Use the NPV method to determine whether McKnight Products should invest in the following projects: Project A: Costs $270,000 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 10 annual net cash inflows of $76,000. McKnight Products demands an annual return of 10% on investments of this nature. E(Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Present Value of $1 table.) Read the requirements 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 Inflow (i12%, n-8) Years Value Present value of annuity 1 - 8 Investment 0 Net present value of Project A Calculate the NPV of Project B. Present Value of $1 10% Periods 3% 4% 5% 6% 7% 8% 9% 12% 14% 15% 16% 18% 20% 1% 2% 0.990 0.980 0.962 0.952 0.943 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 0.971 0.935 0.980 0.961 0.943 0.925 0.890 0.873 0.857 0.842 0.772 0.826 0.797 0.712 0.769 0.756 0.658 0.743 0.694 2 0.907 0.718 0.971 0,942 0.915 0.889 0.864 0.840 0.816 0.794 0.751 0.675 0.641 0.609 0.579 3 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 O.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 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 0.437 0.402 5 6 0.942 0.888 0.837 0.790 O.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.547 0.502 0.513 0.452 0.400 0.354 0.314 0.279 7 0.583 0.376 0.789 0.351 0.233 8 0.923 0.853 0.731 0.677 0.627 0.582 0.540 0.467 0.404 0.327 0.305 0.266 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 0.905 0.614 0.558 0.463 0.422 0.270 0.191 0.162 10 0.820 0.744 0.676 0.508 0.386 0.322 0.247 0.227 11 0.896 0.804 0.722 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 0.356 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.319 0.257 0.229 0.208 0.187 0.168 0.137 0.112 0.879 0.681 0.530 0.469 0.368 0.326 0.290 0.182 0.116 0.093 13 0.773 0.601 0415 0.163 0.145 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.861 0.642 0.239 0.183 0.140 0.065 15 0.743 0.555 0.481 0.417 0.362 0.315 0.275 0.123 0.108 0.084 0.853 0.728 0.458 0.394 0.339 0.107 0.071 16 0.623 0.534 0.292 0.252 0.218 0.163 0.123 0.093 0.054 Present Value of Ordinary Annuity of $1 Periods 2% 5% 8% 1% 3% 4% 6% 7% 9% 10% 12% 14% 15% 16% 18% 20% 0.980 0.952 0.833 1 0.990 0.971 0.962 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 1.913 1.886 1.833 2.673 1.736 1.647 1.626 1.528 2 1.970 1.942 1.859 1.808 1.783 1.759 1.690 1.605 1.566 2.941 2.723 2.402 2.322 2.283 2.246 2,884 2.829 2.775 2.624 2.577 2.531 2.487 2.174 2.106 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 4 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.127 2.991 5 3.274 3.326 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 6.728 6.230 6.002 5.582 5.033 4.868 4.288 4.639 3.812 7 6.472 5.786 5.389 5.206 4.564 4.160 4.039 3.605 7.652 7.020 6.463 6.210 4.078 3.837 7.325 6.733 5.971 5.747 5.535 5.335 4.968 4,487 4.344 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.494 4.192 10.368 9.787 11.255 10.575 11 4,327 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 12 8.863 8.384 8.853 7.536 6.814 5.660 5.421 4.793 4.910 4.439 4.533 9.954 9.385 7.943 7.161 6.194 5.197 13 9.394 7,487 7.103 5.842 5.583 12.134 11.348 10.635 9.986 8.358 7,904 6.424 5.342 13.004 12.106 11.296 10,563 13.865 12.84911.93811.118 10.380 14 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.611 15 9.712 8.061 7.606 6.811 6.142 5.092 4.675 9.108 8.559 5.847 5.575 13.578 12.561 11.652 10.83810.106 14.718 16 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730