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.

Reference Future Value of $1 Periods 8% 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 4% 1.040 1.082 1.125 1.170 1.217 6% 1.060 1.124 1.191 1.262 1.338 16% 1.160 1.346 1.561 1.811 2.100 1.062 1.072 1.083 1.094 1.105 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 1.265 1.316 1.369 1.423 1.480 5% 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.477 1.551 1.629 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4.322 7.040 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 1.486 1.641 1.811 2.208 1.419 1.504 1.594 1.689 1.791 1.898 2.012 2.133 2.261 2.397 10% 12% 1.100 1.120 1.210 1.254 1.331 1.405 1.464 1.574 1.611 1.762 1.772 1.974 1.949 2.211 2.144 2.476 2.358 2.773 2.594 3.106 2.853 3.479 3.138 3.896 3.452 4.363 3.797 4.887 4.177 5.474 6.727 9.646 10.835 17.000 17.449 29.960 45.25993.051 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 2.436 2.826 3.278 3.803 4.411 5.117 5.936 6.886 7.988 9.266 18% 20% 1.180 1.200 1.392 1.440 1.643 1.728 1.939 2.074 2.288 2.488 2.700 2.986 3.185 3.583 3.759 4.300 4.435 5.160 5.234 6.192 6.176 7.430 7.288 8.916 8.599 10.699 10.147 12.839 11.974 15.407 27.393 38.338 62.669 95.396 143.371 237.376 750.378 | 1,469.772 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1.489 1.539 1.601 1.665 1.732 1.801 2.332 2.518 2.720 2.937 3.172 4.661 6.848 10.063 21.725 2.191 2.666 3.243 4.801 3.207 4.292 5.743 10.286 19.461 40.874 85.850 378.721 Print Done i Reference 4% | 0.962 0.925 0.889 0.855 0.822 18% 0.847 0.718 0.609 0.516 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 0.476 0.437 0.370 0.314 Periods 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.820 0.780 0.742 | 0.672 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.673 0.610 0.552 0.453 0.266 0.790 0.760 0.731 0.703 0.676 Present Value of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 0.907 0.890 0.857 0.826 0.864 0.840 0.794 0.751 0.823 0.792 0.735 0.683 0.784 0.747 0.681 0.621 0.746 0.705 | 0.630 0.564 0.711 0.665 0.583 0.513 0.677 0.627 0.540 0.467 0.6450.592 0.500 0.424 0.614 0.558 0.463 0.386 | 0.585 0.527 0.429 0.350 0.557 0.497 0.397 0.319 0.530 0.469 0.368 0.290 0.505 0.442 0.340 0.263 0.481 0.417 0.315 0.239 0.377 0.312 0.215 0.149 0.295 0.233 0.146 0.092 0.231 0.174 0.099 0.057 0.142 0.097 0.046 0.022 12% 14% 16% 0.893 0.877 0.862 0.797 0.769 0.743 | 0.712 0.675 0.641 0.636 0.592 0.552 0.567 0.519 0.507 | 0.456 | 0.410 0.452 0.400 0.354 0.404 0.351 0.305 0.361 0.308 | 0.263 0.322 0.270 0.227 0.287 0.237 | 0.195 0.257 0.208 | 0.168 0.229 0.182 0.145 0.205 0.160 0.125 0.183 0.140 0.108 0.104 0.073 0.051 0.059 0.038 0.024 0.033 0.020 0.012 0.0110.005 0.003 0.225 0.191 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.026 0.010 0.004 0.001 0.722 | 0.701 0.681 0.661 0.642 0.554 0.478 0.412 0.307 0.650 0.625 0.601 0.577 0.555 0.456 0.162 0.137 0.116 0.099 0.084 0.037 0.016 0.007 0.001 0.375 0.308 0.208 Print Done A Reference Periods 1% 1.000 2.010 3.030 4.060 5.101 16% 1.000 2.160 3.506 5.066 6.877 8.142 6.975 8.394 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 24.297 32.030 40.568 60.402 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 26.870 36.459 47.575 75.401 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 7.336 7.716 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 24.215 27.975 21.579 23.276 27.152 31.772 33.066 36.786 45.762 57.275 47.727 54.865 73.106 98.347 66.439 79.058 113.283 164.494 120.800 154.762 259.057 442.593 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 37.280 72.052 133.334 241.333 767.091 14% 1.000 2.140 3.440 4.921 6.610 8.536 10.730 13.233 16.085 19.337 23.045 27.271 32.089 37.581 43.842 91.025 181.871 356.787 1,342.025 8.977 11.414 14.240 17.519 21.321 25.733 18% 20% 1.000 1.000 2.180 2.200 3.572 3.640 5.215 5.368 7.154 7.442 9.442 9.930 12.142 12.916 15.327 16.499 19.086 20.799 23.521 25.959 28.755 32.150 34.931 39.581 42.219 48.497 50.818 59.196 60.965 72.035 146.628 186.688 342.603 471.981 790.948 | 1,181.882 4,163.213 7,343.858 30.850 36.786 43.672 51.660 115.380 249.214 530.312 2,360.757 Print Done i Reference Periods 1% 0.990 1.970 2.941 3.902 4.853 2% 3% 0.980 0.971 1.942 1.913 2.884 | 2.829 3.808 | 3.717 4.713 | 4.580 5.795 5.601 5.417 6.728 6.472 6.230 7.652 7.325 7.020 8.566 8.162 7.786 9.471 8.983 8.530 10.368 9.787 9.253 11.255 10.575 9.954 12.134 | 11.348 10.635 13.004 12.106 11.296 13.865 12.849 11.938 18.046 16.351 14.877 22.023 19.523 17.413 25.808 22.396 19.600 32.835 27.355 27.355 1 22.15 23.115 Present Value of Annuity of $1 4% 5% 6% 8% 10% 12% 0.962 0.952 0.943 0.926 0.909 0.893 1.886 1.859 1.833 1.783 1.736 1.690 2.775 2.723 | 2.673 2.577 2.487 2.402 3.630 | 3.546 3.465 3.312 3.170 3.037 4.452 4.329 4.212 3.993 3.791 3.605 5.242 5.076 4.917 4.623 | 4.355 4.111 6.002 5.786 5.582 5.206 | 4.868 4.564 6.733 6.463 6.210 5.747 5.335 4.968 7.435 7.108 6.802 6.247 5.759 5.328 8.111 7.722 7.360 6.710 6.145 5.650 8.760 8.306 7.887 7.139 6.495 5.938 9.385 8.863 8.384 7.536 6.814 6.194 9.986 9.394 8.853 7.904 7.103 6.424 10.563 9.899 9.295 8.244 7.367 6.628 11.118 10.380 9.712 8.559 7.606 6.811 13.590 12.462 11.470 9.818 8.514 7.469 15.622 14.094 | 12.783 10.675 9.077 7.843 17.292 15.372 13.765 11.258 9.4278.055 19.793 17.159 15.046 11.925 9.779 | 8.244 14% 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 5.453 5.660 5.842 6.002 6.142 6.623 6.873 7.003 7.105 16% 0.862 1.605 2.246 2.798 3.274 3.685 4.039 | 4.344 4.607 4.833 5.029 5.197 5.342 5.468 5.575 5.929 6.097 6.177 6.233 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 5.092 5.353 5.467 5.517 5.548 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.997 Print Done