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Use the NPV method to determine whether Rouse Products should invest in the following projects: - Froject A : Costs $265,000 and offers eight annual
Use the NPV method to determine whether Rouse Products should invest in the following projects: - Froject A : Costs $265,000 and offers eight annual net cash inflows of $56,000. Rouse Products requires an annual return of 14% on investments of this nature. - Project B: Costs $390,000 and offers 9 annual net cash inflows of $75,000. 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 pla Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Palmelate the NDV if Prnient p Requirement 2 . What is the maximum acceptable price to pay for each project
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