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Use the NPV method to determine whether Root Products should invest in the following p Project A: Costs $290,000 and offers seven annual net cash

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Use the NPV method to determine whether Root Products should invest in the following p Project A: Costs $290,000 and offers seven annual net cash inflows of $56,000. Root Project B: Costs $395,000 and offers 9 annual net cash inflows of $70,000. Root Proc (Click the icon to view Present Value of $1 table.) (Click the icon to view Pres Read the requirements. Requirement 1. What is the NPV of each project? Assume neither project has a residual va value.) Caciulate the NPV (net present value) of each project. Begin by calculating the NPV of Proje Project A: Net Cash Pre Years Annuity PV Factor (i=12%, n=7) Inflow Val Present value of annuity 0 Investment Nel present value of Project A hould invest in the following projects: cash inflows of $56,000. Root Products requires an annual return of 12% on investments of this nature. inflows of $70,000. Root Products demands an annual return of 10% on investments of this nature. (Click the icon to view Present Value of Ordinary Annuity of $1 table.) neither project has a residual value. Round to two decimal places. (Enter any factor amounts to three decimal n by calculating the NPV of Project A. Annuity PV Factor (i=12%, n=7) Present Value Annuity PV Factor Present fields and then continue to the next question i Requirements 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. 2. What is the maximum acceptable price to pay for each project? 3. What is the profitability index of each project? Round to two decimal places. Print Done or Present ue to the next question. Use the NPV method to determine whether Root Products should invest in the following projects Project A Costs $290,000 and offers seven annual net cash inflows of $56,000. Root Products requires an annual return of 12% on investments of Project B. Costs $395,000 and offers 9 annual net cash inflows of $70,000. Root Products demands an annual return of 10% on investments of this (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 wurement 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 value) Caciulate the NPV (net present value) of each project Begin by calculating the NPV of Project A Present Net Cash Inflow Project A: Years 1.7 Present value of annuity 0 Investment Annuity PV Factor (112%, n=7) Value Net present value of Project A Calculate the NPV of Project B Proiect : Net Cash Annuity PV Factor Present Choose from any list or erlr any number in the input fields and then continue to the next question Redd uc Requirement 1. What is the NPV of each project? Assume neither project has a residual value. Round value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A: Net Cash Present Years Annuity PV Factor (i=12%, n=7) Inflow Value 1-7 Present value of annuity 0 Investment Net present value of Project A Calculate the NPV of Project B. Proiect B: Net Cash Annuity PV Factor Present hoose from any list or enter any number in the input fields and then continue to the next questic Calculate the NPV of Project B. Project B: Net Cash Presen Annuity PV Factor (i=10%, n=9) Years Inflow Value 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 Choose from any list or enter any number in the input fields and then continue to the next Project B. Costs $395,000 and offers 9 annual net cash inflows of $70,000. Root Products demands an annual retu (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity Read the requirements 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 Profitabil Project A Pmiect Choose from any list or enter any number in the input fields and then continue to the next question Present Value of Ordinary Annuity of $1 Penods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0 847 Period 2 1.970 1.942 1.913 1.886 1.859 1833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1.605 1.566 Period 3 2 941 2.884 2.8292775 2.723 2.673 2.624 2577 2.531 2.487 2.402 2.322 2 283 2.246 2.174 Period 4 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 Period 5 4853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 | 3.352 3.274 3.127 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.4864.355 4.111 3.889 3784 3.685 3.498 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4. 160 4.039 3.812 Period 8 7 652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.6394.487 4.344 4.078 Period 9 8.566 8.162 7.786 7435 7.108 6.802 6.515 6.247 5.9955.759 5.328 4.946 4.7724.607 4.303 Period 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 Period 11 10.36897879 253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5029 4656 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7536 7 1616.814 6.194 5660 5.421 5 197 4.793 Period 13 12.134 11.348 10.635 9.986 9.394 8.8538.358 7 904 74877.103 6.424 5.842 5.583 5.342 4910 Period 14 13.004 12 106 11,296 10 563 9.899 9.295 8.745 8.244 |7 786 7 367 6.628 6.002 5.724 5.468 5.008 Period 15 13 865 12.849 11.938 11.118 10 3809.712 9.108 8559 8061 7.606 6.811 6.142 5.847 5575 5.092 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.9746.265 5.954 5 669 5.162 Period 17 15.562 14 292 13.166 12 166 11 274 10.4771 9.763 9.122 8.544 8.022 7.1206.373 6.047 5.749 5 222 Print Done Lab 73 Personal Ex.docx Lab A Wellness Pru.docx Lab 7.4 Wellness Pp. docx IHH Present Value of $1 riods % 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% riod 1 0 990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 riod 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.8570.842 0.826 0.797 0.769 0.756 0.743 0.7180.694 riod 3 0.971 0.942 0.915 0.8890.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 riod 4 0.961 0.924 0.888 0.855 0.8230.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0482 riod 5 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 riod 6 0.942 0.888 0.837 0.790 0.746 | 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 | 0.370 0.335 riod 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 eriod 8 0.923 0.853 0.789 0.731 0.677 0.627 0.5820.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0233 eriod 9 0.914 0.837 0.766 0.703 0.6450.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 | 0.263 0.225 0 194 eriod 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 | 0.247 0.2270 191 0.162 eriod 11 0.896 0.804 0.722 0.650 0 585 0.527 0.75 0.429 0.3880 350 0.287 0.237 0.215 0 195 0.162 0.135 eriod 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 | 0.257 0.208 0.187 0.168 0.137 0.112 eriod 13 0.879 0.773 0.681 0.601 0 530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0093 eriod 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.2050.160 0.141 0.125 0.099 078 eriod 15 10.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.1400.123 0.108 0.0840065 eriod 16 0 853 0.728 0.623 0.534 0.458 0.394 0 3390 292 0.252 0218 0.163 0.123 0.1070093 0.071 0.054 eriod 17 0.844 0 714 0.605 0.513 0.436 0.371 0.317 0270 0 231 0 198 0.146 0.108 0.093 0.080 | 0.060 0.045 Print Done Lab Personal Ex doo Lb Wellness Pridocx Lab 7 4 Wellness Picocx

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