The NPV of project A is?

The NPV of project B is?

What is the maximum acceptable price to pay for project A and B?

Use the NPV method to determine whether Salon Products should invest in the following projects: Project A costs $275,000 and offers seven annual net cash inflows of $63,000. Salon Products requires an annual return of 14% on projects like A. Project B costs $390,000 and offers nine annual net cash inflows of $74,000. Salon Products demands an annual return of 12% 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? ence Reference 0.961 0.924 0.951 0.906 0.888 0.863 0.855 0.822 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.48 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.40 Period 4 Period 5 1.041 1.051 1.082 1.104 1.126 1.159 1.170 1.217 1.216 1.276 1.262 1.338 1.360 1.469 1.464 1.611 1.574 1.762 1.689 1.925 1.811 2.100 1.939 2.288 2.074 2.488 0.942 0.888 0.933 0.871 0.923 0.853 0.914 0.837 | 0.905 0.820 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.705 0.630 0.564 0.507 0.4560.410 0.370 0.33 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.27 0.677 0.627 0.540 0.467 0.4040.351 0.351 0.305 0.266 0.23 0.6450.5920.500 0.424 0.361 0.308 0.263 0.225 0.19 0.614 0.558 0.463 0.386 0.3220.270 0.227 0.1910.16 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 1.265 1.230 1.316 1.267 1.369 1.305 1.423 1.344 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.587 1.772 1.504 1.714 1.949 1.594 1.851 2.144 1.689 1.999 2.358 1.791 2.159 2.594 1.9742.195 2.211 2.502 2.476 2.853 2.773 3.252 3.106 3.707 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 1 10.896 0.804 20.887 0.788 3 0.879 0.773 40.8700.758 5 0.861 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0.601 0.577 0.555 0.585 0.527 0.429 0.350 0.287 0.237 0.1950.162 0.13 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.208 0.168 0.137 0.11 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.09 0.116 0.505 0.442 0.340 0.263 0.205 0.160 0.160 0.125 0.099 0.07 0.481 0.417 0.315 0.239 0.183 0.140 0.1080.084 0.06 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 1.898 2.332 2.012 2.518 2.133 2.720 2.261 2.937 2.397 3.172 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 5.117 5.936 6.886 7.988 9.266 6.176 7.288 8.599 10.147 11.974 7.430 8.916 10.699 12.839 15.407 0 0.820 0.673 0.554 0.456 0.377 0.3120.215 0.149 0.104 0.073 0.051 0.037 0.02 5 0.780 0.610 5 0.478 0.375 0.295 0.233 0.146 0.092 0.0590.038 0.024 0.0160.01 0 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.0200.012 0.007 0.00 | 0.6720.453 0.307 0.208 0.1420.097 0.046 0.022 0.011 0.0110.005 0.003 0.001 0.00 Period 20 Period 25 Period 30 Period 40 1.220 1.282 1.348 1.489 1.486 1.806 2.191 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 1.641 2.094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 1.811 2.427 3.243 4.322 5.743 10.063 | 17.449 29.960 50.950 85.850 143.371 237.376 2.208 3.262 4.801 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.3781,469.77: ence Reference Present Value of $1 Future Value of $1 1% 2% 0.990 0.980 0.980 0.961 0.971 0.942 0.961 0.924 0.951 0.906 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.8620.847 0.83 0.943 0.925 0.907 0.890 0.857 0.8260.797 0.769 0.743 0.7180.69 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.6090.57 0.888 0.855 0.8230.792 0.735 0.683 0.636 0.592 0.5520.516 0.48 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.40 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 8% 1.060 1.080 1.124 1.166 1.191 1.260 1.262 1.360 1.338 1.469 10% 1.100 1.210 1.331 1.464 1.611 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 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.33 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.27 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.4040.3510.305 0.266 0.23 0.914 0.837 0.766 0.703 0.6450.592 0.500 0.424 0.361 0.308 0.308 0.263 0.225 0.19 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.270 0.227 0.227 0.1910.16 10.