Use the NPV method to determine whether Juda Products should invest in the following projects: Project A costs $280,000 and offers eight annual net cash inflows of $62,000. Juda Products requires an annual return of 12% on projects like A. Project B costs $380,000 and offers ten annual net cash inflows of $71,000. Juda Products demands an annual return of 10% on investments of this nature. (Click the icon to view the present value table.) (Click the icon to view the present value annuity table.) (Click the icon to view the future value annuity table.) Requirement (Click the icon to view the future value table.) What is the NPV of each project? What is the maximum acceptable price to pay for each project? Calculate the NPV of each project. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV of Project A is Reference Present Value of Annuity of $1 Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 0.962 Period 2 1.970 1.942 1.913 1.886 Period 3 2.941 2.884 Period 4 3.902 Period 5 4.853 Period 6 5.795 Period 7 6.728 Period 8 7.652 Period 9 8.566 Period 10 9.471 Period 14 13.004 Period 15 13.865 6% 8% 10% 12% 14% 0.952 0.943 0.926 0.909 0.893 0.877 1.859 1.833 1.783 1.736 | 1.690 1.647 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 4.713 4.580 4.452 5.601 5.417 5.242 6.472 6.230 6.002 7.325 7.020 6.733 8.162 7.786 7.435 8.983 8.530 8.111 Period 11 10.368 9.787 9.253 8.760 Period 12 11.255 10.575 9.954 9.385 8.863 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 5% 16% 18% 20% 0.862 0.847 1.605 0.833 1.566 1.528 2.246 2.174 2.106 2.914 2.798 2.690 2.589 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 5.076 4.917 4.623 5.786 5.582 5.206 4.868 4.564 6.463 6.210 5.747 5.335 4.968 7.108 6.802 6.247 5.759 5.328 7.722 7.360 6.710 6.145 5.650 4.355 | 4.111 3.889 3.685 3.498 3.326 4.288 4.039 3.812 3.605 4.639 4.344 4.078 3.837 4.946 4.607 4.303 4.031 5.216 4.833 4.494 4.192 8.306 7.887 7.139 6.495 5.938 5.453 8.384 7.536 6.814 6.194 5.660 5.029 5.197 4.793 4.439 4.656 4.327 5.842 5.342 4.910 4.533 6.002 5.468 5.008 4.611 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 Period 30 25.808 22.396 | 19.600 17.292 15.372 13.765 11.258 9.427 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 7.843 8.055 6.623 5.929 5.353 4.870 6.873 6.097 5.467 4.948 7.003 6.177 5.517 4.979 8.244 7.105 6.233 5.548 4.997 Reference Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 Period 5 4.060 5.101 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 11 Period 12 Period 13 Period 14 Period 15 Period 6 6.152 6.308 6.468 Period 7 7.214 7.434 7.662 7.898 8.142 Period 8 8.286 8.583 8.892 9.214 9.549 Period 9 9.369 9.755 10.159 10.583 11.027 11.491 Period 10 10.462 10.950 11.464 12.006 12.578 | 13.181 11.567 12.169 12.808 13.486 14.207 14.972 12.683 13.412 14.192 15.026 15.917 16.870 18.977 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 8.394 8.923 9.487 9.897 10.637 12.488 10.089 11.436 12.300 14.487 13.579 14.776 15.937 | 17.549 13.233 16.085 19.337 16.645 18.531 20.655 23.045 10.730 11.414 14.240 15.327 16.499 17.519 19.086 20.799 21.321 23.521 25.959 25.733 28.755 12.142 12.916 21.384 | 24.133 27.271 32.393 37.280 30.850 32.089 36.786 37.581 43.672 50.818 59.196 43.842 51.660 60.965 72.035 32.150 34.931 39.581 42.219 48.497 