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please show and explain the work. Thanks! . Use the NPV method to determine whether Rouse Products should invest in the following projects: Project A
please show and explain the work. Thanks!
. Use the NPV method to determine whether Rouse Products should invest in the following projects: Project A costs $260,000 and offers eight annual net cash inflows of $58,000. Rouse Products requires an annual return of 16% on projects like A. Project B costs $390,000 and offers ten annual net cash inflows of $66,000. Rouse Products demands an annual return of 10% on investments of this nature. (Click the icon to view the present value annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) (Click the icon to view the future value table.) Requirement What is the NPV of each project? What is the maximum acceptable price to pay for each project? Calculate the NPV of each project. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV of Project A is 1 Reference Reference Present Value of $1 Present Value of Annuity of $1 2 16% Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 0.990 1.970 2.941 3.902 4.853 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 | 2.798 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 18% 20% 0.847 0.833 1.566 1.528 2.174 2.106 2.690 2.589 3.127 2.991 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 6% 0.990 0.980 0.971 0.962 0.952 0.943 0.980 0.961 0.943 0.925 0.907 0.890 0.971 0.942 0.915 0.889 0.864 0.840 0.961 0.924 0.888 0.855 0.823 0.792 0.951 0.906 0.863 0.822 0.784 0.747 8% 0.926 0.857 0.794 0.735 0.681 10% 12% 14% 0.909 0.893 0.877 0.826 0.797 0.769 0.751 0.712 0.675 0.683 0.636 0.592 0.621 0.567 0.519 18% 0.862 0.847 0.743 0.718 0.641 0.609 0.552 0.516 0.476 0.437 20% 0.833 0.694 0.579 0.482 0.402 Period 6 Period 7 Period 8 Period 9 Period 10 5.795 6.728 7.652 8.566 9.471 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.8893.685 3.498 3.326 6.472 6.230 6.002 5.786 5.5825.206 4.868 4.564 4.288 4.039 3.812 3.605 7.325 | 7.0206.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 8.1627.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.6505.216 4.833 4.494 4.192 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.564 0.513 0.467 0.424 0.386 0.507 0.456 0.452 0.400 0.404 0.351 0.361 0.308 0.322 0.270 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 Period 11 10.368 9.787 9.2538.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 Period 12 | 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 Period 13 12.134 | 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.3676.628 6.002 5.468 Period 15 | 13.865 12.849 11.938 11.118 10.380 9.7128.559 7.606 6.811 6.142 5.575 4.656 4.327 4.793 4.439 4.910 4.533 5.008 4.611 5.092 4.675 Period 110.896 0.8040.722 0.650 0.585 Period 12 0.887 0.788 0.701 0.625 0.557 Period 13 0.879 0.773 0.681 0.601 0.530 Period 14 0.870 0.758 0.661 0.577 0.505 Period 15 0.861 0.743 0.642 0.555 0.481 0.527 0.497 0.469 0.442 0.417 0.429 0.350 0.287 0.237 0.397 0.319 0.257 0.208 0.368 0.290 0.229 0.182 0.340 0.263 0.205 0.160 0.315 0.239 0.183 0.140 0.195 0.168 0.145 0.125 0.108 0.162 0.135 0.137 0.112 0.116 0.093 0.099 0.078 0.084 0.065 5.353 Period 2018.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 Period 40 32835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 5.929 6.097 6.177 6.233 5.467 5.517 4.870 4.948 4.979 4.997 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.073 0.038 0.020 0.005 0.051 0.024 0.012 0.003 0.037 0.016 0.007 0.001 0.026 0.010 0.004 0.001 5.548 Print Done Print Done Reference Reference Future Value of Annuity of $1 6% 1.000 Future Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.000 2.010 3.030 4.060 5.101 2% 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 5% 1.000 2.050 3.153 4.310 5.526 8% 1.000 2.080 3.246 4.506 5.867 2.060 3.184 4.375 5.637 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 20% 1.000 2.200 3.640 5.368 7.442 6% Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.010 1.020 1.030 10% 1.100 1.210 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 1.331 1.464 1.041 1.051 1.126 1.159 Period 6 Period 7 Period 8 Period 9 Period 10 1.611 6.152 6.308 6.468 6.633 6.802 6.975 7.214 7.434 7.662 7.898 8.142 8.394 8.286 8.583 8.892 9.214 9.549 9.897 9.369 9.755 10.159 10.583 11.027 11.491 10.462 10.950 11.464 12.006 12.578 13.181 7.336 7.716 8.923 9.487 10.637 11.436 12.488 13.579 14.48715.937 8.977 11.414 14.240 17.519 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 21.321 Period 6 Period 7 Period 8 Period 9 Period 10 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 Period 11 Period 12 Period 13 Period 14 Period 15 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 14.947 15.974 17.086 18.292 | 19.599 21.015 24.215 27.975 32.393 16.09717.29318.599 20.024 21.579 23.276 27.152 31.772 37.280 23.045 27.271 32.089 37.581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 Period 11 Period 12 Period 13 Period 14 Period 15 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2.079 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 5.743 10.06317.449 29.960 50.950 85.850 143.371 237.376 10.286 21.725 45.259 93.051 188.884 378.721 750.378|1,469.772 Period 20 Period 25 Period 30 Period 40 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 | 72.052 91.025 115.380 146.628 186.688 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 34.785 40.568 47.575 56.085 | 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.2137,343.858 Period 20 Period 25 Period 30 Period 40 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040Step by Step Solution
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