. Use the NPV method to determine whether McKnight Products should invest in the following projects: Project A: Costs $275,000 and offers seven annual net cash inflows of $56,000. McKnight Products requires an annual return of 12% on investments of this rature Project B: Costs $400,000 and offers 9 annual net cash intlows of $75,000. Mcknight Products demands an annual return of 10% on investments of this rature. Click the icon to view Present Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of S1 table.) 4% Present Value of $1 Periods 1% 2% 3% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.8470.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.8570.842 0.826 0.797 0.769 0.750 0.7430.7180.694 Perlod 3 0.971 0.942 0.915 0.8890.864 0,840 0.816 0.7940.772 0.751 0.712 0.875 0.658 0.6410.609 0.579 Period 4 0.961 0.924 0.888 | 0.855 0.823 0.792 0.763 0.735 0.709 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 0.519 0.497 0.476 0437 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 0.760 0.7110.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.4040.351 0.327 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.6450.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Perlod 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 0.19 0.162 Period 11 0.896 0.8040.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 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 0.25% 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 0.3260.290 0.229 0.182 0163 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.2050 1600 141 0.125 0.099 0.075 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 Print Done Reference the TRUY ars ers due VUE VUI V each 2) of e Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.3390292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.714 0.605 0.513 0.438 0.371 0.317 0270 0.231 0.1990.146 0.108 0.093 0.080 0.060 | 0.045 Period 18 836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.1800.130 0.095 0.081 0.069 0.051 0.038 Period 19 10.828 0.686 0,570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.028 Period 21 0.811 0.660 0.538 0.439 0.3590 2940.242 0.1990.1640.135 0.093 0.064 0.053 0.014 0.031 0.022 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.028 0.018 Period 23 0.795 0.6340.507 0.4060.326 0.262 0211 0.1700.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 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 0.1840.146 0.116 0.092 0.0590.038 0.030 0.024 0.016 0,010 Period 26 0.772 0.598 0.464 0.361 0.21 0.220 0.172 0.135 0.106 0.084 0.053 0.033 0.025 0.021 0.014 0.009 Period 27 10.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.0470.0290.023 0,015 0.0110.007 Period 25 0.757 0.574 0.437 0.333 0.255 0.1960.150 0.116 0090 0.000 0.042 0.026 0.0200016 0.010 0.006 Period 29 0.7490.563 0424 0.321 0.243 0.185 0.14 0.107 0.082 0.063 0.037 0.022 0.017 | 0.014 0.005 0.005 Period 30 0.742 0.5520.412 0.308 0.23 0.1740.131 0,099 0.075 0.057 0.033 0.020 0,015 0,012 0.007 0.004 Period 40 0.672 0.453 0,307 0208 0.142 0.097 0.067 0.046 0.032 0.022 0.0110.005 0.0040.003 0.001 0.001 Period 50 10.608 0.372 1 0.22 0.14 0.087 0.054 1 0.034 0.021 0.013 1 0.009 1 0.003 0.00 0.00 0.00 oject A Print hy numb Done Done Periods Perlod 1 Period 2 Perlod 3 Period 4 Perlod 5 Period 6 Perlod 7 Period 8 Period 9 Period 10 Present Value of Ordinary Annulty of $1 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1.605 1.566 1.528 2.941 2.884 2.829 2.775 2.723 2.673 2624 2.577 2.531 2.487 2402 2322 2283 2246 2.174 2 106 3.902 3.808 3.717 3.630 3.546 3.465 3,3873.312 3.240 3.170 3.037 29142855 2.798 2690 2.589 4.853 4.7134.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 | 3.352 3.274 3.127 2 991 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.62344864.355 4.111 3.889 3.784 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033| 4.868 4.564 4.288 4.160 4.0393.