K Use the NPV method to determine whether White Products should invest in the following projects: Project A Costs $275,000 and offers seven annual net cash inflows of $57,000. White Products requires an annual return of 12% on investments of this nature . Project B. Costs $385,000 and offers 10 annual net cash inflows of $77,000. White Products demands an annual return of 10% on investments of this nature. (Click the icon to view Present Value of $1 table.) Annuity of $1 table) Read the requirements Project A: Years 1-7 Present value of annuity 0 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, X.XXX 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 Etext pages Investment Net present value of Project A ***** Get more help - (Click the icon to view Present Value of Ordinary Net Cash Inflow Annuity PV Factor (i=12%, n=7) Clear all Present Value

Use the NPV method to determine whether White Products should invest in the following projects: - Project A Costs $275,000 and offers seven annual net cash inflows of $57,000. White Products requires an annual return of 12% on investments of this nature. - Project B Costs $385,000 and offers 10 annual net cash inflows of $77,000. 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 Reference 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 ezch project? Round to two decimal places Reference