. Use the NPV method to determine whether McKnight Products should invest in the following projects: Project A: Costs $280,000 and offers eight annual net cash inflows of $56,000. McKnight Products requires an annual retum Project B: Costs $380,000 and offers 10 annual net cash inflows of $74,000. McKnight Products demands an annual return (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 ta Read the requirements. Present Value Project B: Net Cash Annuity PV Factor Years Inflow (i=12%, n=10) 1 - 10 Present value of annuity 0 Investment Net present value of Project B Requirement 2. What is the maximum acceptable price to pay for each project? Maximum Acceptable Price Project A Project B Choose from any list or enter any number in the input fields and then continue to the next question e Text Pages Calculator . . Use the NPV method to determine whether McKnight Products should invest in the following projects Project A Costs $280,000 and offers eight annual net cash inflows of $56,000 McKnight Products requires an annual retum of 14% Project B. Costs $380,000 and offers 10 annual net cash inflows of $74,000 McKnight Products demands an annual return of 12% (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 Maximum Acceptable Price Project A Project B Requirement 3. What is the profitability index of each project? (Round to two decimal places, XXX) Select the formula, then enter the amounts to calculate the profitability index of each project Profitability Index Project A Project B Choose from any list or enter any number in the input fields and then continue to the next question e Text Pages Calculator 15% Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Period 1 12% 14% 0.990 0.980 0.971 0.962 0.9520.943 0.935 0.926 0.917 0.909 0.899 16% 18% 20% Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.877 0.870 0.862 0.847 0.833 0.857 0.842 0.826 0.797 Perlod 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.769 0.756 0.7430.7180.694 0.794 0.772 0.751 0.712 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.675 0.658 0.641 0.609 0.579 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.5190.497 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.750 0.7110.665 0.623 0.583 0.547 0.513 0.4520.400 0.375 0.354 0.314 0279 Period B 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.4040.351 0.3270305 0.266 0233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 Period 11 10.896 0.804 0.722 0.650 0.585 0.527 0.4750429 0.388 0.3500 287 0.237 0.215 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.3880340 0299 0.263 0.206 0.160 0.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0275 0.2390.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.7280.623 0.534 0.458 0.394 0.3390.292 0252 0.2180163 0.123 0.107 0,093 0.071 0.054 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.3170 270 0231 0.198 0.1460108 0.093 0.0800060 0.045 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0083 0.070 0.060 0.043 0.031 Period 20 0.820 0.673 0.5540.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 Period 21 0.811 0.660 0.538 0439 0.3590.294 0.24 0.199 0.164 0.135 0.0930054 0.053 0.044 0.031 0.022 Period 22 0.803 0.647 0.522 0.422 0.3420278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0018 Period 23 0.795 0.634 0.507 0.406 0.3260262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 Period 24 10.788 0.622 0.492 0.3900 3100.247 0.1970.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.0160.010 Period 26 0.772 0.598 0.4640361 02810 220 0.172 0.135 0.106 0.084 0.053 0.0330026 0.021 0.014 0.009 0.161 0.125 0.098 0.076 0.047 0.029 0.023 0.018 | 0.0110.007 Period 27 0.764 0.586 0.450 0347 0.268 0.207 Period 28 0.757 0.574 0.437 0.333 0.255 0.1960.150 0.116 0.090 0.069 0.042 0.025 0.0200016 0.010 0.006 0.141 0.107 0,082 0.063 0.037 0.022 0.017 0.014 0.008 0.005 Period 29 0.7490.563 0424 0.321 0.243 0.185 0.099 0.075 0.057 0.033 0.02000150012 0.007 0.004 Period 30 0.742 0.552 0.412 0.308 0.231 0 1740.131 0.001 0.046 0.032 0.022 0.0110.0050004 0.003 0.001 Period 40 10.672 0.453 0.307 0208 0.142 0097 0.067 0.001 0.021 0.013 0.0090.003 0.001 0.001 Period 50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 Requirements 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. 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 Print Done hen continue to the next