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 $56,000. Juda Products requires an annual return of 12% on investments of this nature. Project B: Costs $385,000 and offers 10 annual net cash inflows of $76,000. Juda 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 Annuity of $1 table.) Read the requirements. 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, X.XXX. 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: Net Cash Annuity PV Factor Present Years Inflow (i=12%, n=7) Value 1- 7 Present value of annuity 0 Investment Net present value of Project A Calculate the NPV of Project B. Project B: Net Cash Annuity PV Factor Present Years Inflow (i=10%, n=10) Value 1 - 10 Present value of annuity 0 Investment Net present value of Project B Requirement 2. What is the maximum acceptable price to pay for each project? Maximum Acceptable Price Project A Project B Requirement 3. What is the profitability index of each project? (Round to two decimal places, X.XX.) Select the formula, then enter the amounts to calculate the profitability index of each project.Requirement 2. What is the maximum acceptable price to pay for each project? Maximum Acceptable Price Project A Project B Requirement 3. What is the profitability index of each project? (Round to two decimal places, XXX.) Select the formula, then enter the amounts to calculate the profitability index of each project. Profitability Index Project A Project BRequiremen for each project Average amount invested Project A Average annual operating income Project B Initial investment Requiremen Round to two Select the for Present value of net cash inflows itability index o Project ARequirements 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. 2. What is the maximum acceptable price to pay for each project? 3. What is the profitability index of each project? Round to two decimal places.Reference Present Value of $1 15% 16% 18% 20% Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 0.847 0.833 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 0.743 0.718 0.694 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 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 Period 3 0.971 0.942 0.636 0.572 0.552 0.516 0.482 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.592 Period 5 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 0.437 0.402 0.951 0.705 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 Period 6 0.942 0.888 0.837 0.790 0.746 0.666 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 Period 7 0.933 0.871 0.813 0.760 0.711 0.789 0.731 0.677 |0.627 0.582 0.540 0.502 |0.467 0.404 0.351 0.327 0.305 0.266 0.233 Period 8 0.923 0.853 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 0.194 Period 9 0.914 0.837 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 0.191 0.162 Period 10 0.287 0.162 0.135 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.237 0.215 0.195 0.168 0.137 0.112 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 0.093 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 0.141 0.125 0.099 0.078 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 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 0.065 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 0.054 0.045 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 0.130 0.095 0.081 0.069 0.051 0.038 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 Period 19 0.828 0.686 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 0.037 0.026 Period 21 0.811 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 0.022 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 0.026 0.018 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 0.015 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 Period 24 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 0.016 0.010 Period 26 0.772 0.598 0.464 0.361 0.281 0.220 0.172 0.135 ).106 0.084 0.053 0.033 1.026 0.021 0.014 0.009 1023 0.018| 0.011 0.007 Period 27 0.764 0.586 0.450 | 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0.196 0.150 0.116 0.090 0.069 0.042 0.026 0.020 0.016 0.010 0.006 Period 28 0.757 0.574 0.437 0.333 0.255 0.185 0.141 0.107 0.082 0.063 0.037 0.022 0.017 0.014 0.008 0.005 Period 29 0.749 0.563 0.424 0.321 0.243 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.033 0.020 0.015 0.012 0.007 0.004 Period 30 0.742 0.552 0.412 0.001 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.011 0.005 0.004 0.003 0.001 0.003 0.001 0.001 0.001 Period 50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.021 0.013 0.009Present Value of Ordinary Annuity of $1 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Periods 1% 2% 3% 4% 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 1.942 1.913 1.886 .85 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1.605 1.566 1.528 Period 2 1.970 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 12.106 Period 3 2.941 2.884 2.829 Period 4 3.902 3.808 3.717 3.630 3.546 |3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 3.791 3.605 3.433 3.352 3.274 3.127 2.991 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 4.111 3.889 3.784 3.685 3.498 3.326 Period 6 5.795 5.601 5.417 5.242 5 076 4.917 4.767 4.623 4.486 4.355 4.868 4.564 4.288 4.160 4.039 3.812 3.605 Period 7 5.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.078 3.837 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 4.487 4.344 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 Period 9 8.566 8.162 7.786 7.435 4.833 4.494 4.192 Period 10 9.471 8.983 8.530 8.111 7.722 |7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.327 Period 11 10.368 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.42 5.197 4.793 4.439 Period 12 11.255 10.575 9.954 3.385 7.103 6.424 5.842 5.583 5.342 4.910 4.533 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.611 Period 14 13.004 12.106 11.296 Period 15 13.865 12.849 11.938 11 118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 5.575 5.092 4.675 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 15.562 14.292 13.166 12 166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 Period 17 8.201 7.250 6.467 6.128 5.818 5.273 4.812 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.950 8.365 7.366 6.550 6.198 5.877 5.316 4.844 Period 19 17.226 15.678 14.324 13.134 12 085 11.158 10.336 9.604 8.514 7.469 6.623 6.259 5.929 5.353 4.870 Period 20 18.046 16.351 14.877 13.590 12 462 11.470 10.594 9.818 9.129 15.415 14 029 12 821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 5.973 5.384 4.891 Period 21 18.857 17.011 6.359 6.011 5.410 4.909 Period 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 6.044 5.432 4.92 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 8.985 7.784 6.835 6.434 6.073 5.451 4.937 |Period 24 21.243 18.914 16.936 15 247 13.799 12.550 11.469 10.529 9.707 6.873 6.464 6.097 5.467 4.948 Period 25 22.023 19.523 17.413 15 622 14 094 12.783 11.654 10.675 9.823 9.077 7.843 22.795 20.121 17.877 15.983 14.375 13.003 11.826 10.810 9.929 9.161 7.896 6.906 6.491 6.118 5.480 4.956 Period 26 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 6.935 6.514 6.136 5.492 4.964 Period 27 6.961 6.534 6.152 5.502 4.970 Period 28 24.316 21.281 18.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 7.984 16.984 15.141 13.591 12.278 11.158 10.198 9 9.370 8.022 6.983 6.55 6.166 6.510 4.975 Period 29 25.066 21.844 19.188 19.600 17 292 15.372 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.566 6.177 5.517 4.979 Period 30 25.808 22.396 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.244 7.105 6.642 6.233 5.548 4.997 Period 40 39.196 31.424 25.730 21.482 18 256 15.762 13.801 12 233 10.962 9.915 8.304 7.133 6.661 6.246 5.554 4.999 Period 50