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 115.380 146.628 186.688 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 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 Period 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 91.025 Reference Present Value of $1 Periods 1% 2% 3% 4% 5% Period 1 0.990 0.980 0.971 0.962 0.952 Period 6 Period 2 0.980 Period 3 0.971 Period 4 0.961 Period 5 0.951 0.942 0.906 0.961 0.943 0.925 0.942 0.915 0.889 0.924 0.888 0.855 0.863 0.822 0.907 6% 8% 10% 12% 14% 0.943 0.926 0.909 0.893 0.877 0.890 0.857 0.826 0.797 0.769 0.864 0.840 0.794 0.751 0.712 0.675 0.823 0.792 0.735 0.683 0.636 0.592 0.784 0.747 0.681 0.621 0.567 0.519 16% 18% 20% 0.862 0.847 0.833 0.743 0.718 0.694 0.641 0.609 0.579 0.552 0.516 0.482 0.476 0.437 0.402 0.888 Period 7 0.933 0.871 0.837 0.790 0.746 0.705 0.630 0.564 0.813 0.760 0.711 0.665 0.583 0.513 0.507 0.456 0.410 0.370 0.335 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.452 0.540 0.467 0.404 0.500 0.424 0.361 0.463 0.386 0.322 0.400 0.354 0.314 0.279 0.351 0.305 0.266 0.233 0.308 0.263 0.225 0.194 0.270 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 Period 12 0.887 Period 13 0.879 Period 14 0.870 Period 15 0.861 0.788 0.701 0.625 0.557 0.497 0.397 0.773 0.681 0.601 0.530 0.469 0.368 0.758 0.661 0.577 0.505 0.442 0.340 0.743 0.642 0.555 0.481 0.417 0.315 0.319 0.257 0.208 0.168 0.137 0.112 0.290 0.229 0.182 0.145 0.116 0.093 0.263 0.205 0.160 0.125 0.099 0.078 0.239 0.183 0.140 0.108 0.084 0.065 Period 20 0.820 0.673 0.554 0.456 0.377 Period 25 0.780 0.610 Period 30 0.742 Period 40 0.672 0.552 0.453 0.478 0.375 0.295 0.412 0.308 0.231 0.307 0.208 0.142 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 Reference Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.010 1.020 1.030 1.040 1.050 Period 2 1.020 1.040 1.061 Period 3 1.030 1.061 1.093 1.082 1.103 1.125 1.158 Period 4 1.041 1.082 1.126 Period 5 1.051 1.104 1.159 1.217 1.170 1.216 1.276 1.060 1.080 1.100 1.120 1.140 1.124 1.166 1.210 1.254 1.300 1.346 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.262 1.360 1.464 1.574 1.689 1.811 1.338 1.469 1.611 1.762 1.925 2.100 1.160 1.180 1.200 1.392 1.440 1.728 1.939 2.074 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 Period 7 1.072 1.149 1.230 1.316 Period 8 1.083 1.172 1.267 Period 9 1.094 1.195 1.305 Period 10 1.105 1.219 1.344 Period 11 1.116 1.243 1.384 Period 12 1.127 1.268 1.426 Period 13 1.138 Period 14 1.149 Period 15 1.161 Period 20 1.220 Period 25 1.294 1.539 1.710 1.898 2.332 1.601 1.796 2.012 2.518 1.469 1.665 1.886 2.133 2.720 1.319 1.513 1.732 1.980 2.261 2.937 1.346 1.558 1.801 2.079 2.397 3.172 1.587 1.407 1.504 1.714 1.369 1.477 1.594 1.851 2.144 1.423 1.551 1.689 1.999 2.358 2.773 3.252 1.480 1.629 1.791 2.159 2.594 3.106 3.707 3.479 3.896 1.772 1.974 2.195 2.436 2.700 2.986 1.949 2.211 2.502 2.826 3.185 3.583 2.476 2.853 3.278 3.759 4.300 3.803 4.435 5.160 4.411 5.234 6.192 2.853 3.138 3.452 3.797 4.226 5.117 6.176 4.818 5.936 7.288 4.363 5.492 6.886 8.599 7.430 8.916 10.699 4.887 6.261 7.988 10.147 4.177 5.474 7.138 9.266 11.974 12.839 15.407 1.282 Period 30 Period 40 1.348 1.489 1.811 2.208 1.486 1.806 2.191 2.653 1.641 2.094 2.666 3.386 2.427 3.243 4.322 3.262 4.801 7.040 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772