(present value $1)

(present value of ordinary annuity $1)

Use the NPV method to determine whether Rouse Products should invest in the followng projects: - Project A: Costs $290,000 and olfers seven annual net cash inflows of $54,000. Rouse Products requires an annual return of 14% on investments of this nature - Project B Costs $390,000 and offers 10 annual net cash infows of 577,000 . Rouse Products demands an annual return of 1246 on investments of this nature (Click the icon to view Present value of 31 table) (Cick the icon to view Prosent Value of Ordinary Annity of 51 table.) Read the feguirements. 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: Reference Reference Reference Reference Requirement 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places minus sign for a negative net present value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A Use the NPV method to determine whether Rouse Products should invest in the followng projects: - Project A: Costs $290,000 and olfers seven annual net cash inflows of $54,000. Rouse Products requires an annual return of 14% on investments of this nature - Project B Costs $390,000 and offers 10 annual net cash infows of 577,000 . Rouse Products demands an annual return of 1246 on investments of this nature (Click the icon to view Present value of 31 table) (Cick the icon to view Prosent Value of Ordinary Annity of 51 table.) Read the feguirements. 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: Reference Reference Reference Reference Requirement 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places minus sign for a negative net present value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A