Use the NPV method to determine whether Rouse Products should invest in the following projects: Project A costs $270,000 and offers seven annual net cash inflows of $61,000. Rouse Products requires an annual return of 12% on projects like A. Project B costs $375,000 and offers ten annual net cash inflows of $71,000. Rouse Products demands an annual return of 10% on investments of this nature. (Click the icon to view the present value annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) (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 X Reference 16, E12-29A (SI. Part 1 of 4 Reference projects like A. estments of this nature. asent values.) Future Value of $1 Periods 1% 2% % 3% 4% 5% 6% 8% 10% 12% 8 % 14% 16% 18% 20% Period 1 1.010 1.020 1030 1.040 1.050 1.050 1.030 1.100 1.120 1.140 1.100 1.180 1.200 Period 2 1.020 1.040 1.031 1.052 1.100 1.124 1.168 1.210 1.254 1.300 1.346 1.392 1.440 Period 3 1.090 1.061 1.095 1.125 1.158 1.191 1.250 1.331 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.052 1.128 1.170 1.216 1.282 1.390 1.484 1.574 1 68s 1.811 1999 2.074 Period 5 1051 1.104 1.159 1.217 1.276 1.338 1.489 1.611 1.762 1.926 2100 2200 2 2480 Period 6 1.052 1.125 1.194 1.265 1.340 1419 1.537 1.772 1.974 2.195 2.436 2700 2.986 Period 7 1.072 1.149 1.230 1.318 1.407 1504 1714 1.949 2211 2.502 2828 3.165 3.583 Period & 1.083 1.1721.287 1.389 1.477 1.594 1.851 2.144 2.478 28593270 3759 4.300 Period 9 1.094 1.195 1.305 1421 1.551 1.889 1.999 2.358 2.773 3252 3803 4.435 5.180 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.5943108 3.707 4411 5234 6192 Period 11 1.116 1.243 1.384 1.539 1.710 1.710 1.898 2.332 2.853 3.479 4226 5.117 6176 7.430 Perlod 12 1.127 1.12T 1.268 1426 1.601 1.796 2.012 2.518 3.138 3.896 4818 5.966 7.288 8.918 Period 13 1.138 1.294 1.469 1.556 1.886 2.133 2.720 3.452 3.452 4.363 5.492 6.886 8.599 10.689 Period 14 1.149 1.319 1513 1.732 1.950 2.251 2.937 3.797 4.887 5.261 7.98 10.147 12.839 Period 15 1.161 1.346 1.558 1.301 2.079 2.397 3.172 4.177 5.474 7.138 9268 11.974 15.407 Perlod 20 1.220 1.220 1.4861.806 2.191 2,653 3.207 4.851 6.727 8.646 13.743 19.461 27.383 38.338 Period 25 1.282 1.641 2.091 2.636 3.386 4.292 6.848 10.83517.000 25.46240874 62.669 96.395 Perlod 30 1348 1.811 2.427 9413 3.243 4.322 5.743 10.063 17.449 29.850 50.86085850 143.371 237.375 . Period 40 1.489 2.208 3.252 4.801 7.040 1028 21.725 45.259 89.051 183.884 378.721 750.378 1.469.772 Future Value of Annulty of $1 Periods 1% 2% 3% 3X 4X 95 6% BX 10% 12% 14% % 16% 18% 20 Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.0 Period 2 2010 2.020 2.030 2040 2050 2060 2.080 2.100 2.120 2.140 2.160 2.180 2.Z Period 3 3.030 3.00 3.091 3122 3.153 3.184 3.24 3.310 3.374 3.440 3.506 3.572 3.6 Period 4 4.080 4.122 4.1844.248 4310 4.375 4.508 4.641 4.779 4.921 5.088 5.215 5.3 Period 5 6.101 5.204 5.209 5.309 5.416 5528 5.897 5.087 5637 6.105 8.353 8.810 8.877 7.154 7,4 Period 8 6.152 6.308 6.152 6.308 6.453 6.633 5.802 6.4836.833 5.802 6.975 7.333 7.716 8.115 . 