Use the NPV method to determine whether Smith Products should invest in the following projects: Project A costs $265,000 and offers eight annual net cash inflows of $56,000. Smith Products requires an annual return of 16% on projects like A Project B costs $380,000 and offers nine annual net cash inflows of $72,000. Smith Products demands an annual return of 14% on investments of this nature. (Click the icon to view the present value annuity table.) (Click the icon to view the future value annuity table.) Requirement (Click the icon to view the present value table.) (Click the icon to view the future value table.) What is the NPV of each project? What is the maximum acceptable price to pay for each project? nis 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 (S Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% Period 1 0.990 0.980 0.971 0.962 Period 2 1.970 1.942 1,913 1.886 1.859 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 6% 8% 10% 12% 14% 16% 18% 20% 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.833 1.783 1.736 1.690 1.647 2.322 2.246 1,605 1.566 1.528 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 Period 8 7.652 7.325 7.020 6.733 Period 9 8.566 8.162 7.786 7.435 Period 10 9.471 8.983 8.530 8.111 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.605 6.811 Period 20 18.046 16.351 14.877 13 590 12.462 11.470 9.818 8.514 7.469 Period 25 22.023 19.523 17 413 15.622 14.094 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17 292 15.372 13.765 11 258 9.427 8.055 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 5.842 6.142 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 7.108 6.802 6.247 5.759 5.328 7.722 7.360 6.710 6.145 5.650 5.216 4.946 4.607 4.303 4.031 4.833 494 3,192 5.453 5.029 4.656 4.327 5.660 5.197 4.793 4.439 5.342 4.910 4.533 6.002 5.468 5.008 4.611 5.575 5.092 4.675 6.623 5.929 5.353 4.870 6.873 6.097 5.467 4.948 7.003 6.177 5.517 4.979 7.105 6.233 5.548 4.997 Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 0.962 0.952 Period 2 0.980 0.961 0.943 0.925 0.907 Period 3 0.971 0.942 0.915 0.889 0.864 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 Present Value of $1 14% 16% 18% 20% 5% 6% 8% 10% 12% 0.943 0.926 0.909 0.893 0.877 0,862 0.847 0.833 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.683 0.636 0.592 0,552 0.516 0482 0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.564 0.507 0.456 0.513 0.452 0.400 0.410 0370 0.335 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.467 0.404 0.351 0.424 0.361 0.308 0.263 0.225 0.194 0 386 0.322 0.270 0.227 0.191 0.162 0.287 0.237 0.195 0.162 0.135 0.257 0.208 0.168 0.137 0.112 0.182 0.145 0.116 0.093 0.205 0.160 0.305 0.266 0.233 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 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 Period 30 0.742 0.552 0.412 0.308 0.231 Period 40 0.672 0.453 0.307 0.208 0.142 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.174 0.099 0.057 0.033 0.020 0.012 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.016 0.010 0.007 0.004 0.001 Future Value of Annuity of $1 Periods Period 1 1% 2% 3% 4% 5% 6% 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2010 2.020 2.030 2.040 2.050 2.060 Period 3 3.030 3.060 3.091 3122 3.153 Period 4 4.060 4.122 4.184 4.246 4.310 4.375 4.506 Period 5 5.101 5 204 5.309 5.416 5.526 5.637 5.867 8% 10% 12% 1.000 1.000 1.000 1.000 2.080 2.100 2120 3.184 3.246 3.310 3.374 3.440 4.641 4.779 4.921 5.066 6.105 6.353 6.610 6.877 7.154 14% 16% 18% 20% 1.000 1.000 1.000 2.140 2.160 2.180 2.200 3.506 3.572 3.640 5.215 5.368 7.442 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 Period 7 7.214 7434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 Period 8 8.286 8583 Period 9 9.369 9.755 Period 10 9.549 10.159 10.583 11.027 10 462 10.950 11.464 12.006 12.578 8.892 9.214 Period 11 11.567 12.169 12.808 13.486 Period 12 Period 13 Period 14 Period 15 12.683 13.809 14.947 13 412 14 680 16.097 Period 20 Period 25 Period 301 Period 40 10.637 11.436 12.300 12.488 13.579 13.181 14.487 15 937 14.207 14.972 16.645 18.531 20.655 14 192 15.026 15.917 16.870 18.977 21.384 24.133 15.618 16.627 17.713 18.882 21.495 24.523 28.029 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32 393 17 293 18.599 20.024 21.579 23.276 27.152 31.772 22.019 24 297 26.870 29.778 33.066 36 786 45.762 28 .243 32.030 36 459 41.646 47.727 54.865 73.106 34.785 40.568 47 575 56 085 66.439 79.058 113 283 48.886 60 402 75 401 95.026 120.800 154.762 259 057 9.897 11.491 13.233 14.240 15.327 16.499 14.776 16.085 17.519 19 086 20.799 17.549 19.337 21.321 23.521 25.959 23.045 25.733 28.755 32.150 27.271 30.850 34.931 39.581 32.089 36.786 42.219 48.497 37 280 37.581 43 842 43.672 50.818 59.196 51.660 60.965 72.035 57 275 72.052 91.025 115 380 146.628 186.688 98.347 133.334 181.871 164.494 241 333 356 787 530.312 442.593 767 091 1,342 025 249.214 790 948 1,181.882 2,360 757 4,163.213 7,343.858 342 603 471.981 Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 14% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 8% 10% 12% 16% 18% 20% 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.166 1.210 1.254 1.300 1.346 1.392 1.440 Period 31 1.030 1.061 1.093 1.125 Period 4 1.041 1.082 1.126 1.170 1.158 1.216 1.262 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.360 1.464 1.574 1.689 1.811 1.939 2.074 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 Period 6 1.062 1.126 1.194 1.265 Period 7 1072 1149 Period 8 1.083 Period 9 Period 10 1.094 1.230 1.316 1.172 1.267 1.369 1:195 1.305 1.423 1.504 1.469 1.587 1.714 1.611 1.762 1.925 2.100 2.288 2.488 1,105 1.219 1.344 1.480 1.340 1.419 1.407 1.477 1.594 1.851 2.144 2.476 2.853 1.551 1.689 1.999 2.358 2.773 1.629 1.791 2.159 1.772 1.974 2.195 2.436 2.700 1.949 2.211 2.502 2.826 2.986 3.185 3.583 3.278 3.759 4.300 3.252 3.803 4 435 5.160 2.594 3.106 3.707 4.411 5.234 6.192 Period 11 1.116 1.243 1.384 1.539 Period 12 1.127 1.268 1.426 Period 13 Period 14 1.138 1.294 1.469 1.149 1.319 1.513 Period 15 1.161 1346 1.558 1.710 1.898 1.601 1.796 2.012 1.665 1.886 2.133 1.732 1.980 2.261 1.801 2.079 2.397 2.332 3.479 4.226 4.818 2.853 2.518 3.138 3.896 2.720 3.452 4.363 5.492 2.937 3797 4.887 6.261 7.988 10.147 3.172 4.177 5.474 7.138 9.266 11.974 15.407 5.117 6.176 7.430 5.936 7 288 8.916 6 886 8.599 10.699 12.839 Period 20 1220 1,486 Period 25 1.282 1.641 Period 30 Period 401 1.348 1:489 1.805 2.191 2653 3207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 2.094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40 874 62.669 95.396 1.811 2.427 3.243 4.322 6.743 10.063 17 449 29.960 50.950 85.850 143.371 237.376 2.208 3.262 4.801 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772)