Use the NPV method to determine whether Preston Products should invest in the following projects: Project A costs $275,000 and offers seven annual net cash inflows of $64,000. Preston Products requires an annual return of 12% on projects like A. Project B costs $380,000 and offers ten annual net cash inflows of $69,000. Preston Products demands an annual return of 14% on investments of this nature. (Click the icon to view the present value annuity table.) 5 (Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) 9 (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 $ 0 . 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 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 18% 0.847 1.566 2.174 2.690 3.127 2.673 3.546 3.170 2.798 5.242 6.002 6.733 7.435 8.111 5% 6% 8% 10% 12% 0.952 0.943 0.926 0.909 0.893 1.859 1.833 1.783 1.736 1.690 2.723 2.577 2.487 2.402 3.465 3.312 3.037 4.329 4.212 3.993 3.791 3.605 5.076 4.917 4.623 4.355 4.111 5.786 5.582 5.206 4.868 4.564 6.463 6.210 5.747 5.335 4.968 7.108 6.802 6.247 5.759 5.328 7.722 7.360 6.710 6.145 5.650 8.306 7.887 7.139 6.495 5.938 8.863 8.384 7.536 6.814 6.194 9.394 8.853 7.904 7.103 6.424 9.899 9.295 8.244 7.367 6.628 10.380 9.712 | 8.559 7.606 6.811 12.462 11.470 9.818 8.514 7.469 14.094 12.783 10.675 | 9.077 7.843 15.372 13.765 11.258 | 9.427 | 8.055 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 3.274 3.685 4.039 4.344 4.607 4.833 3.889 4.288 4.639 4.946 5.216 5.795 5.601 5.417 6.728 6.472 6.230 7.652 7.325 7.020 8.566 8.162 7.786 8.983 8.530 10.368 9.787 9.253 11.255 10.575 9.954 12.134 11.348 10.635 13.004 12.106 11.296 13.865 12.849 11.938 18.046 16.351 14.877 22.023 19.523 17.413 25.808 22.396 19.600 3.498 3.812 4.078 4.303 4.494 8.760 9.385 9.986 10.563 11.118 13.590 15.622 17.292 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 5.008 5.092 5.353 5.467 5.517 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 6.623 6.873 5.929 6.097 6.177 Periods 12% 1.000 2.030 3.091 4.184 5.309 1% 2% 1.000 1.000 2.010 2.020 3.030 3.060 4.060 4.122 5.101 5.204 6.152 6.308 7.214 8.286 8.583 9.369 9.755 10.462 10.950 11.567 12.169 12.683 13.412 13.809 14.680 14.947 15.974 16.097 17.293 22.019 24.297 28.243 32.030 34.785 40.568 48.88660.402 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 7.434 6.468 7.662 8.892 10.159 11.464 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 24.215 27.975 21.579 23.276 27.152 31.772 33.066 36.786 45.762 57.275 47.727 54.865 73.106 98.347 66.439 79.058 113.283 164.494 120.800 154.762259.057 442.593 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 14% 16% 18% 20% 1.000 1.000 1.000 1.000 2.140 2.160 2.180 2.200 3.440 3.506 3.572 3.640 4.921 5.066 5.215 5.368 6.610 6.877 7.154 7.442 8.536 8.977 9.442 9.930 10.730 11.414 12.142 12.916 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 23.045 25.733 28.755 32.150 27.271 30.850 34.931 39.581 32.089 36.786 42.219 48.497 37.581 43.672 50.818 59.196 43.842 51.660 60.965 72.035 91.025 115.380 146.628 186.688 181.871 249.214 342.603 471.981 356.787 530.312790.948 1,181.882 1,342.025 2,360.757 4,163.213 7,343.858 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 20.655 24.133 28.029 32.393 37.280 72.052 133.334 241.333 767.091 26.870 36.459 47.575 75.401 Present Value of $1 Periods 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.673 0.610 0.552 0.453 6 8 4% 5% 0.962 0.952 0.925 0.907 0.8890.864 0.855 0.823 0.822 0.784 0.790 0.746 0.760 0.711 0.731 0.677 0.703 0.645 0.676 0.614 0.650 0.585 0.625 0.557 0.601 0.530 0.577 0.505 0.555 0.481 0.456 0.377 0.375 0.295 0.308 0.231 0.208 0.142 6% 8% 0.943 0.926 0.890 0.857 0.840 0.794 0.792 0.735 0.747 0.681 0.705 0.630 0.665 0.583 0.627 0.540 0.5920.500 0.558 0.463 0.527 0.429 0.497 0.397 0.469 0.368 0.442 0.340 0.417 0.315 0.312 0.215 0.233 0.146 0.174 0.099 0.097 0.046 12% 14% 16% 0.893 0.877 0.862 0.797 0.769 0.743 0.712 0.675 0.641 0.636 0.592 0.552 0.567 0.519 0.476 0.507 0.456 0.410 0.452 0.400 0.354 0.4040.3510.305 0.361 0.308 0.263 0.322 0.227 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.149 0.092 0.057 0.022 18% 20% 0.847 0.833 0.7180.694 0.6090.579 0.516 0.437 0.402 0.370 0.335 0.314 0.279 0.266 0.233 0.225 0.194 0.191 0.162 0.162 0.135 0.1370.112 0.116 0.093 0.099 0.078 0.084 0.065 0.037 0.026 0.0160.010 0.007 0.004 0.001 0.001 12 13 14 0.896 0.887 0.879 0.870 0.861 0.820 0.780 0.742 0.672 0.722 0.701 0.681 0.661 0.642 0.554 0.478 0.412 0.307 0.287 0.237 0.257 0.208 0.229 0.182 0.205 0.160 0.183 0.140 0.104 0.073 0.059 0.038 0.033 0.020 0.0110.005 0.195 0.168 0.145 0.125 0.108 0.051 0.024 0.012 0.003 20 25 30 40 Future Value of $1 Periods 2% 1% 1.010 18% 1.180 1.392 1.020 4% 1.040 1.082 1.125 1.020 1.040 1.061 1.082 1.104 5% 1.050 1.103 1.158 1.216 1.276 1.030 1.041 1.051 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 6% 1.060 1.124 1.191 1.262 1.338 8% 11.080 1.166 1.260 1.360 1.469 1.643 10% 1.100 1.210 1.331 1.464 1.611 1.217 12% 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 1.062 1.072 1.083 1.094 1.105 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 1.772 1.949 2.144 2.358 2.594 2.853 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.411 5.117 5.936 6.886 7.988 9.266 19.461 40.874 85.850 378.721 1.939 2.288 2.700 3.185 3.759 4.435 5.234 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 38.338 95.396 237.376 1,469.772 1.116 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 1.486 1.641 1.811 2.208 1.539 3.138 1.127 1.138 1.384 1.426 1.469 1.513 1.558 1.806 2.937 1.149 1.161 1.220 1.282 1.348 1.489 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4.322 7.040 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 3.172 1.898 2.012 2.133 2.261 2.397 3.207 4.292 5.743 10.286 3.479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 93.051 3.452 3.797 4.177 6.727 10.835 17.449 45.259 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 6.176 7.288 8.599 10.147 11.974 27.393 62.669 143.371 750.378 2.094 4.661 6.848 10.063 21.725 2.427 3.262