8.53 8.977 9.442 9.E Period 7 7.214 7.434 7 7.882 ZABR 8.1422394 7.898 8.923 9.487 10.066 10.730 11.414 12.142 12. Period 8 8.20 8.583 8 8.8929.21495499.897 10.637 11.438 12.300 1323 14.240 15.327 184 Period 9 9.389 9.755 10.159 10.583 11.027 11.491 12.483 13.579 14.778 16.045 17.519 19.088 20. Period 10 10.482 10.950 11.484 12.008 1257 13. 101 14.497 15.937 17549 19.337 21.321 23.521 25. Period 11 11.567 12.169 12.008 13.486 14207 14.972 16.645 18.531 20.600 23.045 25.733 28.766 32. Period 12 12.683 13.412 14.192 15.025 15817 16.870 18.877 21.384 24.139 27 271 30.850 34.931 39. Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.485 24.523 28.029 32.069 35.786 42.219 48. Period 14 14.84715.974 17.0BS 18.29219.599 21.015 24.215 27.975 32.393 37 581 43.572 50.818 59. Period 15 16.097 17.283 18.599 20.024 21.578 23.278 27.152 31.772 37 280 23.842 51.860 60.966 72. . Period 20 22.019 24.297 26.870 29.778 33.CEG 36.786 45.762 57.275 72.062 81.025 115 380 145.628 186. Period 25 28.243 32.030 36.459 41.646 | 47.727 51.865 73.105 98.347 133.334 181871 249.214 342.603 471 Period 30 34.785 40.563 47.575 56.085 55.439 79.05B 113.283 164.491 241.333 355.787 530.312 790.918 1,181 Parind a RRR 60 12 75.01 1852 120 151 782 2SA 057 442.5947870611 312.025.730 757 183213732 an 18. 80 - X Reference Reference Present Value of Annuity of $1 Periods 1% 2% 4% 5% 6% 8% % 6 10% 12% 14% 1696 18% 20% Period 1 0.990 0900 0.971 0.982 0.952 0943 0.928 09090.493 0.877 0.952 0847 0.833 Period 2 1970 1942 1913 1.898 1859 1830 1.783 1.728 1.890 1847 1.805 1566 1.528 Period 3 2941 2884 2.8292.775 2.723 2673 2577 2.4e7 2.402 2.322 2.246 2.174 2.106 Period 4 3902 3800 3.717 3.630 3.546 3.486 3312 3.170 3.037 2.914 2.798 2.660 2.589 Period 4.853 4.713 4.580 4.452 4.3294212 3.993 3.781 3.605 3.483 3.274 3.127 2.991 Period 6 5.795 5601 5417 5.2425.0764917 4623 4365 4.111 3.500 3.885 3.49 2.328 Period 76.729 6.472 6.230 6.002 5.796 5582 5208 48684584 4 288 4.639 38123.805 Period 8 7.652 7.325 7.0206.733 6.483 6210 5.747 5395 4.968 4639 4,344 40783.837 Period 9 8.568 8.162 7.786 7.435 7.108 6.802 6247 5.759 5.328 4346 4.807 4303 4.031 Period 10 9.471 8.983 8.530 8.111 7.7227.380 6.710 6.145 5.6505.216 4.833 4494 4.192 Period 11 10.368 9.787 9.253 8.780 8.308 7.887 7.139 5.495 5.938 5.453 5.029 4656 4.327 Period 12 11.255 10.575 9.954 9.3858.883 3.384 7.536 8.8146.192 5.880 5.197 2.793 4.439 Period 13 12 134 11.348 10.838 9.988 9.394 3.8587904 7.103 6.424 5.842 5.342 4910 4.533 Period 14 13.004 12 108 11296 10.5839.099 9.295 8 244 7387 6.628 8.002 5.468 5.000 4.811 Period 15 13.885 12849 11.90 11.119103909.712 8569 7 608 6811 8.142 5.575 5.062 5.062 4.875 Period 20 18.048 16.351 14.87713.590 12.46211470 9.818 8.514 7.469 5.678 5.929 5.363 4.870 Period 25 22.023 19.523 17.21315.622 14.094 12.78 10.675 9.077 7.843 8.873 8.097 5.467 Perind 25 ANR 2234R Al-7292115872 1873 11 25 9 497 A055 70 R 177 14 R 5517 4979 Present Value of 51 Periods 1% 2% 3% 4% % 2 5% 5% 6% 8% 10% 12% 14% 16% 10% 20% % 18 % Period 1 09900980 0.971 0.962 0.962 0.952 0.943 0.925 0.925 0.009 0.883 0.877 0.862 0.847 0833 Period 2 0.980 0.561 0.943 0.925 0.007 0.890 0.857 0.025 0.797 0.769 0.743 