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 Reference this n 3.640 Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 2 4 % 6 16% 18%20% Period 1 1.000 1.000 1.000 1.000 1000 1000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2.020 2.030 2040 2050 2.050 2.060 2.080 2.100 2.120 2.140 2. 160 2.180 2.200 Period 3 3.0303.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 Period 4 4.000 4.122 4.184 4.246 4310 4375 4.506 4.641 4.779 4921 5.068 5.215 5.368 Period 5 5.101 5.204 5309 5.416 54185528 5.528 5.637 5867 6.105 6.353 6.810 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.633 6.633 6.8026975 6.8026.9757.336 7.716 8.115 8.536 8.977 9.930 Period 7 7.214 7.434 7.662 7.898 8.142 8.142 8.394 8.923 8.9948923 9.487 10.089 10.730 11.414 12.142 12916 Period 8 8.286 8.583 8.892 921495499897 9.549 9.897 10.637 11.438 12.300 10.637 11.438 12300 13.233 14.240 15.327 16 499 Period 9 9.39 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.778 18.085 17.519 19.099 20.799 Period 10 10.462 10.950 11.464 12006 12.578 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 Period 11 11.667 12.16912808 13486 14207 14.972 16.645 18.531 20.655 23.045 25733 28.755 32.150 Period 12 12.663 13.412 14.192 15.026 15.917 18.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 37.581 | 43.672 50,818 59.196 Period 15 16.097 17.283 18.599 20.024 21.579 23.276 27.152 31.772 37280 43.842 51.860 60.965 72035 Period 20 22.019 24.297 26.870 29.778 33.056 35.786 45.762 57.275 72.052 91.025 115.380 146.628 186.688 Period 25 28.243 32.030 36.459 41.646 | 47.72754.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 Period 30 34.785 40.568 47.575 56.005 68.43979.058 113.283 184.494 241.333 356.787 530.312 530.312790.948 1,181.882 Period 40 48.888 60.402 75.401 95.028 120.800 154.762259.067 442.593 767 091 1,342.025 2.360.757 4 163.213 7,343.868 Present Value of $1 Periods 1% 29 3% 4% 5% 6% % 8% 10% 12% 14% 16% 18% 20% % Period 1 0.990 0.980 0.971 0.962 0.962 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0833 1 Period 20.960 0.981 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 2 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.735 0.683 0.636 0.592 0.552 0.516 0482 Period 5 0.951 0.906 0.963 0.922 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 60.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 70.933 0.871 0.013 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0452 0.400 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.4040.351 0.305 0.266 0.233 Period 90.914 0.837 0.766 9 0.703 0.845 0.592 0.500 0.424 0.381 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.678 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 110.896 0.8040.722 0.650 0.585 0.527 0429 0.350 0.287 0.237 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.200 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0489 0.368 0.290 0 229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 200.820 0.673 0.554 0.458 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.087 0.026 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 Period 30 0.742 0.552 0412 0.308 0.231 0.174 0.099 0.067 0.033 0.020 0.012 0.007 0.004 Period 40 0.672 0.453 0.307 0.200 0.142 0.097 0.046 0.022 0.0110.005 0.003 0.001 0.001 - X Reference Print Done Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 1 2 4 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 1.970 1,942 1.942 1.913 1.896 1.859 1.833 1.783 1736 1.690 1.647 1.647 1.605 1.605 1.566 1.528 Period 3 2.941 2.884 2.829 2.775 2.723 2.873 2.577 2.487 2402 2.322 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.548 3.465 3.312 3.170 3.037 2.914 2.798 2.890 2.589 Periods 4.853 4.7134.580 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 5.2425.078 4.917 4623 4.365 4.111 3.8893.885 3.498 3.498 3.328 Period 7 6.728 8.472 6.230 6.0025.786 5.582 5.208 4.868 4.584 4.288 4.039 3.812 3.805 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.958 4.639 4.344 4.078 3.837 Period 9 0.00 8.566 8.1627.786 74357.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4,031 4.607 Period 10 9.471 8.983 8.530 8.1117.722 7.360 6.710 6.145 5.650 5.216 4.833 4494 4.192 Period 11 10.358 9.787 9.253 8.760 8.308 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 12 11.255 10.575 9.954 9.3958.863 8.384 7.536 6.814 6.194 5.660 5.1974.793 4.439 Period 13 | 12.134 11.348 10.635 9.9969.394 8.853 7.904 7.103 6.424 5.842 5.342 4910 4.533 Period 14 13.004 12.108 11.298 10.563 9.899 9.295 8.244 7.367 6.628 8.002 5.468 5.008 4.611 Period 15 13.885 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 Period 2018.046 16.351 14.877 13.590 12.452 11.470 9818 8.514 7469 6.623 5.929 5.353 4.870 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 Period 30 25.808 22.398 19.600 17.292 15.372 13.765 11 258 9.427 8.055 7.003 6.1775.517 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 4.997 Future Value of $1 Periods 1% 2% % 3 3% 4% 5% 6% 8% 10% 12% % 6% B% % % 1496 16% 18% % % 20% Period 1 1,010 1.020 1.030 1.040 1.050 1.060 1.000 1.100 1.120 1.140 1.100 1.180 1.200 Period 2 1.020 1.040 1.061 1.062 1.103 1.124 1.166 1.1881.210 1.254 1.300 1 346 1.392 1.440 Period 3 1.030 1061 1.093 1.125 1.1581.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.082 1.126 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2074 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2488 Period 6 1.052 1.125 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2436 2.700 2986 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2211 2211 2.502 2826 3.185 3.583 Period 8 1,083 1.172 1.1721.267 1.369 1.477 1.594 1,851 2.144 2.144 2.476 2.853 2863 3.278 3.759 4.300 Period 9 1.094 1.195 1.305 1.423 1551 1.689 1.6891.999 1.999 2358 2.773 2.358 2.7733252 3.803 4.435 5.160 Period 10 1.105 1219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4411 5.234 6.192 Period 11 1.116 1213 1.384 1.539 1.710 1.898 2.332 2.653 3.479 2.853 3.479 4 226 51176.176 7.430 Period 12 1.1271 268 1426 1.601 1.796 2.012 2.518 3.138 3.896 4818 5.836 5.90 7.288 8.916 Period 13 1.138 1294 1.469 1.685 1.886 2.133 2.720 3.452 4.363 5.492 6.88 8.599 10.899 Period 14 1.149 1319 1513 1.732 1.960 2.261 2.937 3.797 4.887 6261 7.988 10.147 12.839 Period 15 1.161 1.346 1.568 1.801 2.079 2.079 2.397 2.397 3.172 3.172 4.177 5.474 7.138 9.266 11.974 15.407 Period 20 1.220 1.486 1.806 2.191 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38 338 Period 25 1 282 1.641 2094 2.666 3.388 4.292 6.848 10.835 17.000 28.462 40.874 62.669 96.396 Perlod 30 1.348 1.811 2427 3.243 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.374 237.376 Period 40 1.489 2208 3.262 4.801 7.040 10.285 21.725 45.259 93.051 188.884 378.721 750.378 1.469.772 Print Done Print Done