Use the NPV method to determine whether Juda Products should invest in the following projects: Project A: Costs $270,000 and offers seven annual net cash inflows of $57,000. Juda Products requires an annual return of 16% on investments of this nature. Project B: Costs $385,000 and offers 10 annual net cash inflows of $74,000. Juda Products demands an annual return of 14% 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 Inflow Annuity PV Factor (i=16%, n=7) Present Value Years 1-7 Present value of annuity 0 Investment Net present value of Project A Reference Present Value of $1 Periods 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.751 0.683 0.432 0.933 5% 0.952 0.907 0.864 0.823 0.784 0.746 0.711 0.677 0.645 0.614 0.585 0.557 0.530 0.505 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.112 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.527 0.497 0.469 0.442 0.417 0.394 0.371 0.350 0.331 0.312 0.141 0.078 0.861 0.481 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.9240.888 0.906 0.863 0.888 0.837 0.871 0.813 0.853 0.789 0.837 0.766 0.820 0.744 0.804 0.722 0.788 0.701 0.773 0.681 0.758 0.661 0.743 0.642 0.728 0.623 0.714 0.605 0.700 0.587 0.686 0.570 0.673 0.554 0.660 0.538 0.647 0.522 | 0.634 0.507 0.622 0.492 0.610 0.478 | 0.598 0.464 | 0.586 0.450 0.574 0.437 0.563 0.424 0.552 0.412 0.453 0.307 0.372 0.228 0.853 844 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.534 0.513 0.494 0.475 0.456 0.439 0.422 0.406 0.390 0.375 0.361 | 0.347 0.333 | 0.321 0.308 0.208 0.141 7% 8% 9% 10% 0.935 0.926 0.917 0.909 0.873 0.8570.842 0.826 0.816 0.794 0.772 0.763 0.735 0.708 0.713 0.681 0.650 0.621 0.666 0.630 0.596 0.564 0.623 0.583 0.547 0.513 0.582 0.540 0.502 0.467 0.544 0.500 0.460 0.424 0.508 0.463 0.422 0.386 0.475 0.429 0.388 0.350 0.397 0.356 0.319 0.415 0.368 0.326 0.290 0.388 0.340 0.299 0.263 0.362 0.315 0.275 0.239 0.3390.292 | 0.252 0.218 0.317 | 0.270 0.231 0.198 0.296 0.250 0.180 0.277 | 0.232 0.232 0.194 0.164 0.258 0.215 | 0.178 0.149 0.242 0.1990.164 0.135 0.226 0.184 0.150 0.123 0.211 0.170 0.138 0.112 0.197 0.158 0.126 | 0.102 0.184 0.146 | 0.116 0.092 0.172 0.135 0.106 | 0.084 0.161 0.125 0.098 | 0.076 0.150 0.116 0.090 0.069 0.141 0.107 0.082 0.063 0.131 0.099 0.075 0.057 0.067 0.046 0.032 0.022 0.034 0.021 0.013 0.009 12% 14% 15% 0.893 0.877 0.870 0.797 0.769 0.756 0.712 0.675 0.658 0.636 0.592 0.572 0.567 0.519 0.497 0.507 0.456 0.452 0.400 0.376 0.404 0.351 0.327 0.361 0.308 0.284 0.322 0.270 0.247 0.287 0.237 0.215 0.257 0.208 0.187 0.229 0.182 0.163 0.205 0.160 0.183 0.140 0.123 0.163 0.123 0.107 0.146 0.108 0.093 0.130 0.005 0.081 0.116 0.083 0.070 0.104 0.073 0.061 0.093 0.064 0.053 0.083 0.056 0.046 0.074 0.049 0.040 0.066 0.043 0.035 0.059 0.038 0.030 0.053 0.033 0.026 0.047 | 0.029 0.023 0.042 | 0.026 0.020 0.037 | 0.022 0.017 0.033 0.0200.015 0.011 0.005 0.004 0.003 0.001 0.001 16% 18% 20% 0.862 0.847 0.833 0.743 0.7180.694 0.641 0.609 0.579 0.552 0.516 0.482 0.476 0.437 0.402 0.410 0.370 0.335 0.354 0.314 0.279 0.305 0.266 0.233 0.263 0.225 0.194 0.227 0.191 0.162 0.195 0.162 0.135 0.168 0.137 0.145 0.116 0.093 0.125 0.099 0.108 0.084 0.065 0.093 0.071 0.054 0.080 0.060 0.069 0.051 0.060 0.043 0.031 0.051 0.037 0.026 0.044 0.031 0.022 0.038 0.026 0.018 0.033 0.015 0.028 0.019 0.013 0.024 0.016 0.010 0.021 0.014 0.009 0.0180.0110.007 0.016 0.010 0.006 0.014 0.008 0.005 0.012 0.007 0.004 0.003 0.001 0.001 0.001 836 0.458 | 0.436 | 0.416 0.396 | 0.377 0.359 0.342 0.326 0.310 0.295 