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Use the NPV method to determine whether Kyler Products should invest in the following projects: Project A: Costs $270,000 and offers seven annual net
Use the NPV method to determine whether Kyler Products should invest in the following projects: Project A: Costs $270,000 and offers seven annual net cash inflows of $54,000. Kyler Products requires an annual return of 14% on investments of this nature. Project B: Costs $400,000 and offers 10 annual net cash inflows of $77,000. Kyler Products demands an annual return of 12% 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 Years 1-7 Present value of annuity Investment Net present value of Project A Net Cash Annuity PV Factor Present Inflow (-14%, n=7) Value
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