PLEASE SHOW ALL WORK

F26-25 leimilar to) Question MyAccountingLab Homework Use the NPV method to determine whether Smith Products should invest in the following projects: Project A: Costs $275,000 and offers eight annual net cash inflows of $54,000. Smith Products requires an annual return of 14% on investments of this nature. Project B: Costs $385,000 and offers 10 annual net cash inflows of $77,000. Smith Products demands an annual return of 12% on investments of this nature. (Click the icon to view Present Value of $1 table.) KClick the icon to view Present Value of Ordinary Annuity of $1 table.) O Read the requirements. Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A: Net Cash Annuity PV Factor Present Years Inflow (i=14%, n=8) Value 1-8 Present value of annuity 0 Investment Net present value of Project A Enter any number in the edit fields and then click Check Answer. Present Value of $1 Periods 1 2 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 5% 0.952 0.907 0.864 0.823 0.784 6% 0.943 0.890 0.840 0.792 0.747 7% 0.935 0.873 0.816 0.763 0.713 8% 0.926 0.857 0.794 0.735 0.681 9% 0.917 0.842 0.772 0.708 0.650 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 15% 0.870 0.756 0.658 0.572 0.497 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 20% 0.833 0.694 0.579 0.482 0.402 3 4 5 6 7 8 9 10 0.942 0.933 0.923 0.914 0.905 0.888 0.871 0.853 0.837 0.820 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.666 0.623 0.582 0.544 0.508 0.630 0.583 0.540 0.500 0.463 0.596 0.547 0.502 0.460 0.422 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.432 0.376 0.327 0.284 0.247 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 0.335 0.279 0.233 0.194 0.162 11 12 13 14 0.896 0.887 0.879 0870 0.804 0.788 0.773 0 758 0.722 0.701 0.681 0.661 0.650 0.625 0.601 0.577 0.585 0.557 0.530 0.505 0.527 0.497 0.469 0442 0.475 0.444 0.415 0388 0.429 0.397 0.368 0.340 0.388 0.356 0.326 0 299 0.350 0.319 0.290 0.263 0.287 0.257 0.229 0 205 0.237 0.208 0.182 0 160 0.215 0.187 0.163 0 141 0.195 0.168 0.145 0 125 0.162 0.137 0.116 0 099 0.135 0.112 0.093 0 078 Periods 1% 3% 5% 1 2 3 4 5 0.990 1.970 2.941 3.902 4.853 2% 0.980 1.942 2.884 3.808 4.713 0.971 1.913 2.829 3.717 4.580 4% 0.962 1.886 2.775 3.630 4.452 0.952 1.859 2.723 3.546 4.329 Present Value of Ordinary Annuity of $1 6% 7% 8% 9% 10% 0.943 0.935 0.926 0.917 0.909 1.833 1.808 1.783 1.759 1.736 2.673 2.624 2.577 2.531 2.487 3.465 3.387 3.312 3.240 3.170 4.212 4.100 3.993 3.890 3.791 12% 0.893 1.690 2.402 3.037 3.605 14% 0.877 1.647 2.322 2.914 3.433 15% 0.870 1.626 2.283 2.855 3.352 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 6 7 8 9 10 5.795 6.728 7.652 8.566 9.471 5.601 6.472 7.325 8.162 8.983 5.417 6.230 7.020 7.786 8.530 5.242 6.002 6.733 7.435 8.111 5.076 5.786 6.463 7.108 7.722 4.917 5.582 6.210 6.802 7.360 4.767 5.389 5.971 6.515 7.024 4.623 5.206 5.747 6.247 6.710 4.486 5.033 5.535 5.995 6.418 4.355 4.868 5.335 5.759 6.145 4.111 4.564 4.968 5.328 5.650 3.889 4.288 4.639 4.946 5.216 3.784 4.160 4.487 4.772 5.019 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 11 12 13 10.368 11.255 12.134 9.787 10.575 11.348 9.253 9.954 10.635 8.760 9.385 9.986 10 502 8.306 8.863 9.394 7.887 8.384 8.853 7.499 7.943 8.358 7.139 7.536 7.904 6.805 7.161 7.487 6.495 6.814 7.103 7 207 5.938 6.194 6.424 5.453 5.660 5.842 ann 5.234 5.421 5.583 5.029 5.197 5.342 ERO 4.656 4.793 4.910 4.327 4.439 4.533 14 420 42AC 11 00 Ooon 000 0 715 7 700 724 Enno A0441 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