Use the NPV method to determine whether Rouse Products should invest in the following projects: Next question Project A costs $275,000 and offers seven annual net cash inflows of $65,000. Rouse Products requires an annual return of 12% on projects like A Project B costs $385,000 and offers ten annual net cash inflows of $66,000. Rouse Products demands an annual return of 14% on investments of this nature. (Click the icon to view the present value annuity table.) (Click the icon to view the future value annuity table) Requirement (Click the icon to view the present value table.) (Click the icon to view the future value table.) 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 $ 21,660 The NPV of Project Bis $ (40,744) Now calculate the maximum acceptable price to pay for each project. (Round your answers to the nearest whole dollar) Project A is nnual net cash Reference annuity table.) nnuity table.) we maximum acc Periods Period 1 Period 21 Period 3 Period 4 Period 5 1% 0.990 1.970 2.941 3.902 4.853 your answers to Orice to pay for eac Present Value of Annuity of $1 3.498 3.326 3.812 3.605 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.823 4.355 4.111 3.889 3.685 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 4.078 3.837 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 4.494 4.192 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 6.142 5.575 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10 675 9.077 7.843 6.873 6.097 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 5.929 4.327 4439 4.533 4.611 5092 4.675 5353 4.870 5467 4.945 4.997 - X ether Rouse Products should invest in the following proiects s seven annual net ca rs ten annual net cash mt value annuity table.) value annuity table.)) Reference Next question That is the maximum acc (Round your answers to 21,660 40,744) optable price to pay for eac Present Value of $1 3% 4% 5% 6% Periods 1% 2% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0971 0.962 0.952 0.943 0.926 0909 0.893 0877 0862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0894 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0641 0.609 0579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0784 0.747 0.681 0.621 0.567 0.519 0476 0437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0456 0410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.065 0.583 0.513 0.452 0.400 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0582 0.500 0424 0.361 0308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0322 0.270 0.227 0191 0182 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0429 0.350 0287 0.237 0.196 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0497 0.397 0.319 0.257 0208 0168 0137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.003 Period 14 0870 0.758 0.661 0.577 0.505 0442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0417 0.315 0.239 0.183 0.140 0.108 0.064 2065 Period 20 0.820 0.673 0.564 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 002 Period 25 0.780 0.610 0.478 0.375 0.296 0.233 0.146 0.082 0.059 0.038 0024 001 0010 0.045 0.022 0.011 0.005 0.003 0.001 0.001 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0020 0012 0.007 0.004 0.208 0.142 0.097 Period 40 0.672 0.453 0.307 Drint Done annuity Future Value of Annuity of $1 s the maxim Periods Period 1 Period 2 Period 3 Period 4 1% 2% 3% 1.000 Period 5 5.101 5.204 und your ans Period 6 6.152 6.308 6.468 Period 7 7.214 7.434 6.802 8.142 60 Period 8 8.286 9.549 44). le price to pay 4% 5% 6% 8% 10% 12% 1.000 1,000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.309 5.416 5.637 5.526 5.867 6.105 6.353 6.610 6.633 7.336 6.975 7.716 8.115 8.977 8.536 10.730 11.414 12.142 8.394 8.923 9.487 10.089 7.662 7.898 14.240 15.327 8.583 8.892 9.214 9.897 10.637 11.436 12.300 9.369 Period 9 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 Period 10 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20 655 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 115.380 146.628 186.688 249.214 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 Period 20 342.603 471.981) Period 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 Period 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.382) Period 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767 091 1,342.025 2.360.757 4,163.213 7.343 858 14% 16% 1.000 18% 1.000 1.000 1,000 20% 2.140 2.160 2.180 2.200 3.506 3.572 3.640 5.066 5.215 5.368 7.154 7.442 6877 9.442 9.930 12.916 13.233 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 42219 48.497 37.581 43.672 50.818 59.196 51.660 60.965 72.035 Print Done en annual net resent value annuity ta uture value annuity table Reference Future Value of $1 t? What is the maximum Periods Period 1 1% 2% 3% 4% 1.010 Period 2 Period 3 Period 4 Period 5 1.030 1.020 1.040 1.061 1.030. 1.061 1.093 1.041 1.082 1.126 1.051 1.104 1.159 1.020 ject. (Round your answe Period 6 1,062 1.126 1.194 $ 21,660 Period 7 1.072 1.149 1.230 1.265 1.340 1419 1.587 1.772 1,316 1.407 1.504 1,714 1.949 5% 6% 8% 10% 12% 1,040 1.050 1.060 1.080 1.100 1.120 1.160 1.180 1.200 1.082 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 1.974 2.211 14% 1,140 16% 18% 20% 2.288 2.488 2.195 2.436 2.502 2.826 2.700 2.986 Period 8 1.083 1.172 1.267 $ (40,744) Period 9 1.094 1.195 1.305 Period 10 1.105 1.219 1.344 acceptable price to pay for Period 11 1.116 1.243 1.384 Period 12 1.127 Period 13 1.138 Period 14 1.149 1.268 1.426 1.294 1.469 1.319 1.513 Period 15 Period 20 Period 25 1.282 1.348 Period 30 1.489 Period 40 1.161 2.159 2.594 3.106 3.707 4.411 5.234 1.539 1.710 1.898 2.332 2.853 3.479 4.226 4.818 3.896 1.796 2012 2518 3.138 1.601 2.720 5492 3.452 4.363 1.665 1.886 2.133 1.732 1.980 2.261 6.261 2.937 3.797 4.887 5.474 3.172 4.177 7.138 1.801 2.079 2.397 1.346 1.558 2.653 3.207 4.661 1.806 2.191 6.727 9.646 13.743 19.461 27.393 38.338 1.220 1.486 3.386 2.666 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.395 1.641 2.094 1.811 2.427 3.243 4.322 5.743 10.063 17.449 29.960 50 950 85.850 143.371 237.376 3.262 2.208 4.801 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1.469.772 1.369 1.477 1.594 1.851 2.144 2478 2.853 3.278 1,423 1.551 1.689 1.999 2.358 2.773 1.480 1.629 1.791 3.185 3.759 4.300 3.252 3.803 4.435 3.583 5.160 6192 5.117 6.176 7.430 5.936 7.288 8.916 6.886 8.599 10.699 12.839 7.968 10.147 15.407 9.266 11.974