. Use the NPV method to determine whether Vargas Products should invest in the following projects: Project A: Costs $280,000 and offers eight annual net cash inflows of $57,000. Vargas Products requires an annual return of 14% on investments of this nature. Project B. Costs $385,000 and offers 9 annual net cash inflows of $76,000. Vargas Products demands an annuat return of 12% on investments of this nature, (Click the icon to view Present Value ot's 1 table.) Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements 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 not present value) Caciulate the NPV (not present value) of each project. Begin by calculating the NPV of Project A. Project A: Net Cash Annuity PV Factor Present Years Inflow (114%, n=8) Value 1 - 8 Present value of annuity 0 Investment Net present value of Project A Calculate the NPV of Project B Project Net Cash Annuity PV Factor Present Inflow (12%, 9) Value 1.9 Present value of annuity 0 Investment Years Net present value of Project Requirement 2. What is the maximum acceptable price to pay for each project? Maximum Acceptable Price Project A Project B he Requirement 3. What is the profitability index of each project? (Round to two decimal places, X.XX.) Select the formula, then enter the amounts to calculate the profitability index of each project. Profitability Index Project A Project B