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 $56,000. Vargas Products requires an annual return of 16% on projects like A. . Project B costs $380,000 and offers nine annual net cash inflows of $74,000. Vargas Products demands an annual return of 12% on investments of this nature. Click the icon to view the present value annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value annuity table ) (Click the icon to view the future value table.) Requirement What is the NPV of each project? What is the maximum acceptable price to pay for each project? 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 $ at Enter any number in the edit fields and then click Check Answer, ?Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 20.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.941 2.884 2.829 2775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 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 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 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 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 7.652 7.325 7.020 6.733 6:463 6 210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 8.566 8.162 7.786 7.435 7 108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 10 9.471 8.983 8.530 8.111 7.722 7.360 6 710 6.145 5.650 5.216 4.833 4 494 4.192 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 12 11.255 10.575 9.954 9.385 3.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 13 12. 134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 13.004 12 106 11 296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 15 13.865 12 849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 20 18.046 16 351 14.877 13 590 12 462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 25 22.023 19 523 17 413 15.622 14 094 12 783 10 675 9.077 7.843 6.873 6.097 5.467 4.948 30 25.808 22.396 19 600 17 292 15.372 13 765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 40 32.835 27 355 23.115 19 793 17 159 15 046 11 925 9 779 8.244 7.105 6.233 5.548 4.997 in thi Print Done Clear All Check A
