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Use the NPV method to determine whether Juda Products should invest in the following projects Prod A Costs $290.000 and offers eight annual net cash

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Use the NPV method to determine whether Juda Products should invest in the following projects Prod A Costs $290.000 and offers eight annual net cash inflows of S57000 Juda Products requires an annual return of 14% on investments of this nature * Project B Costs $375,000 and offers 10 annual net cash inflows of S76000 Juda Products demands an annual return of 12% on investments of this nature (Click the icon to view the Present Value of $1 table)Click the icon to vew the Present Value of 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-14%, m-8 Present Value Years 1-8 Present value of annuity 0 Investment Net present value of Project A 6 Requirements What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places 1. 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 1 Perodsl 1% 12% 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% | 16% | 18% | 20% 1 | 0990 | 0980 | 0971 | 0962 | 0952 | 0943 | 0935 | 0926 | 0917 0.909 | 0893 | 0877 0870 | 0862 | 0847 | 0833 20980 0961 0943 0925 0907 0890 0873 0857 0842 0826 0797 0.769 0756 0.743 0718 0694 3 0971 0942 0915 0889 0.864 0.840 0816 0794 0772 0.751 0.712 0675 0.658 0641 0609 0.579 4 | 0.961 | 0924 | 0.888 | 0 855 | 0823 | 0792 | 0763 | 0735 | 0708 | 0683 | 0.636 | 0.592 | 0.572 | 0552 | 0516 | 0482 5 | 0951 | 0906 | 0.863 | 0.822 | 0784 | 0747 | 0713 | 0681 | 0650 | 0621 | 0.567 | 0.519 | 0497 0476 | 0437 | 0402 6 0942 0838 0.837 0.790 0.746 0.705 06660.630 0596 0.564 0.507 0456 0.432 0410 0.370 0335 7 0.933 0.871 0.813 0760 0.711 0.665 0623 0583 0547 0513 0 452 0400 0.376 0354 0314 0279 8 0923 0853 0.789 0731 0677 0627 0582 0540 0502 0467 0404 0.351 0.327 0305 0266 0.233 9 | 0914 | 0837 0766 | 0703 | 0645 | 0.592 | 0.544 | 0.500 | 0460 | 0424 | 0361 | 0308 0284 | 0.263 | 0.225 0.194 10 0.905 0820 0744 0676 0614 0558 0508 0463 0422 0386 0322 0270 0.247 0227 0.191 0.162 11 0.896 08040.722 0.650 0.585 0527 0475 0.429 0388 0350 0287 0237 0.215 0.195 0.162 0.135 12 0.887 | 0788 | 0.701 | 0.625 | 0557 | 0497 | 0444 | 0.397 | 0356 | 0.319 | 0.257 | 0.208 0.187 | 0.168 0.137 | 0.112 13 | 0879 | 0773 0681 | 0601 | 0530 | 0469 | 0415 | 0.368 | 0326 | 0.290 | 0.229 | 0.182 0163 0145 0.116 | 0093 14 0.870 0.758 0.661 0.577 0.505 0442 03880340 0299 0.263 0.205 0.160 0.141 0.125 0099 0.078 15 0.861 0743 0.642 0555 0481 04170362 0315 0275 0239 0.183 0.140 0.123 0.108 0.084 0.065 16 0853 0728 0623 0534 0.458 0394 0339 0292 0252 0218 0.163 0.123 0.107 0093 0071 0.054 17 0844 0714 0.605 0513 0.436 0371 0.317 0270 0231 0.198 0.146 0.108 0.093 0080 0060 0.045 18 0836 0700 0587 0494 0.416 0350 0.2960.250 0212 0.180 0.130 0.095 0.081 0069 0.051 0.038 19 0828 0686 0.570 0475 0.396 0.3310277 0232 0194 0.164 0.116 0083 0.070 0060 0.043 0031 20 0820 0673 0554 0456 0.377 0312 0258 0215 0.178 0.149 0.104 0073 0061 0051 0.037 0.026 21 | 0811 | 0660 | 0538 | 0439 | 0359 | 0.294 | 0.242 | 0.199 | 0164 | 0.135 0.093 | 0.064 | 0053 | 0044 | 0.031 | 0022 22 0.803 0.647 0.522 0422 0.342 0278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0038 0.026 0.018 23 0795 0634 0.507 0406 0326 0.262 02110.170 0.138 0.112 0.074 0.049 0040 0033 0022 0015 24 0788 0622 0492 0390 0310 0.247 0.197 0.158 0126 0.102 0.066 0.043 0035 0.028 0019 0013 25 0.780 0610 0478 0375 0.295 0233 0.184 0146 0.116 0.092 0059 0038 