Use the NPV method to determine whether Rouse Products should invest in the following projects Next question Project A Costs $280,000 and offers seven annual net cash inflows of $54.000, Rouse Products requires an annual return of 12% on investments of this nature. Project 8: Costs $385,000 and offers 10 annual net cash inflows of $74,000. Rouse Products demands an annual return of 10% on investments of thin nature Click the icon to view Present Value of $1 table Click the icon to view Present Value of Ordinary Annuity of 51 tablo,) Read the regulaments value) Requirement 1. What is the NPV of each project? Assume neither project has a residual valus. Round to two decimal places: (Enter any factor amounts to three decimal places. Caciulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A Net Cash Annuity PV Factor Present (12% Value 1-7 Prosent value of annuity Years Inflow 0 Investment Net procent value of Project A Calculate the NPV of Project B. Project : Years 1 - 10 Present value of annuity Net Cash Present Annuity PV Factor (-10%, 10) inflow Value 0 Investment Net present value of Project 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. Profitability Index + Project A Project B X Present Value of $1 Periods 2% 3% 4% 5% 6% 7% B% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0,980 0.971 0.962 0,952 0.943 0.935 0.926 0917 0.909 0.893 0,877 0.870 0,862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.9070.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.7180.694 Period 3 0.971 0.942 0.915 0.8890.864 0.840 0.816 0.794 0.772 0.751 0.712 0.6750658 0.641 0.609 0.579 Period 4 0.961 0.9240,888 0.855 0.8230.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 Period 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 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.6660.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 Period 7 0.933 0.871 0813 0.760 0.7110.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 04040.351 0.327 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.5440.500 0.460 0424 0.361 0.308 0.284 0.263 0.225 0.194 Period 10 0.905 0.820 0.7440.676 0.614 0.558 0.5080463 0.422 0.3860.322 0.270 0.247 0.227 0.191 0.162 Period 11 0.896 0804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 Period 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 Period 13 0.879 0.773 0681 0.601 0530 0469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0,661 0.577 0,505 0.442 0.388 0,340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.5550481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.7280.623 0.534 04580.394 0.339 0.2020.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.7140605 0.513 0436 0.371 0.3170270 0.231 0.198 0.146 0.108 0.093 0.00000600045 Period 18 0.836 0.700 0.587 04940416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 Period 19 0.828 0.686 0.5700475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.003 0.070 0.060 0.043 0.031 Period 20 0.820 0.673 0.5540.456 0.377 0.3120.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 Period 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.13 0.093 0.064 0.053 0.044 0.031 0.022 Period 22 0.803 0.647 0.5220422 0.3420278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 Period 23 0.795 0.6340507 0.4060.3260.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0,033 0,022 0.015 Period 24 0.788 0.622 0492 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 Period 25 0.780 061004780375 0.295 0.233 0.184 0.146 0.116 0.092 0.0590.038 0.030 0.024 0.016 0.010 Period 26 0.772 0.598 0.464 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 Period 27 0.784 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0.023 0.018 0.0110.007 A sept ndex ts to AAA 20% Present Value of Ordinary Annuity of $1 Periods 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 0.833 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.6471.626 1.605 1.566 1.528 Period 3 2.941 2884 2.829 2775 2.723 2.673 2.624 2.577 2.531 2487 2.402 2.322 2283 2246 2.174 2.106 Period 4 3.902 3.806 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 2.589 Period 5 4,853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3433 3.352 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 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 3.605 Period 8 7.652 7.3257.020 6.733 6.463 6.210 5.971 5.747 5,535 5.335 4.968 4,639 4487 4,344 4.078 3.837 Period 9 8.566 8.162 7.788 7435 7.108 6.802 6.515 6.247 5,995 5.759 5.328 4.946 4.772 4.607 4,303 4.031 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 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7.8877499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4327 Period 12 11.255 10.5 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 4.793 4.439 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.8425.583 5342 4.910 4.533 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 4611 Period 15 13.865 12 849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 5.575 5.092 4.675 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9447 8.851 8.313 7.8246.974 6.265 5.954 5.669 5.162 4.730 Period 17 15.562 14 292 13.166 12.166 11.274 10.477 9763 9.122 8.544 8,022 7.120 6.373 6.047 5.749 5.222 4.775 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.0599.372 8.7568.201 7.250 6467 6.128 5.818 5.273 4.812 Period 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.198 5.877 5.316 4 844 Period 20 18.046 16351 14.877 13.590 12.462 11.470 10.5949.818 9.129 8.514 7.469 6.623 6.259 5,929 5.353 4.870 Period 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.6497.56266876.312 5.9735.384 4.891 Period 22 19.660 17.658 15.937 14.451 13.163 12.042 11.081 10.20194428.7727.645 6.743 6.359 6.011 5.410 4.909 Period 23 20.456 18.292 16.444 14,857 13.489 12.303 11.272 10.371 9.580 8.8837.718 6.792 6.3996.044 5.432 4925 Period 24 21 24318.914 16.936 15.247 13.799 12 550 11469 10.529 9.7078.9857.784 6.835 6.4346.0735.451 4.937 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.8736.464 6.097 5467 4.948 Period 26 2279520.121 17 877 15.983 14.375 13.003 11.826 10 8109.929 9.1617.896 6.906 6.491 6.118 5480 4956 Period 27 23.560 20.707 18.327 16,330 14.643 13.211 11,987 10.935 10.027 9.237 7.943 6.935 6.514 6.136 5492 4.964 AR ALLA Ann FA Allan RAS . 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