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.7475.535 5.335 4.968 4.639 4.487 40783,837 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4946 4.772 4.607 4.303 4,031 9.471 8.983 8.530 8.111 7.7227360 | 7024 6.710 6.418 6.145 5.6505.216 5.019 4833 4.494 4.192 10.368 9.787 9.253 8.760 8.306 7 897 7.499 7139 6.805 6.495 5.9385.453 5.2345,0294.556 4327 11.255 10.575 9.954 9 385 | 8,863 8.384 7943 7.536|71616.8146.1945,660 5.421.5.1974:7934439 12.134 11 348 10.6359.986 9.394 8.853 8.358 7.9047.487 7.103 6.424 5.8425.583 5.3424.910 4.533 13.004 12.106 11.298 10.5639.899 9.295 8.745 8.2447.7867367 6.628 6.002 5.724 5.468 5.005 4 611 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.0617606 6.811 8.1425.8475.575 5.0924.675 Period 11 Period 12 Period 13 Period 14 Period 15 Print Danse eference UUV WOT TUUU VUI . TY iv TUTVU WWW WUE AVIV ETION TLUS TTOO TETTU TAVUUTTE Perlod 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 62655.954 5.669 5.162 4.730 Perlod 17 15.562 14.292 13.166 12.166 1127410.477) 9.763 9.122 8,544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 Perlod 18 16.399 14.992 13.754 12.659 11.690 10.828 10.0599.372 8.756 8.201 7.250 6.4676.128 5.818 5.2734.812 Period 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 | 9.604 8.950 8.365 7.366 6.550 6.198 5,877 5.316 4.844 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 10.5949.818 9.129 8.514 7.469 6,623 6.259 5.929 5.353 4.870 Period 21 18,857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 5.973 5,384 4.891 Period 22 19.660 17.658 15.93714.451 13.163 12.042 11.061 10.2019.442 8.772 | 7.6456.7436.359 6.011 5.410 4.909 Perlod 23 20.45618.292 16.444 14.857 13.489 12 303 11 272 10.371 9.580 8.883 7.718 6.792 6.399 6.044 5.432 4.925 Period 24 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.9857.784 6.835 6.434 6.073 5,451 4937 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.8436.873 6.464 6.097 5.467 4.948 Period 26 22.795 20.12117.87715.983 14.375 13.003) 11.826 0.810 0.929 9.161 7.896 6.906 6.491 6.118 5.480 4956 Period 27 23.560 20.707 18.32716.330 14.643 13.211 11.987 20.935 10.027 9.237 7.943 6.935 6.514 6.136 5.492 4.964 Period 28 24.31621 281 18.764 16.663 14.898 13.406 12.13711.051 10.116 9.307 7.984 6.961 6.534 6.152 5,502 4.970 Period 29 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.1989.3708.022 6.993 6.551 6.166 5.510 4.975 Perlod 30 25,808 22.396 19.600 17.292 15.372 13.765 12:409 11 258 10.274 9.427 8.0557.003 6.566 6.177 5.517 4.979 Period 40 32.835 27 355 23.115 19.793 17.159|15.046 13.332 11.925 10.757 9.779 8.244 7.105 6.642 6.233 5.548 4.997 Period 50 39.1961 31.42425.730 1 21.482 118 256 115.7621 13.801 | 12 233 110.9621 9.915 I 8.304 7.133 6.661 6.246 5.554 1 4999 Print Done Read the requirements. Requirement 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. (E negative net present value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A: Net Cash Annuity PV Factor Present Years Inflow (i=12%, n=7) Value 1-7 Present value of annuity 0 Investment Net present value of Project A Read the requirements Calculate the NPV of Project B Project B: Net Cash Inflow Annuity PV Factor (-10%, 09) Present Value Years 1.9 Present value of annuity Investment Net present value of Project B Requirement 2. What is the maximum acceptable price to pay for each project? Maximum Read the tuitements Requirement 2. What is the maximum acceptable price to pay for each project? Maximum Acceptable Price Project Project B Requirement 3. What is the profitability index of each project? (Round to two declistal places. X.XX.) 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 eth project. Profitability Index Project Project B Choose from any list of enter any number in the input fields and then continue to the next