Use the NPV method to determine whether McKnight Products should invest in the following projects:

times	Project A costs $265,000 and offers seven annual net cash inflows of $65,000. McKnight Products requires an annual return of 12% on projects like A.
times	Project B costs $390,000 and offers nine annual net cash inflows of $72,000. McKnight Products demands an annual return of 10% on investments of this nature.

The present value annuity table:

The future value annuity table:

The present value table:

The future value table:

Requirement:

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 $: The NPV of Project B is $:

Now calculate the maximum acceptable price to pay for each project. (Round your answers to the nearest whole dollar.)

Project A is $:

Project B is $:

0 Reference cKnight annual annual annuity inuity tal Periods 12% 14% 16% 18% 20% 0847 10% 0909 1736 2487 3.170 1690 1566 1547 2322 2 174 3.800 3.465 3.312 maximu 4.580 5411 1528 2106 2589 2991 3.326 3.606 3.837 4.031 bur answ 15 4% 5% 6% 8% 0990 09800971 0.962 0.952 0.9430 926 1970 1.942 1.913 1886 1.859 1833 1.783 2.941 2.829 2775 2723 2673 2577 3.902 3.717 3.630 3.546 4.853 4.713 4.452 5.795 5.601 6.728 6.472 6.230 7652 7325 7.020 8566 8.162 7.786 7435 9.471 8.983 8530 8.111 103689.7879253 8.750 8.306 11 255 10.575 9.954 8863 12 134 11 348 10.635 9.9069.394 13.004 12 106 11 296 10.563 9.899 9.295 13885 12 849 11.938 11.118 10380 18.046 16.3511487713590 12.462 11 470 22 023 1952317413 15 622 1409412783 2239619.500 17.292 15 372 13.765 32 835 27355 23.115 19.793 17 159 15.046 11.925 9385 SA 6.424 6.628 6.002 6 142 8514 6.623 5353 6.873 5808 5457 5517 6548 4.675 4870 4943 2979 4997 9.779 20 en click Print Done Reference Periods 1 1000 1000 1000 2010 1.000 2040 3.122 4246 1000 2080 3184 2000 3.091 4184 5309 2100 3310 3030 4060 5.101 1000 2050 3.153 4310 5.526 6.802 8.142 1000 2000 3245 4506 5857 175 2541 5215 6.416 5837 6.152 6.469 7216 7662 8394 9549 8892 10 159 8288 9.369 10482 11.567 12883 13 09 1497 18097 124 1000 2020 3.000 4.122 5.204 6.300 7434 B 755 10.950 12.100 13.412 1480 1594 172 24293 32030 40566 6.633 7.090 214 10583 12.006 13.486 15020 11 027 12 578 14207 15 917 17 713 19500 21 579 1000 2120 3.374 4779 6105 6353 7715 8115 9487 10.089 11.436 12300 13579 14778 15 937 17549 20 855 21384 24 133 24523 27 975 31772 57 275 7722052 1234 134494241 442 593 787 0 6 975 7336 8.923 9 09710537 11.491 13.181 14487 1972 1813.45 16 870 18 977 1380221495 21015 24215 23 275 27 152 4512 54205 73156 1950 113253 14192 15% 1 000 1000 1000 1000 2140 2160 2100 2200 340 3.500 3572 360 4921 5065 5363 6,510 6.877 7.154 72 8536 8977 9.442 9930 10.730 11 414 12 142 12916 13233 14.240 15.121 15499 16.005 17519 1986 20799 19337 21321 23521 25.950 23.045 25730 28755 32 150 27 271 30 150 34931 39531 32000 42219 48 497 3753 50 313 5918 43842 80 9105 125 528 181371 249214 342 503 55715011001111 025 | 2017 | 2011 10292 2977 41 546 8543 47573 75 1 Done Reference Knight annual nnual nnuity nuity tall 5 10% 125 0.971 Periods 15 25 1 1 0.990 0.980 0.9800961 0.971 0.942 0.952 0:33 145 155 OBTO2 0.769 0743 0641 0.592 0564 0675 maxime 8888 2013 hen click a Print Check Al Reference - X 1020 1.020 1040 1051 1210 1 103 1 158 1030 1454 1061 1082 1 104 2074 1574 1041 1051 1150 1275 1062 1194 1340 1772 1949 230 1072 1083 1149 1.172 1.195 3582 4300 1207 2211 2.478 2.773 21 1094 5.150 1305 2352 1551 1629 3192 1219 2594 2953 3138 30 41 3913 1.489 5492 6251 1319 1990 2079 1373 13835 17 45219 9545 17 000 2900 9305 50250 193721 3 262 7040 Print Done