0.718 0.594 2 Period 3 0.971 0942 0.915 0.889 0.884 0.840 0.794 0.751 0.712 0.875 0.875 0.641 0.609 0.579 Period 4 0.96 0.24 0888 0856 0.823 0.792 0.735 0.883 0.838 0.592 0.552 0516 0.482 Periods 0.9610.900.868 067 0.784 0.747 0.881 0.82 0.821 0.587 0.519 0.478 0.437 0.402 periode 0.942 0888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.45 0.410 0.370 0.335 Period 7 0933 0.871 0.87+0.813 0.813 0.750 0.711 0.885 0.885 0.583 0.513 0.452 0.400 0.354 0.354 03140279 Period 8 0.928 0853 0.78 0.731 0.877 0.827 & 0.731 0.877 0.827 0.540 0.467 0.404 0.351 0.305 0268 0233 Period 9 09140837 0.7680.700 0.845 0.592 0.500 0.424 0.381 0.20 0.283 0225 0.194 Period 10 0905 0.820 0.744 0678 0.614 0.558 0.483 0.398 0.322 0.2700227 0.19 0.162 Perlod 110.896 0804 0.722 0.680 0.586 0.527 0.429 0.350 0.287 0237 0.1950 162 0.135 Perlod 12 0887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.257 0.20901680.137 0.112 Perlod 13 0878 0.773 0.681 0.601 0.530 0.459 0.358 0.290 0.229 0.182 0.145 0.116 0.088 Period 1408700.758 0.661 0.577 0.505 0.442 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.542 0.743 0.642 0.556 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Perlod 20 0820 0673 0.564 0.456 0.37 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Perlod 20.780 0610 0.478 0.375 0.296 0.233 0.146 0.092 0.059 0.038 0.024 0.0160.010 Perlod 30 0.742 0.562 0.412 0.308 0.231 0.174 0.039 0.057 0.033 0.0200.012 0.007 0.004 Period 401 0.672 0.453 0.307 0.208 0.142 0.097 0.097 0.045 0.022 0.011 0.005 0.003 0.001 0.001 me solve 4.948 Use the NPV method to determine whether Rouse Products should invest in the following projects: Project A costs $270,000 and offers seven annual net cash inflows of $61,000. Rouse Products requires an annual return of 12% on projects like A. Project B costs $375,000 and offers ten annual net cash inflows of $71,000. Rouse Products demands an annual return of 10% on investments of this nature. (Click the icon to view the present value annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) (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 X Reference 16, E12-29A (SI. Part 1 of 4 Reference projects like A. estments of this nature. asent values.) Future Value of $1 Periods 1% 2% % 3% 4% 5% 6% 8% 10% 12% 8 % 14% 16% 18% 20% Period 1 1.010 1.020 1030 1.040 1.050 1.050 1.030 1.100 1.120 1.140 1.100 1.180 1.200 Period 2 1.020 1.040 1.031 1.052 1.100 1.124 1.168 1.210 1.254 1.300 1.346 1.392 1.440 Period 3 1.090 1.061 1.095 1.125 1.158 1.191 1.250 1.331 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.052 1.128 1.170 1.216 1.282 1.390 1.484 1.574 1 68s 1.811 1999 2.074 Period 5 1051 1.104 1.159 1.217 1.276 1.338 1.489 1.611 1.762 1.926 2100 2200 2 2480 Period 6 1.052 1.125 1.194 1.265 1.340 1419 1.537 1.772 1.974 2.195 2.436 2700 2.986 Period 7 1.072 1.149 1.230 1.318 1.407 1504 1714 1.949 2211 2.502 2828 3.165 3.583 Period & 1.083 1.1721.287 1.389 1.477 1.594 1.851 2.144 2.478 28593270 3759 4.300 Period 9 1.094 1.195 1.305 1421 1.551 1.889 1.999 2.358 2.773 3252 3803 4.435 5.180 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.5943108 