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.1950.162 0.13 20.887 0.788 0.701 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.11 3 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.09 10870 0 758 O 661 0577 0505 0442 0.340 0263 0205 0 160 0 125 0099 007 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 1.419 1.587 1.772 1.974 1.504 1.714 1.949 2.211 1.594 1.851 2.144 2.476 1.689 1.999 2.358 2.773 1.791 2.159 2.594 3.106 2.195 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 Period 11 Period 12 Period 13 Period 14 1.116 1.127 1.138 1 149 1.243 1.268 1.294 1319 1.384 1.426 1.469 1513 1.539 1.601 1.665 1 732 1.710 1.796 1.886 1980 1.898 2.012 2.133 2261 2.332 2.853 3.479 2.518 3.138 3.896 2.720 3.452 4.363 2.937 3797 4 887 4.226 4.818 5.492 6261 5.117 5.936 6.886 7 988 6.176 7.288 8.599 10 147 7.430 8.916 10.699 12 839 ce Reference 2.690 3.127 2.589 2.991 Period 4 Period 5 4.921 6.610 5.066 6.877 5.215 7.154 5.368 7.442 3.902 3.808 3./1/ 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 4.853 4.713 4.580 4.452 4.329 4.2123.993 3.791 3.605 3.433 3.274 5.795 5.601 5.417 5.2425.0764.917 4.623 4.355 4.111 3.889 3.685 6.728 6.472 6.230 6.0025.786 5.5825.206 4.868 4.564 4.288 4.039 7.652 7.325 7.0206.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 8.566 8.1627.786 7.435 7.108 6.802 6.247 5.759 5.328 4.9464.607 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.6505.216 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 Period 6 Period 7 Period 8 Period 9 Period 10 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 9.369 9.755 10.159 | 10.583 11.027 11.491 | 12.488 13.579 14.776 10.462 10.950 11.464 12.006 12.578 13.181 14.48715.937 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 4.327 4.439 4.533 4.611 4.675 10.368 9.787 9.2538.760 8.3067.887 7.139 6.495 5.938 5.453 5.029 4.656 11.255 10.575 9.954 9.3858.8638.384 7.536 6.814 6.194 5.660 5.197 4.793 12. 134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 13.004 12.106 11.296 | 10.563 9.899 9.295 8.244 7.3676.628 6.002 5.468 5.008 13.865 12.849 11.938 11.118 10.380 9.7128.559 7.606 6.811 6.142 5.575 5.092 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 22.023 19.52317.413 15.622 14.094 12.783 10.675 9.077 7.8436.873 7.8436.8736.097 5.467 25.808 22.396 19.600 17.292 15.372 13.765 11.2589.4278.055 7.003 6.177 5.517 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 37.581 43.672 50.818 59.196 Period 15 16.09717.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 Period 20 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 Period 25 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 Period 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312790.948 1,181.88; Period 40 48.886 60.402 75.401 95.026 120.800 154.762259.057 442.593767.0911,342.025 2,360.7574,163.2137,343.85 4.870 4.948 4.979 4.997 Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 0.990 0.980 0.971 0.9620.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.3222.246 2.174 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 5.795 5.601 5.417 5.242 5.0764.917 4.623 4.355 4.111 3.889 3.685 3.685 3.498 6.728 6.472 6.230 6.0025.786 5.5825.206 4.868 4.564 4.288 4.039 3.812 7.652 7.3257.020 6.733 6.463 6.210 5.747 5.335 4.968 4.6394.344 4.078 8.566 8.1627.786 7.435 7.108 6.802 6.247 5.759 5.328 4.9464.607 4.303 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 20% 0.833 1.528 2.106 2.589 2.991 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 1.000 1.000 1.000 2.010 2.020 2.030 3.030 3.060 3.091 4.060 4.122 4.184 5.101 5.204 5.309 4% 1.000 2.040 3.122 4.246 5.416 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 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 3.326 3.605 3.837 4.031 4.192 Period 6 Period 7 Period 8 Period 9 Period 10 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 10.462 10.950 11.464 12.006 12.578 13.181 14.48715.937 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 10.368 9.787 9.2538.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 11.255 10.575 9.954 9.3858.863 8.384 7.536 6.814 6.1945.6605.197 4.793 4.439 12. 134 11.348 10.635 9.986 | 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 13 004 | 12 106 11 296 10 5631 9 899 1 9 295 9 8244 1 7367 | 6828 66281 6002 5468 5008 1 4811 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 Period 12 12.683 13.412 14.192 15.026 15.917 | 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 14 14947 | 15 974 17 086 18 292 | 19 599 21 015 | 24 215 | 27 975 32 393 23.045 27.271 32.089 37 581 25.733 30.850 36.786 43 672 28.755 34 931 42.219 50 818 32.150 39.581 48.497 59 196