Managerial Accounting Questions

E26-24 Using NPV and profitability index to make capital investment decisionsUse the NPV method to determine whether Kyler Products should invest in thefollowing projects: Learning Objective 4 1. Project B $16,200 NPV. Project A: Costs $260,000 and offers seven annual net cash inflows of $57,000.Kyler Products requires an annual return of 16% on investments of this nature.. Project B: Costs $375,000 and offers 10 annual net cash inflows of $75,000.Kyler Products demands an annual return of 14% on investments of this nature.Requirements1. 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.Note: Exercise E26-24 must be completed before attempting Exercise E26-25.E26-25 Using IRR to make capital investment decisionsRefer to the data regarding Kyler Products in Exercise E26-24. Compute the IRR Learning Objective 4 Project A l2% - 14% IRRor each project and use this information to identify the better investment