Requirements

What is the NPV of each project? Assume neither project has a residual value.

Round to two decimal places.

What is the maximum acceptable price to pay for each project?

What is the profitability index of each project? Round to two decimal places. Present Value of Ordinary Annuity of $$1$Periods quad S$1\%2\%3\%4\%$quad$4$quad$2+15\%6\%7\%$quad$8\%9\%$quad$10\%+1+1+112\%$quad$14\%$quad$15\%16\%$quad$18\%\%0\mathrm{.}9801\mathrm{.}1\mathrm{.}9421\mathrm{.}9131\mathrm{.}8861\mathrm{.}85918-181\mathrm{.}7591\mathrm{.}736990475662\mathrm{.}8842\mathrm{.}84\mathrm{.}714\mathrm{.}5804\mathrm{.}4524\mathrm{.}32942$quad$3\mathrm{.}893\mathrm{.}3\mathrm{.}6053\mathrm{.}4333\mathrm{.}33\mathrm{.}23\mathrm{.}12$rind $65\mathrm{.}795$quad$5\mathrm{.}6015\mathrm{.}417$quad$5\mathrm{.}2425\mathrm{.}0764\mathrm{.}9174\mathrm{.}767$quad$4\mathrm{.}623864\mathrm{.}3554\mathrm{.}111889|-2-2+2-1346853\mathrm{.}4982328\mathrm{.}162$quad$7\mathrm{.}787\mathrm{.}4357\mathrm{.}1086\mathrm{.}8-2-1-25\mathrm{.}759$quad$5\mathrm{.}3$quad$5$quad x quad$2439\mathrm{.}4718\mathrm{.}98$quad $-$ quad $-1-8\mathrm{.}5308\mathrm{.}1117\mathrm{.}7227\mathrm{.}36076\mathrm{.}7106\mathrm{.}4186\mathrm{.}1455\mathrm{.}6505\mathrm{.}2$quad x quad$2*504\mathrm{.}8334\mathrm{.}4944\mathrm{.}19$: quadriod $1110\mathrm{.}369\mathrm{.}7878760$quad$8\mathrm{.}3067\mathrm{.}8877\mathrm{.}4997\mathrm{.}1396\mathrm{.}8056\mathrm{.}5\mathrm{.}9385\mathrm{.}4535\mathrm{.}2345\mathrm{.}0294\mathrm{.}6564411\mathrm{.}34810\mathrm{.}63$quad$9\mathrm{.}9869\mathrm{.}3948\mathrm{.}8$quad$7\mathrm{.}4$quad$+$quad$-2+2+217\mathrm{.}10312106112-210\mathrm{.}5639\mathrm{.}899929-2=2$x$-23671513\mathrm{.}8651284911\mathrm{.}93811\mathrm{.}118109\mathrm{.}7129\mathrm{.}1083598\mathrm{.}0617\mathrm{.}6066\mathrm{.}8116\mathrm{.}14284//5\mathrm{.}5755\mathrm{.}0924\mathrm{.}06141312\mathrm{.}56313246\mathrm{.}974519621112\mathrm{.}46\mathrm{.}10\mathrm{.}5949\mathrm{.}1298\mathrm{.}514696\mathrm{.}6236\mathrm{.}2595\mathrm{.}9295\mathrm{.}353$eriod $2118\mathrm{.}85717\mathrm{.}01115\mathrm{.}41514\mathrm{.}02912110.|10017|929264075626\mathrm{.}687635\mathrm{.}973538148912\mathrm{.}19\mathrm{.}5217\mathrm{.}4115\mathrm{.}62214\mathrm{.}09412\mathrm{.}78\mathrm{.}11\mathrm{.}654675|9\mathrm{.}823|9\mathrm{.}0777\mathrm{.}8436\mathrm{.}86\mathrm{.}4646\mathrm{.}0975\mathrm{.}4674\mathrm{.}94820\mathrm{.}11715\mathrm{.}914\mathrm{.}7\mathrm{.}8966119\mathrm{.}6$T$.20\mathrm{.}016\mathrm{.}5665\mathrm{.}51740|32835|27\mathrm{.}35523\mathrm{.}11519\mathrm{.}79317\mathrm{.}15915\mathrm{.}04613\mathrm{.}33211\mathrm{.}925|10\mathrm{.}757|9\mathrm{.}7798\mathrm{.}2447\mathrm{.}1056\mathrm{.}6426\mathrm{.}2335\mathrm{.}5484\mathrm{.}99$eriod $5019831\mathrm{.}42425\mathrm{.}73021\mathrm{.}48210\mathrm{.}2$JO$15\mathrm{.}76213\mathrm{.}8012210\mathrm{.}9629\mathrm{.}9158\mathrm{.}304|7\mathrm{.}1336\mathrm{.}6616\mathrm{.}2465\mathrm{.}5544\mathrm{.}999$Use the NPV method to determine whether Emin Products should invest in the following projects:

Project A: Costs $$270,000$ and offers $7$ annual net cash inflows of $$61,000.$ Emln Products requires an annual return of $14\%$

on investments of this nature.

Project B: Costs $$340,000$ and offers $10$ annual net cash inflows of $$77,000.$ Emln Products demands an annual return of

$12\%$ on investments of this nature.

Read the requirements.

View Present Value of $$1$ table.

Present Value of Ordinary Annuity of $$1$ table.

Requirement $1.$ What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places.

$($Enter any factor amounts to three decimal places,

X$.$XXX$.$ Use parentheses or a 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$.$