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Use the NPV method to determine whether Rouse Products should invest in the following projects: - Project A : Costs $270,000 and offers eight annual
Use the NPV method to determine whether Rouse Products should invest in the following projects: - Project A : Costs $270,000 and offers eight annual net cash inflows of $57,000. Rouse Products requires an annual return of 14% on investments of this nature. - Project B: Costs $400,000 and offers 10 annual net cash inflows of $72,000. Rouse Products demands an annual return of 12% 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 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
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