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- nature Use the NPV method to determine whether Stenback Products should invest in the following projects Project A Costs $265.000 and offers seven annual

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- nature Use the NPV method to determine whether Stenback Products should invest in the following projects Project A Costs $265.000 and offers seven annual net cash intlows of $52,000 Stenback Products requires an annual return of 12% on investments of this Project 8 costs $400,000 and offers 9 annual net cash inflows of $72,000 Stenback Products demands an annual return of 10% on investments of this natu Click the icon to view Present Value of 51 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table) Read the requirements UDUT VULPUU Requirement 2. What is the maximum acceptable price to pay for each project? Maximum Acceptable Price Project Project B Enter any number in the edit fields and then click Check Answer 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, Print Done 9% Periods 1% 2% 3% 4% 5% 6% 7% 8% 10% 129 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 1.970 1.942 1.913 1.836 1859 1833 1808 1.783 1759 1736 1.690 1647 1.626 1.605 1.566 1.528 Period 3 2941 2 8842829 2.775 2723 2.673 2624 2577 2.531 2.487 2.402 2.322 2283 2246 2.174 2.106 Period 4 3.902 3.808 3.717 3630 3.546 3.465 3.387 3.3123.240 3.170 3.037 2.914 2.856 2.798 2.690 2.589 Period 5 4.853 4.713 4580 4.452 4.329 4212 4.100 3.9933.890 3.791 3.60 3.433 3.352 3274 3.127 2991 Period 6 5,795 5.6015417 5.242 5.076 4917 4.767 4.623 4.486 4.355 4.1113.8893.784 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 6.033 4.8694.5544288 4. 160 4.039 3.812 3.605 Period 8 7.652 7.325 7020 6,733 6.463 6.210 5.971 5.7475.635 6.335 4.968 4.6394.487 4,344 4.078 3.837 Period 9 8.568 8.162 7786 7.435 7 108 6.802 6 515 6.2476.995 5.7596.328 4.94647724.607 43034031 Period 10 9.471 8.983 8.530 8.111 7.72273607.0246.710 6.418 6.145 5.6505.216 5 019 4833 4.4944 192 Period 11 10.368 9.787 9253 8.760 8.306 7.8877499 7 139 6.806 6.495 5.938 5.463 5234 5.029 4.656 4.327 Period 12 11.255 10.575 9.954 9 385 8.863 8.384 7943 7536 7.161 6814 6.194 5.660 5.421 5.197 4.793 4.439 Period 13 12. 134 11.348 10.635 9.986 9.394 8,853 8.358 7.904 7.487 7. 103 6.424 5.8425,583 5.342 | 4.910 4.533 1 Present Value of $1 Periods 1% 296 3% 4% 5% 6% 7% 8% 9% 10% 12% 149 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0 9520.943 0.935 0.926 09170 909 0.8930 877 0.870 10.8620 847 0.833 Period 2 0.980 0961 0.943 0.925 0.907 0.890 0.873 0.8570.842 0.826 0.7970.769 0.750 0.743 0.7180 694 Period 3 0.971 0.942 0915 0.88908640.840 0.816 0.7940.772 0.7510712 0.675 0.658 0.6410.609 0.579 Period 4 0.961 0.9240.888 0 855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.5020.572 0.5520.516 0.482 Period 5 0.951 0 906 0.863 0822 07840747 0713 0.681 0.65006210.567 0.519 0497 0476 0.437 0.402 Period 6 0.942 0888 0.8370790 0.746 0.7050 666 0.630 0.596 0.5640.5070456 0.4320 4100.370 0.335 Period 7 0 933 0871 0.813 0.750 0.7110.6650623 0.58305470.513 0.452 0.400 0376 0.354 0.3540.279 Periods 0.923 0 853 0789 0.731 0.677 0.5270582 0.540 0.502 0.467 0.4040361 03270. 3050 266 0233 Period 9 0914 0.837 0.756 07030645 0.592 0544 0.500 0.460 04240361 0.308 02840 2630 225 0.194 Period 10 0905 0.820 0.744 0676061405680.500 0.4630422 0.396 03220270 0.2470227 0.191 0.162 Period 11 0.896 0.8040.722 0.650 0.585 0.527 0.4750429 0.388 0.3500 287 0.2370215 0.1950.162 0.135 Period 12 0 887 0.788070106250 557 0.4970444 0.3970356 0.3190 257 0208 0.1870,168 0.137 0.112 Period 13 0.879 0.773 06810 601 0530 0.46904150368 0.32602900229 0.182 0.163 0.146 0.116 0.093

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