3.707 4411 5234 6192 Period 11 1.116 1.243 1.384 1.539 1.710 1.710 1.898 2.332 2.853 3.479 4226 5.117 6176 7.430 Perlod 12 1.127 1.12T 1.268 1426 1.601 1.796 2.012 2.518 3.138 3.896 4818 5.966 7.288 8.918 Period 13 1.138 1.294 1.469 1.556 1.886 2.133 2.720 3.452 3.452 4.363 5.492 6.886 8.599 10.689 Period 14 1.149 1.319 1513 1.732 1.950 2.251 2.937 3.797 4.887 5.261 7.98 10.147 12.839 Period 15 1.161 1.346 1.558 1.301 2.079 2.397 3.172 4.177 5.474 7.138 9268 11.974 15.407 Perlod 20 1.220 1.220 1.4861.806 2.191 2,653 3.207 4.851 6.727 8.646 13.743 19.461 27.383 38.338 Period 25 1.282 1.641 2.091 2.636 3.386 4.292 6.848 10.83517.000 25.46240874 62.669 96.395 Perlod 30 1348 1.811 2.427 9413 3.243 4.322 5.743 10.063 17.449 29.850 50.86085850 143.371 237.375 . Period 40 1.489 2.208 3.252 4.801 7.040 1028 21.725 45.259 89.051 183.884 378.721 750.378 1.469.772 Future Value of Annulty of $1 Periods 1% 2% 3% 3X 4X 95 6% BX 10% 12% 14% % 16% 18% 20 Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.0 Period 2 2010 2.020 2.030 2040 2050 2060 2.080 2.100 2.120 2.140 2.160 2.180 2.Z Period 3 3.030 3.00 3.091 3122 3.153 3.184 3.24 3.310 3.374 3.440 3.506 3.572 3.6 Period 4 4.080 4.122 4.1844.248 4310 4.375 4.508 4.641 4.779 4.921 5.088 5.215 5.3 Period 5 6.101 5.204 5.209 5.309 5.416 5528 5.897 5.087 5637 6.105 8.353 8.810 8.877 7.154 7,4 Period 8 6.152 6.308 6.152 6.308 6.453 6.633 5.802 6.4836.833 5.802 6.975 7.333 7.716 8.115 . 8.53 8.977 9.442 9.E Period 7 7.214 7.434 7 7.882 ZABR 8.1422394 7.898 8.923 9.487 10.066 10.730 11.414 12.142 12. Period 8 8.20 8.583 8 8.8929.21495499.897 10.637 11.438 12.300 1323 14.240 15.327 184 Period 9 9.389 9.755 10.159 10.583 11.027 11.491 12.483 13.579 14.778 16.045 17.519 19.088 20. Period 10 10.482 10.950 11.484 12.008 1257 13. 101 14.497 15.937 17549 19.337 21.321 23.521 25. Period 11 11.567 12.169 12.008 13.486 14207 14.972 16.645 18.531 20.600 23.045 25.733 28.766 32. Period 12 12.683 13.412 14.192 15.025 15817 16.870 18.877 21.384 24.139 27 271 30.850 34.931 39. Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.485 24.523 28.029 32.069 35.786 42.219 48. Period 14 14.84715.974 17.0BS 18.29219.599 21.015 24.215 27.975 32.393 37 581 43.572 50.818 59. Period 15 16.097 17.283 18.599 20.024 21.578 23.278 27.152 31.772 37 280 23.842 51.860 60.966 72. . Period 20 22.019 24.297 26.870 29.778 33.CEG 36.786 45.762 57.275 72.062 81.025 115 380 145.628 186. Period 25 28.243 32.030 36.459 41.646 | 47.727 51.865 73.105 98.347 133.334 181871 249.214 342.603 471 Period 30 34.785 40.563 47.575 56.085 55.439 79.05B 113.283 164.491 241.333 355.787 530.312 790.918 1,181 Parind a RRR 60 12 75.01 1852 120 151 782 2SA 057 442.5947870611 312.025.730 757 183213732 an 18. 