Use the NPV method to determine whether Kyler Products should invest in the following projects: Project A costs $280,000 and offers eight annual net cash inflows of $58,000. Kyler Products requires an annual return of 12% on projects like A. Project B costs $395,000 and offers ten annual net cash inflows of $73,000. Kyler Products demands an annual return of 10% on investments of this nature. (Click the icon to view the present value table.) (Click the icon to view the present value annuity table.) (Click the icon to view the future value annuity table.) Requirement (Click the icon to view the future value table.) 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 Present Value of Annuity of $1 Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 14% 16% 18% 20% 0.877 0.862 0.847 0.833 1.647 1.605 1.566 1.528 2.322 2.246 2.174 2.106 2.798 2.690 2.589 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 Periods Period 1 Period 2 2.914 3.433 3.685 3.498 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 0.896 Period 12 0.887 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 6.142 6.623 6.873 7.003 7.105 5.342 4.910 4.533 5.468 5.008 4.611 5.575 5.092 4.675 5.929 5.353 4.870 6.097 5.467 4.948 6.177 5.517 4.979 6.233 5.548 4.997 Period 13 0.879 Period 14 0.870 Period 15 0.861 Period 20 0.820 Period 25 0.780 Period 30 0.742 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.951 0.906 0.863 0.822 0.784 0.747 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.011 0.005 0.003 0.001 0.001 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Reference Reference Future Value of $1 Future Value of Annuity of $1 Periods Period 1 1% 2% 3% 4% 5% 6% 1.000 1.000 1.000 1.000 1.000 8% 1.000 1.000 10% 12% 14% 16% 18% 20% Periods 1.000 1.000 1.000 1.000 1.000 1.000 Period 1 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 2 2.010 2.020 2.030 2.040 Period 3 3.030 3.060 3.091 3.153 3.122 4.060 4.122 4.184 4.246 4.310 4.375 Period 4 5.101 5.204 5.309 5.416 5.526 5.637 6.152 6.308 6.633 6.468 7.434 7.662 7.898 7.214 8.286 8.583 8.892 9.549 9.897 10.637 11.436 9.214 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 Period 2 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 3 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 4 1.041 5.867 6.105 6.353 6.610 6.877 Period 5 1.051 7.154 7.442 6.802 6.975 7.336 8.394 8.923 8.142 7.716 8.115 8.536 8.977 9.442 Period 6 9.930 9.487 10.089 10.730 11.414 12.142 12.916 Period 7 12.300 13.233 14.240 15.327 16.499 Period 8 16.085 17.519 19.337 21.321 19.086 20.799 23.521 25.959 Period 9 Period 10 1% 2% 3% 4% 5% 6% 1.060 1.010 1.020 1.030 1.040 1.050 1.020 1.040 1.061 1.082 1.103 1.124 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1.082 1.126 1.170 1.262 1.216 1.104 1.159 1.217 1.276 1.062 1.194 1.126 1.340 1.265 1.419 1.072 1.149 1.316 1.230 1.407 1.504 1.083 1.172 1.267 1.369 1.477 1.594 1.551 1.094 1.195 1.305 1.423 1.105 1.219 1.344 1.480 1.629 1.338 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 37.581 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 Period 20 Period 25 Period 30 Period 40 25.733 28.755 32.150 30.850 34.931 39.581 36.786 42.219 48.497 43.672 50.818 59.196 51.660 60.965 72.035 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 115.380 186.688 146.628 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 530.312 790.948 1,181.882 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 23.045 27.271 32.089 91.025 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1.200 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.331 1.405 1.561 1.643 1.728 2.074 1.360 1.464 1.574 1.811 1.939 2.488 1.469 1.611 1.762 2.288 1.587 1.772 1.974 2.195 2.436 2.700 2.986 3.583 1.949 2.211 2.502 1.714 2.826 3.185 1.851 2.144 2.476 2.853 3.278 3.759 4.300 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 1.127 2.518 1.268 1.426 1.601 1.796 2.012 3.138 3.896 4.818 5.936 7.288 8.916 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 1.319 1.149 1.513 3.797 1.732 1.980 2.261 2.937 4.887 6.261 7.988 10.147 12.839 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 1.220 1.486 1.806 2.191 2.653 3.207 4.661 6.727 38.338 9.646 13.743 19.461 27.393 1.282 1.641 2.094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 1.348 1.811 2.427 3.243 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 1.489 2.208 3.262 4.801 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 8% 10% 1.080 1.100 12% 1.120 14% 16% 18% 1.140 1.160 1.180 20% 1.482 1.689 1.925 2.100