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 $52,000. McKnight Products requires an annual return of 12% on investments of this nature. Project B: Costs $380,000 and offers 9 annual net cash inflows of $70,000. McKnight Products demands an annual return of 10% 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. CR 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: Net Cash Annuity PV Factor Present Requirements Years Inflow (i=12%, n=8) Value 1-8 Present value of annuity 1. What is the NPV of each project? Assume neither project has residual 0 Investment value. Round to two decimal places. 2. What is the maximum acceptable price to pay for each project? Net present value of Project A 3. What is the profitability index of each project? Round to two decimal places. Calculate the NPV of Project B. Net Cash Annuity PV Factor Present Project B: Years Inflow (i=10%, n=9) Value Print Done 1-9 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 Requirement 3. What is the profitability index of each project? (Round to two decimal places, X.XX.) Select the formula, then enter the amounts to calculate the profitability index of each project. = Profitability Index Project A Project B