80 - X Reference Reference Present Value of Annuity of $1 Periods 1% 2% 4% 5% 6% 8% % 6 10% 12% 14% 1696 18% 20% Period 1 0.990 0900 0.971 0.982 0.952 0943 0.928 09090.493 0.877 0.952 0847 0.833 Period 2 1970 1942 1913 1.898 1859 1830 1.783 1.728 1.890 1847 1.805 1566 1.528 Period 3 2941 2884 2.8292.775 2.723 2673 2577 2.4e7 2.402 2.322 2.246 2.174 2.106 Period 4 3902 3800 3.717 3.630 3.546 3.486 3312 3.170 3.037 2.914 2.798 2.660 2.589 Period 4.853 4.713 4.580 4.452 4.3294212 3.993 3.781 3.605 3.483 3.274 3.127 2.991 Period 6 5.795 5601 5417 5.2425.0764917 4623 4365 4.111 3.500 3.885 3.49 2.328 Period 76.729 6.472 6.230 6.002 5.796 5582 5208 48684584 4 288 4.639 38123.805 Period 8 7.652 7.325 7.0206.733 6.483 6210 5.747 5395 4.968 4639 4,344 40783.837 Period 9 8.568 8.162 7.786 7.435 7.108 6.802 6247 5.759 5.328 4346 4.807 4303 4.031 Period 10 9.471 8.983 8.530 8.111 7.7227.380 6.710 6.145 5.6505.216 4.833 4494 4.192 Period 11 10.368 9.787 9.253 8.780 8.308 7.887 7.139 5.495 5.938 5.453 5.029 4656 4.327 Period 12 11.255 10.575 9.954 9.3858.883 3.384 7.536 8.8146.192 5.880 5.197 2.793 4.439 Period 13 12 134 11.348 10.838 9.988 9.394 3.8587904 7.103 6.424 5.842 5.342 4910 4.533 Period 14 13.004 12 108 11296 10.5839.099 9.295 8 244 7387 6.628 8.002 5.468 5.000 4.811 Period 15 13.885 12849 11.90 11.119103909.712 8569 7 608 6811 8.142 5.575 5.062 5.062 4.875 Period 20 18.048 16.351 14.87713.590 12.46211470 9.818 8.514 7.469 5.678 5.929 5.363 4.870 Period 25 22.023 19.523 17.21315.622 14.094 12.78 10.675 9.077 7.843 8.873 8.097 5.467 Perind 25 ANR 2234R Al-7292115872 1873 11 25 9 497 A055 70 R 177 14 R 5517 4979 Present Value of 51 Periods 1% 2% 3% 4% % 2 5% 5% 6% 8% 10% 12% 14% 16% 10% 20% % 18 % Period 1 09900980 0.971 0.962 0.962 0.952 0.943 0.925 0.925 0.009 0.883 0.877 0.862 0.847 0833 Period 2 0.980 0.561 0.943 0.925 0.007 0.890 0.857 0.025 0.797 0.769 0.743 0.718 0.594 2 Period 3 0.971 0942 0.915 0.889 0.884 0.840 0.794 0.751 0.712 0.875 0.875 0.641 0.609 0.579 Period 4 0.96 0.24 0888 0856 0.823 0.792 0.735 0.883 0.838 0.592 0.552 0516 0.482 Periods 0.9610.900.868 067 0.784 0.747 0.881 0.82 0.821 0.587 0.519 0.478 0.437 0.402 periode 0.942 0888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.45 0.410 0.370 0.335 Period 7 0933 0.871 0.87+0.813 0.813 0.750 0.711 0.885 0.885 0.583 0.513 0.452 0.400 0.354 0.354 03140279 Period 8 0.928 0853 0.78 0.731 0.877 0.827 & 0.731 0.877 0.827 0.540 0.467 0.404 0.351 0.305 0268 0233 Period 9 09140837 0.7680.700 0.845 0.592 0.500 0.424 0.381 0.20 0.283 0225 0.194 Period 10 0905 0.820 0.744 0678 0.614 0.558 0.483 0.398 0.322 0.2700227 0.19 0.162 Perlod 110.896 0804 0.722 0.680 0.586 0.527 0.429 0.350 0.287 0237 0.1950 162 0.135 Perlod 12 0887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.257 0.20901680.137 0.112 Perlod 13 0878 0.773 0.681 0.601 0.530 0.459 0.358 0.290 0.229 0.182 0.145 0.116 0.088 Period 1408700.758 0.661 0.577 0.505 0.442 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.542 0.743 0.642 0.556 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Perlod 20 0820 0673 0.564 0.456 0.37 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Perlod 20.780 0610 0.478 0.375 0.296 0.233 0.146 0.092 0.059 0.038 0.024 0.0160.010 Perlod 30 0.742 0.562 0.412 0.308 0.231 0.174 0.039 0.057 0.033 0.0200.012 0.007 0.004 Period 401 0.672 0.453 0.307 0.208 0.142 0.097 0.097 0.045 0.022 0.011 0.005 0.003 0.001 0.001 me solve 4.948
