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Use the NPV method to determine whether Hawkins Products should invest in the following projects . Project A. Costs $285,000 and offers seven annual
Use the NPV method to determine whether Hawkins Products should invest in the following projects . Project A. Costs $285,000 and offers seven annual net cash inflows of $55,000. Hawkins Products requires an annual return of 14% on investments of this nature. Project B Costs $395,000 and offers 10 annual net cash inflows of $77,000. Hawkins Products demands an annual return of 12% on investments of this nature: (Click the icon to view Present Value of $1 table.) Read the requirements. (Click the icon to view 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, XXXX 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 Project A: Years 1-7 Present value of annuity 0 Investment Net present value of Project A Net Cash Annuity PV Factor Inflow (i-14%, n=7) Present Value
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