Une NPV method to termine whether Vargas Products should invest in the following projects Project A Cost $200,000 and offers several cash flow$54,000. Vargas Products requires a rum of 12 starts of the nature Project B. Cos $400,000 and offers 10 ani nechows of $72,000 Vargas Products demands in whom of 10 on investments of the nature Click the toon to view Pront Value of table Click the icon to View Print Value of nary Arly of ) Read the count Project: Net Cash Annuity PV Factor Present Years Inflow 110 101 Value 1.10. Pre value of nuty 0 Notre offre Requirement 2. What is the mobile price to pay for each project? Maximum Acceptable Price Project Projects Rement. Whisprobindex of each time XXX Select the form there wouls to the point Prinder - PA Preto - www.thed and then continue to the next Use the NPV method to determine whether Vargas Products should invest in the following projects Project A: Costs $260,000 and offers seven annual net cash inflows of $54.000. Vargas Products requires an annual return of 12% on investments of this nature Project Costs $400,000 and offers 10 annual net cash inflows of $72,000. Vargas Products demands an annual return of 10% on investments of this nature (Click the icon to view Present Value of $1 table) Click the icon to view Present Value of Ordinary Anecity of $1 table.) Read the 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, Xxoxo value Caciulate 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 0-12%, n7) Value 1-7 Present valoe of annuity 0 Investment Net present value of Project Calculate the NPV of Projecte Project: Net Cash Annuity PV Factor Present Years teflow (110%, 10) Value 1 - 10 Present value of annuity o Investment Net present value of Projects Requirement 2. What is the maimum acceptable price to pay for each project? Choose from any list or enter any number in the input fields and then continue to the next question e Text Pages Calculator - X Reference 7% M Present Value of Ordinary Annuity of 51 Periods 1% 2% 3% 4% 5% 6% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.9170.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 1.970 1.942 1.913 1.886 1.859 1.8331.808 1.783 1759 1736 1.690 1.647 1.626 1.605 1.566 1.528 Period 3 2.941 2884 2.829 2.775 2.723 2.673 2624 2577 2.531 2487 2402 2322 2.283 2246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3312 3.240 3.170 3.037 2.914 2855 2.798 2690 2.589 Period 5 4.853 4.713 4.580 4.452 4320 4212 4.100 3.993 3.890 3.791 3.605 3433 3.352 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4355 4.111 3.889 3.784 3.685 3.498 3.326 Period 7 6.728 6.472 6230 6.002 5.786 5582 5.389 5206 5,033 4868 4564 4 288 4.160 4.039 3.812 3.605 Period 8 7.652 7.325.7.020 6.733 6.463 6.210 5.971 5.747 5,535 5.335 4.968 4,639 4487 4.344 4.078 3.837 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6247 5.9955.759 5.328 4.9464.772 4.607 4303 4,031 Period 10 9.471 8.983 8.530 8.111 7.722 7360 7.024 6.710 6.418 6.145 5.650 5.216 5,019 4833 4494 4.192 Period 11 10.368 9.7879.2538.760 8.306 7887 7.499 7.139 6.805 6.495 5.938 5.453 5234 5.029 4656 4.327 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.9437.536 7.161 | 6.814 6.194 5.660 5421 5.197 4.793 4439 Period 13 12.134 11,348 10.635 9.986 9.3948.853 8.358 7.904 7.487 7.103 6.424 5.842 5583 5.3424.910 4.533 Period 14 13.004 12.106 11,296 10.5639.899 9.295 8.745 8.244 7.7867367 6.628 6.002 5.724 5.468 5.008 4611 Period 15 13.865 12.849 11.938 11.118 10.3809712 9.108 8.559 8.061 7.606 6.811 6.142 5847 5.575 5.0924.675 Period 16 14.718 13.578 12 561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730 Period 17 15.562 14.292 13.166 12.166 11.274 10.4771 9.763 9.122 8.5448.022 7.120 6.373 6.047 5.749 5.222 4.775 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.467 6.128 5.818 5.273 4.812 Period 19 17 226 15,678 14.324 13.134 12.08511.158 10.336 9.604 8.950 8.365 7.366 6550 6.198 58775316 4844 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7 469 6.623 6.259 5.929 5353 4.870 Period 21 18.857 17.011 15.415 14.029 12 821 11.764 10.836 10.017 9.2928.649 7.562 6.687 6.312 5.973 5.384 4891 Period 22 19.680 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9,442 8.772 7.645 6.743 6.359 6.011 5.410 4.909 Period 23 20.456 18.292 16.444 14.857 13.489 12 303 11 272 10.371 9.580 8.883 7.718 6.792 6.399 6,044 5.432 4.925 Period 24 21.243 18.914 16.936 15.247 13.799 12.550 11469 10.529 9.7078.985 7.784 6.835 6.434 6.073 5:451 4.937 Period 25 22.023 19.523 17413 15.622 14.094 12.783 11.654 10.675 9.8239.077 7.843 6.873 6.464 6.097 5.467 4.948 OV OV equi equil 1 ye Print Done then Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.8470 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.7180 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.6090 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.5520.5160 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.4370 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.3700 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.3140 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.4040.351 0.327 0.305 0.266 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.1919 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.1620 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043d Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.0370 Period 21 0.8110,660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.0269 Period 23 0.795 0.634 0.507 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 Period 24 0.788 0.622 0492 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.0160 Print Done