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Use the NPV method to determine whether Stenback Products should invest in the following projects: Project A: Costs $275,000 and offers seven annual net
Use the NPV method to determine whether Stenback Products should invest in the following projects: Project A: Costs $275,000 and offers seven annual net cash inflows of $53,000. Stenback Products requires an annual return of 12% on investments of this nature.. Project B: Costs $390,000 and offers 9 annual net cash inflows of $76,000. Stenback Products demands an annual return 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 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: Years 1-7 Present value of annuity 0 Investment Net present value of Project A Net Cash Annuity PV Factor Present Inflow (-12%, n=7) Value
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