Use the NPV method to determine whether Preston Products should invest in the following projects: Project A costs $280,000 and offers seven annual net cash inflows of $63,000. Preston Products requires an annual return of 14% on projects like A. Project B costs $390,000 and offers ten annual net cash inflows of $71,000. Preston Products demands an annual return of 12% on investments of this nature. 5 (Click the icon to view the present value annuity table.) 5 (Click the icon to view the present value table.) 5 (Click the icon to view the future value annuity table.) 5 (Click the icon to view 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 $ (9,856) The NPV of Project B is $ 11,150 Now calculate the maximum acceptable price to pay for each project. (Round your answers to the nearest whole dollar.) Project A is $ Present Value of Annuity of $1 Periods | | 1% 0.990 1.970 2.941 3.902 4.853 2% 0.980 1.942 2.884 3.808 4.713 3% 0.971 1.913 2.829 3.717 4.580 4% 0.962 1.886 2.775 3.630 4.452 5% 16% 0.952 0.943 1.859 1.833 2.723 2.673 3.546 3.465 4.329 4.212 8% 0.926 1.783 2.577 3.312 3.993 10% 0.909 1.736 2.487 3.170 3.791 12% 0.893 1.690 2.402 3.037 3.605 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 4.355 4.868 5.795 6.728 7.652 8.566 9.471 5.601 6.472 7.325 8.162 8.983 5.242 6.002 6.733 8 w 3 o ovo own 5.417 6.230 7.020 7.786 8.530 5.076 5.786 6.463 7.108 7.722 4.917 5.582 6.210 6.802 7.360 4.623 5.206 5.747 6.247 6.710 4.111 4.564 4.968 5.328 5.650 5.335 5.759 6.145 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 7.435 3.326 3.605 3.837 4.031 4.192 8.111 10.368 11.255 12.134 13.004 13.865 9.787 10.575 11.348 12.106 12.849 9.253 9.954 10.635 11.296 11.938 8.760 9.385 9.986 10.563 11.118 8.306 8.863 9.394 9.899 10.380 7.887 8.384 8.853 9.295 9.712 7.139 7.536 7.904 8.244 8.559 6.495 6.814 7.103 7.367 7.606 5.938 6.194 6.424 6.628 5.453 5.660 5.842 6.002 6.142 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 4.327 4.439 4.533 4.611 4.675 5.008 6.811 5.092 18.046 22.023 25.808 32.835 16.351 19.523 22.396 27.355 14.877 17.413 19.600 23.115 13.590 15.622 17.292 19.793 12.462 14.094 15.372 17.159 11.470 12.783 13.765 15.046 9.818 10.675 11.258 11.925 8.514 9.077 9.427 9.779 7.469 7.843 8.055 8.244 6.623 6.873 7.003 7.105 5.929 5.353 6.097 5.467 6.1775.517 6.233 5.548 4.870 4.948 4.979 4.997 Future Value of Annuity of $1 Periods 3% 5% 6% 8% 14% 1.000 1% 1.000 2.010 3.030 4.060 5.101 2% 1.000 2.020 3.060 4.122 5.204 1.000 2.030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 1.000 2.050 3.153 4.310 5.526 1.000 2.060 3.184 4.375 5.637 1.000 2.080 3.246 4.506 5.867 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 20% 1.000 2.200 3.640 5.368 7.442 o o voo AWN 6.152 7.214 8.286 9.369 10.462 6.308 7.434 8.583 9.755 10.950 6.468 7.662 8.892 10.159 11.464 6.975 8.394 9.897 11.491 13.181 7.336 8.923 10.637 12.488 14.487 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 6.802 8.142 9.549 11.027 12.578 14.207 15.917 17.713 19.599 21.579 11.567 12.683 13.809 14.947 16.097 12.169 13.412 14.680 15.974 17.293 12.808 14.192 15.618 17.086 18.599 14.972 16.870 18.882 21.015 23.276 16.645 18.977 21.495 24.215 27.152 18.531 21.384 24.523 27.975 31.772 20.655 24.133 28.029 32.393 23.045 27.271 32.089 37.581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 37.280 22.019 28.243 34.785 48.886 24.297 32.030 40.568 60.402 26.870 36.459 47.575 75.401 29.778 41.646 56.085 95.026 33.066 47.727 66.439 120.800 36.786 54.865 79.058 154.762 45.762 73.106 113.283 259.057 57.275 98.347 164.494 442.593 72.052 133.334 241.333 767.091 91.025 181.871 356.787 1,342.025 115.380 249.214 530.312 2,360.757 146.628 342.603 790.948 4,163.213 186.688 471.981 1,181.882 7,343.858