0.030 0024 0016 26 0772 | 0598 | 0464 | 0.361 | 0.281 | 0.220 | 0.172 | 0.135 | 0106 0084 | 0053 | 0.033 0.026 | 0021 | 0014 | 0009 27 0764 0.586 0.450 0347 0268 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0023 0018 0.011 0.007 28 0.757 05740437 0333 0255 0.196 0.150 0.116 0090 0.069 0042 0026 0020 0016 0010 0.006 29 0749 0563 0424 0321 0243 0.185 0141 107 0082 0063 0037 00220017 0014 0008 005 30 0742 0552 0412 0308 0231 0174 0131 0099 0075 0057 0033 0020 0015 0012 0007 0004 i Reference Present Value of Annuity of st 15% .T 6%-T 7% - 8% 9% 10% 112% P ods 1% 2% 3% 1-4% 14% 15%- 165 - 18% - 20% 0990 0980 09710962 0952 0943 0935 0926 0917 09090893 0877 0870 0862 0847 033 2 1970 .942 913 1886 1859 1833 1808 1.783 1759 1736 1690 1647 1626 1605 1.566 1.528 3 2941 2884 2829 2775 2723 2673 2624 2577 2531 2487 2402 2322 2283 2246 2174 2106 10 8566 325 623n 52329 465 9 8566 8.162 7.786 7435 7.108 68026515 6247 5996 6.759 5328 4946 4.772 4607 4303 4.031 11 10.368 9.7879253 8760 8306 7.887 7499 7139 6805 6.495 5938 5453 5234 5029 4656 4.327 43902 3808 3717 3630 35463466 3387 3312 3240 3170 3037 2914 2855798 2690 2589 5 4853 4713 4580 4452 4.329 4212 4.100 3993 3890 3.791 3605 34333352 3274 3.127 2991 6 5.795 5601 5417 5242 5076 4917 4767 4623 4486 4355 411 3889 3.784 3685348 3326 7 | 6728 | 6472 | 6230 6.002 | 5786 | 5582 | 5389 | 5206 | 5.033 4.868 | 4564 4288 4160 | 4039 3812 | 3605 8 | 7.652 | 7325 | 7020 | 6733 | 6463 | 6210 | 5971 | 5747 | 5535 | 5335 | 4 968 | 4539 | 4487 | 4344 | 4,078 | 3837 1 10 9471 89838530 8.111 7 722 7.3607024 6.710 6418 6.145 5650 5216 5.019 4.833 4494 4192 7 12 | 11.255 | 10575| 9954 | 9385 | 8863 8.384 | 7943 | 7536 | 7161 | 6814 | 6.194 | 5660 | 5421 | 5197 | 4793 | 4439 13 12134 11.348 10.635 99869.394 8.853 8358 7904 7487 7.103 6.4245842 5583 5342 4910 14 13.004 12106 11.296 10.563 9899 9.295 8745 82447786 7.367 6628 6002 5724 5468 5008 4.611 15 13.865 12 849 11.938 11.118 10.380 9.712 9108 8559 8061 7606 6811 61425847 5575 924675 16 14.718 1357812561 11.652 10838 10.106 9447 8851 8313 78246974 6265 6954 5668 5162 4730 17 15 562 14 292 13.166 12166 11274 10477 9763 9122544 8022 7120 6373 6047749 5222 4775 18 16.398 14 992 13.754 12.659 11.690 10 828 10.059 9.372 8756 8201 7250 6467 6.128 5818 5273 4812 19 17.226 15.678 14.324 13134 12085 11.158 10.336 9604 8950 8365 7.366 6550 6.198 5877 5316 4843 20 18046 16351 14.877 13590 12462 11470 10 594 98189129 8514469 6623 29 5929 633 4870 21 18.857 17011 15415 14029 12 821 11764 10836 10017 9292 8649 7562 6687 6312 5973 5384 4891 22 19660 17658 5937 14451 13163 12042 110 10 201 9442 8772 7645 6743 6359 60115410 4909 23 20456 18292 1644414857 13489 12 303 11272 10371 9580 8883 7718 6792 6399 60445432 4925 24 | 21 243 | 18914 | 16936| 15247| 13799 | 12550| 11.469 | 10529| 9707 | 8985 | 7784 6.835 | 6434 | 6073 | 5451 | 4937 25 22023 19 523 17413 15,622 14.094 12783 11.654 10675 9823 9077 7843 6873 446097 5467 4948 26 22795 20.121 17 877 15983 14 375 13003 11 826 10.81 0 9929 9161 7896 6 906 64916.118 5480 4956 27 23560 20 707 18327 16 330 14 643 1321111.987 10935 10027 9237 7943 6935 6514 6.136 5492 4964 28 24316 21.281 18764 16 663 14 898 13.406 12137 11051 10 116 9307 7984 6961 634 6.152 5502 4970 29 25 066 21.844 19188 16 984 15.141 13591 12278 11158 10 19e 9370 8022 6983 6551 6.166 5510 4975 30 25 808 22 396 19 600 17292 15.372 13,765 12409 11.258 10.274 942785003 666 6177 5517 4979 836.1 27.355 23115. 19 793. 17.159 15.046. 13.332 111.5 1 10.7579.779

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