Use the NPV method to determine whether Rouse Products should invest in the following projects: I Question Project A: Costs $295,000 and offers eight annual net cash inflows of $53,000. Rouse Products requires an annual retum of 12% on investments of this nature. Project B: Costa $400,000 and offers 10 annual net cash inflows of $74,000. Rouse Products demands an annual retum of 10% on investments of this nature. (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 requirements. 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 to three decimal places, X.XXX. Use parentheses or a minus sign for a negative net present value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A: Net Cash Annuity PV Factor Present Years Inflow (1=12%, n=8) Value 1-8 Present value of annuity 0 Investment Net present value of Project A Calculate the NPV of Project B. Present Net Cash Inflow Annuity PV Factor (i=10%, n=10) Value Project B: Years 1 - 10 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 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 T Project B Requiremen for each project? Average amount invested Project A Average annual operating income Project B Initial investment Requiremen Select the for Present value of net cash inflows (Round to two decimal places, X.XX.) fitability index of each project. = Profitability Index Project A = Project B = Choose from any list or enter any number in the input fields and then continue to the next