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Use the NPV method to determine whether Juda Products should invest in the following projects: Project A costs $260,000 and offers seven annual net

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Use the NPV method to determine whether Juda Products should invest in the following projects: Project A costs $260,000 and offers seven annual net cash inflows of $63,000. 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 $72,000. Juda Products demands an annual return of 14% on investments of this nature. (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 present value table.) (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 The NPV of Project B is -27532 Now calculate the maximum acceptable price to pay for each project. (Round your answers to the nearest whole dollar.) Project A is Project B is Reference Reference Present Value of Annuity of $1 Present Value of $1 1% 2% 3% 4% 0.980 0.971 0.962 19.046 Periods 5% 6% 8% 10% 12% Period 1 0.990 0.952 0.943 0.926 0.909 0.893 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 Period 3 2.941 2.884 2.829 2.775 2.723 2.673. 2.577 2.487 2.402 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 Deriod 20 14% 16% 0.877 0.862 1.647 18% 20% Periods 0.847 0.833 Period 1 1.605 1.566 1.528 Period 2 1% 0.990 0.980 2.322 2.246 2.174 2.106 Period 3 2.914 3.433 2.798 2.690 2.589 3.274 3.127 2.991 3.889 3.685 3.498 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 Period 4 Period 5 3.326 Period 6 Period 7 Period 8 Period 9 Period 10 5.453 5.660 5.842 6.002 6.142 5.575 5.029 4.656 4.327 Period 11 0.896 5.197 4.793 4.439 Period 12 0.887 5.342 4.910 4.533 5.468 5.008 4.611 5.092 4.675 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.402 16 351 11 977 13 500 12162 11 170 0010 9514 7 460 6.623 5.000 5353 1.970 Reference Reference Future Value of Annuity of $1 Future Value of $1 Periods 1% 2% 3% 4% Period 1 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 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 5% 1.000 6% 8% 1.000 1.000 10% 1.000 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 1.000 Periods Period 1 2.160 2.180 2.200 Period 2 3.440 3.506 3.572 3.640 Period 3 Period 10 Period 4 4,060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 Period 7 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 Period 8 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 Period 9 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 14.487 15.937 17.549 4.921 5.066 5.215 5.368 Period 4 6.610 6.877 7.154 7.442 Period 5 Period 11 Period 12 Period 13 Period 14 Period 15 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 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 32.393 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 Period 20 Period 25 14.240 15.327 16.499 17.519 19.086 20.799 21.321 23.521 25.959 25.733 28.755 32.150 30.850 34.931 39.581 36.786 42.219 48.497 43.672 50.818 59.196 51.660 60.965 72.035 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 115.380 146.628 186.688 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 8.536 10.730 13.233 16.085 8.977 9.442 9.930 Period 6 11.414 12.142 12.916 Period 7 Period 8 19.337 23.045 27.271 Period 9 Period 10 Period 11 Period 12 1% 2% 3% 4% 5% 6% 8% 10% 12% 1.010 1.020 1.030 1.040 1.050 1.060 1.080 1.100 1.120 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.041 1.082 1.126 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 14% 16% 18% 20% 1.140 1.160 1.180 1.200 1.300 1.346 1.392 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 32.089 37.581 43.842 91.025 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 1.127 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 1.220 1.486 1.806 2.191 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 1.282 1.641 2.094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 1.348. 1.811 2.427 3.243 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 1.489 2.208 3.262 4.801 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772

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