MA Use the NPV method to determine whether Preston Products should invest in the following projects. Project A. Costs $270,000 and offers seven annual net cash inflows of $57,000. Preston Products requires an annual return of 14% on investments of this nature Project B. Costs $390,000 and offers 10 annual net cash inflows of $74,000. Preston Products demands an annual return of 12% 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 ann om Requirement 1. What is the NPV of each project? Assume other project has a residual valus. Round to two decimal places (Enter any factor amounts to three decimal places XXX Use parentheses or a minus sign for a negative nel present Value) Caciulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A Project Net Cash Annuity PV Factor Present Years Inflow (114%, 7) Value 1-7 Present value of annuity 0 Investment Net present value of Project place Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.9520.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1605 1.566 1.528 Period 3 2.9412.884 2.829 2.775 2.723 2.673 2624 2.577 2.531 2487 2402 2.322 2283 2246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 Period 5 4.8534.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.0764.917 4.767 4.623 4.4864.355 4.111 3.8893.7843.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.5644288 4.160 4.039 3.812 3.605 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.9715.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 Period 9 8.566 8.1627.786 74357.108 6.802 6.515 6.247 5.995 5.7595.328 4.94647724.607 4.3034031 Period 10 9.471 8.9838.530 8.111 7.722 7.360 7.0246.710 6.418 6.145 5.6505.216 5,019 4.833 4.494 4.192 Period 11 10.368 9.787 9.2538.760 8.306 7.8877499 7.139 6.805 6.495 5.938 5.463 5.234 5.0294,656 4.327 Period 12 11.255 10.575 9.954 9.385 8.8638.384 7.943 7.5367.1616.814 6.1945.660 5.421 5.1974.7934439 Period 13 12.134 11.348 10.635 9.986 9.3948.853 8.358 7.904 7.487 7.103 6.424 5.8425.583 5.342 4910 4,533 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.2447.786 7.3676.6286.002 5.7245.468 5.0084611 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.5598.061 7.606 6.811 6.1425,847 5.575 5.0924.675 Period 16 14.718 13.578 12.561 11.652 10.838 10.106) 9.4478.851 8.313 7.8246.9746.265 5.9545.669 5.1624.730 Period 17 15.562 14 292 13.166 12.166 11.274 10.4771 9.763 9.122 8.544 8.022 7.1206.373 6.047 5749 5.222 4.775 Print Done WU Wuyu WTV TEERIT wreck eference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.9070.890 0.873 0.857 0.8420.826 0.797 0.769 0.756 0.743 0.7180.694 Period 3 0.971 0.942 0.915 0.8890.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.6410.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.8230.792 0.763 0.735 0.708 0.683 0.636 0.5920.572 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.5190.497 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.4520.400 0.376 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 Period 11 10.896 0.8040.722 0.650 0.585 0.527 Period 12 0.887 0.788 0.701 0.625 0.5570.497 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 Period 16 0.853 0.7280.623 0.534 0.458 0.394 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.475 0.444 0.415 0.388 0.362 0.429 0.3880.350 0.287 0.237 0.215 0.195 0.162 0.135 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 0.270 0.231 0.1980.146 0.108 0.093 0.080 0.060 0.045 0.339 0.317