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Use the NPV method to determine whether Kyler Products ahould invest in the following projects: - Project A : Costs $295,000 and offers eight annual
Use the NPV method to determine whether Kyler Products ahould invest in the following projects: - Project A : Costs $295,000 and offers eight annual net cash inflows of $52,000. Kyler Products requires an annual returri of 12% on invesimerris of this nature. - Project B: Costs $395,000 and offers 9 annual net cash inilows of $75,000. Kyler Products demands an annual return of 10% on investments of this nature. (Click the icon to view Present Value of $1 table.) (Click the ican to view Present Value of Crdinary Annuity of $1 table.) Read the revuirements. Requirement 1. What is the NPV of each projecl? Assume neither project has a residual value. Round to two decimal places. (Enter any lactor amounts to three decimal places, X.xxX. Use parentheses or a minus sign tor a negative net present value.) Caclulate the NPV inet present valuej of each project. Begin by calculating the NPV of Project A
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