Use the NPV method to determine whether Juda Products should invest in the following projects: Project A costs $265,000 and offers seven annual net cash inflows of $59,000. Juda Products requires an annual return of 12% on projects like A. Project B costs $390,000 and offers ten annual net cash inflows of $70,000. 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 present value table.) (Click the icon to view the future value annuity table.) (Click the icon to view the future value table.) Requirement 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 Reference I Periods 10% 1 0.990 16% 0.862 1.605 2.246 2.798 3.274 1 2 2% 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 4% 1.000 2.040 3.122 4.246 5.416 20% 0.833 1.528 2. 106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 5 5.309 5.526 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 0.980 0.971 0.962 0.952 0.943 0.926 0.909 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 14 13.004 12.106 11.296 10.563 9.899 9.295 7.367 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 40 32.835 27.355 23.115 | 19.793 17.159 15.046 11.925 9.779 12% 14% 0.893 0.877 1.690 1.647 2.402 2.322 3.037 2.914 3.605 3.433 4.111 3.889 4.564 4.288 4.968 4.639 5.328 4.946 5.650 5.216 5.453 6.194 5.660 6.424 5.842 6.628 6.002 6.811 6.142 7.469 6.623 7.843 6.873 8.055 7.003 8.244 7.105 4.868 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 3.685 4.039 4.344 4.607 4.833 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 6 7 8 9 10 6.468 7.662 8.892 10.159 11.464 6.633 7.898 9.214 10.583 12.006 Future Value of Annuity of $1 5% 6% 8% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 27.975 21.579 23.276 31.772 33.066 36.786 45.762 57 275 47.727 54.865 73.106 98.347 66.439 79.058 113.283 164.494 120.800 154.762 259.057 442.593 14% 16% 18% 20% 1.000 1.000 1.000 1.000 2.140 2.160 2.180 2.200 3.440 3.506 3.572 3.640 4.921 5.066 5.215 5.368 6.610 6.877 7.154 7.442 8.536 8.977 9.442 9.930 10.730 11.414 12.142 12.916 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 23.045 25.733 28.755 32.150 27.271 30.850 34.931 39.581 32.089 36.786 42.219 48.497 37.581 43.672 50.818 59.196 43.842 51.660 60.965 72.035 91.025 115.380 146.628 186.688 181.871 249.214 342.603 471.981 356.787 530.312 1,181.882 1,342.025 2,360.757 4,163.213 7,343.858 5.938 5.029 5.197 5.342 5.468 5.575 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 24.297 32.030 40.568 60.402 4.327 4.439 4.533 4.611 4.675 11 12 13 14 15 8.244 12.808 14.192 15.618 17.086 18.599 26.870 36.459 47.575 75.401 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 24.215 27.152 20.655 24.133 28.029 32.393 37.280 72.052 133.334 241.333 767.091 4.870 4.948 5.929 6.097 6.177 6.233 5.353 5.467 5.517 5.548 4.979 20 25 30 40 22.019 28.243 34.785 48.886 790.948 4.997 Reference X Reference - Present Value of $1 Future Value of $1 Periods Periods 1 18% 1.180 20% 1.200 1% 0.990 0.980 0.971 0.961 0.951 5% 0.952 0.907 0.864 0.823 0.784 2 3 4 6% 0.943 0.890 0.840 0.792 0.747 8% 0.926 0.857 0.794 0.735 0.681 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 1 2 20% 0.833 0.694 0.579 0.482 0.402 1.392 1.440 2% 1.020 1.040 1.061 1.082 1.104 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 3 4 5 12% 1.120 1.254 1.405 1.574 1.762 5 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 1.643 1.939 2.288 1.728 2.074 2.488 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.411 3% 4% 0.971 0.962 0.943 0.925 0.915 0.889 0.888 0.855 0.863 0.822 0.837 0.790 0.813 0.760 0.789 0.731 0.766 0.703 0.744 0.676 0.722 0.650 0.701 0.625 0.681 0.601 0.661 0.577 0.642 0.555 0.554 0.456 0.478 0.375 0.412 0.308 0.307 0.208 1.126 6 7 8 9 10 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.630 0.583 0.540 0.500 0.463 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.227 0.335 0.279 0.233 0.194 0.162 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 1.419 1.504 1.594 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 6 7 8 9 10 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 1.265 1.316 1.369 1.423 1.480 1.149 1.172 1.195 1.219 1.340 1.407 1.477 1.551 1.629 1.689 1.587 1.714 1.851 1.999 2.159 1.974 2.211 2.476 2.773 3.106 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188,884 2.986 3.583 4.300 5.160 6.192 1.791 11 12 13 14 15 0.804 0.788 0.773 0.758 0.743 0.673 0.610 0.552 0.453 0.585 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.429 0.397 0.368 0.340 0.315 0.237 0.208 0.182 0.160 0.140 0.195 0.168 0.145 0.125 0.108 0.135 0.112 0.093 0.078 0.065 11 12 13 14 15 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 5.117 5.936 6.886 7.988 9.266 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147 11.974 27.393 62.669 143.371 750.378 7.430 8.916 10.699 12.839 15.407 20 25 30 40 0.820 0.780 0.742 0.672 0.377 0.295 0.231 0.142 0.312 0.233 0.174 0.097 0.215 0.146 0.099 0.046 0.149 0.092 0.057 0.022 0.104 0.059 0.033 0.011 0.073 0.038 0.020 0.005 0.051 0.024 0.012 0.003 0.037 0.016 0.007 0.001 0.026 0.010 0.004 0.001 20 25 30 40 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.653 3.386 4.322 7.040 3.207 4.292 5.743 10.286 4.661 6.848 10.063 21.725 6.727 10.835 17.449 45.259 9.646 17.000 29.960 93.051 19.461 40.874 85.850 378.721 38.338 95.396 237 376 1,469.772