2.040 2.050 2060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6877 7.154 7.442 Calcu ues.) Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 Period 7 7.214 7.662 7.898 8.142 8.394 The Period 8 9.897 Period 9 8.923 9.487 10.089 7.434 8.286 8.583 8.892 9.214 10.637 11.436 12.300 9.549 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 Period 10 10.462 10,950 11.464 12.006 12.578 13.181 1487 15.937 17.549 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 Period 12 12. 683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32 393 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 115.380 146.628 186.688 Period 20 22 019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 Period 25 28 243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.9811 Period 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 Period 40 48.886 60.402 75.401 95 026 120.800 154.762 259.057 442 593 767.091 1,342.025 2,360.757 4,163.213 7.343.858 10.730 11.414 12.142 12.916 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 23.045 25.733 28.755 32.150 27.271 30.850 34.931 39.581 32.089 36.786 42.219 48.497 37.581 43672 50.818 59.196 43.842 51.660 60.965 72.035 91.025 Proje I Proje bents of this nature. Reference (Cli (Cli Future Value of $1 Require What is Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.010 1.020 1.050 Period 2 1.020 1.040 Period 3 1.030 1.061 1.030 1.040 1.103 1.124 1.061 1.082 1.260 1.191 1.158 1.093 1.125 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.331 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.082 1.126 1.170 1.216 1.262 1.464 1.360 1.574 1.689 1.811 1.939 2.074 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2288 2488 Calculat values.) Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.966 The NP Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 Period 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 Period 9 1.094 1.195 1.305 Period 10 1.105 1.219 1.344 1.423 1.551 1.689 1.480 1.629 1.791 1.999 2.358 2.773 2.159 2.594 3.252 3.803 4.435 5.160 3.106 3.707 4.411 5.234 6.192 Period 11 1.116 1.243 1.384 Period 12 1.127 1.268 1.426 1.539 1.710 1.601 1.796 2012 2518 3.138 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 3.896 4.818 5.936 7.288 8.916 Period 13 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 Period 14 1.149 1319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 Period 15 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 3.207 Period 20 1.220 1.486 1.806 2.191 2653 4.661 6.727 9.646 13.743 19.461 27.393 38.338 Period 25 1.282 1.641 2.094 2.606 3.386 4.292 6.848 10.835 17 000 26.462 40.874 62.669 95.396 Period 30 1.348 1.811 2.427 3.243 4.322 5.743 10.063 17.449 29.960 50 950 85.850 143.371 237.376 Period 40 1.489 2.208 3.262 4.801 7.040 10.286 21.725 45.259 93.051 188 854 378.721 750.378 1,469.772 Print Done