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Use the NPV method to determine whether Kyler Products should invest in the following projects times. Project A costs $265,000 and offers eight annual net

Use the NPV method to determine whether Kyler Products should invest in the following projects times.

Project A costs

$265,000

and offers

eight

annual net cash inflows of

$57,000.

Kyler

Products requires an annual return of

12%

on projects like A.

times

Project B costs

$375,000

and offers

ten

annual net cash inflows of

$72,000

Kyler

Products demands an annual return of

14 %

on investments of this nature.

1. What is the NPV of Project A?

2.What is the maximum acceptable price to pay for each project?

What is the profitable index of each project

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