0.045 0.038 0.212 0.828 0.820 0.811 0.803 0.795 0.788 0.022 OOOO 0.294 0.278 0.262 0.247 0.233 0.220 0.207 0.196 0.185 0.174 0.097 0.054 0.281 0.268 0.255 0.243 0.231 0.142 0.087 0.742 0.672 0.608 Print Done A Reference Periods 5.582 7.020 1% 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 11.255 12.134 13.004 13.865 14.718 15.562 16.398 17.226 18.046 18.857 19.660 20.456 21.243 14% 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 5.453 5.660 5.842 6.002 6.142 2% 3% 4% 0.980 0.971 0.962 1.942 1.913 1.886 2.884 2.829 2.775 3.808 3.717 3.630 4.713 4.580 4.452 5.601 5.417 5.242 6.472 6.230 6.002 7.325 6.733 8.162 7.786 7.435 8.983 8.530 8.111 9.787 9.253 8.760 10.575 9.954 9.385 11.348 10.635 | 9.986 12.106 11.296 10.563 12.849 11.938 11.118 13.578 12.561 11.652 14.292 13.166 12.166 14992 13.754 12.659 15.678 14.324 13.134 16.351 14.877 13.590 17.011 15.415 14.029 17.658 15.937 14.451 18.292 16.444 14.857 18.914 16.936 15.247 19.523 17.413 15.622 20.121 17.877 15.983 20.707 18.327 16.330 21.281 18.764 16.663 21.844 19.188 16.984 22.396 19.600 17.292 27.355 23.115 19.793 31.424 25.730 21.482 5% 0.952 1.859 2.723 3.546 4.329 5.076 5.786 6.463 7.108 7.722 8.306 8.863 9.394 9.899 10.380 10.838 11.274 11.690 12.085 12.462 12.821 13.163 13.489 13.799 14.094 14.375 14.643 14.898 15.141 15.372 17.159 18.256 Present Value of Ordinary Annuity of $1 6% 7% 8% 9% 10% 12% 0.943 0.935 0.926 0.917 0.909 0.893 1.833 1.808 1.783 1.759 1.736 1.690 2.673 2.624 2.577 2.531 2.487 2.402 3.465 3.387 3.312 3.240 3.170 3.037 4.212 4.100 3.993 3.890 3.791 3.605 4.917 4.767 4.623 4.486 4.355 4.111 5.389 5.206 5.033 4.868 4.564 6.210 5.971 5.747 5.535 5.335 4.968 6.802 6.515 6.247 5.995 5.759 5.328 7.360 7.024 6.710 6.418 6.145 5.650 7.887 7.499 7.139 6.805 6.495 5.938 8.384 7.943 7.536 7.161 6.814 6.194 8.853 8.358 7.904 7.487 7.103 6.424 9.295 8.745 8.244 7.786 7.367 6.628 9.712 9.108 8.559 8.061 7.606 6.811 10.106 9.447 8.851 8.313 7.824 6.974 10.477 9.763 9.122 8.544 8.022 7.120 10.828 10.059 9.3728.756 8.201 7.250 11.158 10.336 9.604 8.950 8.365 7.366 11.470 10.5949.818 9.129 8.514 7.469 11.764 10.836 10.017 9.292 8.649 7.562 12.042 11.061 10.2011 9.442 8.772 7.645 12.303 11.272 10.371 9.580 8.883 7.718 12.550 11.469 10.529 9.707 8.985 7.784 12.783 11.654 10.675 9.823 9.077 7.843 13.003 11.826 10.810 9.929 9.1617.896 13.211 11.987 10.935 10.027 9.237 7.943 13.406 12.137 11.051 10.116 9.307 | 7.984 13.591 12.278 11.158 10.198 9.370 8.022 13.765 12.409 11.258 10.274 9.427 8.055 15.046 13.332 11.925 10.757 | 9.779 8.244 15.762 13.801 12.233 10.962 9.915 8.304 15% 16% 0.870 0.862 1.626 1.605 2.283 2.246 2.855 2.798 3.352 3.274 3.784 3.685 4.160 4.039 4.487 4.344 4.772 4.607 5.019 4.833 5.234 5.029 5.421 5.197 5.583 5.342 5.724 5.468 5.847 5.575 5.669 6.047 5.749 6.128 5.818 6.198 5.877 6.259 5.929 6.3125.973 6.3596.011 6.3996.044 6.4346.073 6.464 6.097 6.491 6.118 6.514 6.136 6.534 6.152 6.551 6.166 6.566 6.177 6.642 6.233 6.6616.246 6.265 6.373 6.467 6.954 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 5.092 5.162 5.222 5.273 5.316 5.353 5.384 5.410 5.432 5.451 5.467 5.480 5.492 5.502 5.510 5.517 5.548 5.554 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.730 4.775 4.812 4.844 4.870 4.891 4.909 4.925 4.937 4.948 4.956 4.964 4.970 4.975 4.979 4.997 4.999 6.550 6.623 6.687 6.743 6.792 6.835 6.873 6.906 6.935 6.961 6.983 7.003 7.105 7.133 25.808 32.835 Print Done 0 Requirements 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 Print Print Done