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

View the projects. ${?}^8$

View the present value of $$1$ table. ${?}^9$

View the future value of $$1$ table. ${?}^{11}$

View the present value of annuity of $$1$ table. ${?}^{10}$

Requirement

View the future value of annuity of $$1$ table. ${?}^{12}$

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

$8$: Projects

Project A costs $$285,000$ and offers seven annual net cash inflows of $$65,000.$ Preston Products requires an annual return of $16\%$ on projects of this nature.

Project $B$ costs $$375,000$ and offers ten annual net cash inflows of $$66,000.$ Preston Products demands an annual return of $10\%$ on investments of this nature.

$9$: Present Value of $$1$