Use the NPV method to determine whether White Products should invest in the following projects: Project A: Costs $280,000 and offers eight annualr Project B: Costs $385,000 and offers 10 annual nel cash inflows of $77,000. White Products demands t cash inflows of $52,000. White Products requires an annual retum of 16 % on investments of this nature annual return of 14% 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 S1 table.) Read the requirements Requirement 1. What is the NP af 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 net present value.) Cacluate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A Annuity PV Factor Net Cash Present (i-16 % , n- 8 ) Years Inflow Value Present value of annuity 1-8 Investment Net present value of Project A Calculate the NPV of Project B Project B: Net Cash Annuity PV Factor Present (i-14 % , n- 10) Years Inflow Value Present value of annuity 1-10 Investment Net present value of Project B Requirement 2. What the maximum acceptable price to pay for each project? Maximum Acceptable Price Project A Project B Requirement 3. What 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 - X i Requirements 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. 2. What is the maximum acceptable price to pay for each project? 3. What is the profitability index of each project? Round to two decimal places. Done Print i Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 0.980 0.961 0.943 0.925 0.890 0.873 0.857 0.842 0.826 0.797 0.756 0.743 0.694 2 0.907 0.769 0.718 0.915 3 0.971 0.942 0.889 0.864 0840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0,683 0.636 0.592 0.572 0.552 0.516 0.482 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 0,888 6 0.942 0.837 0.790 0.746 0.705 0.666 0.630 0,596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 0.789 0.677 0.582 0.502 0 404 0.327 0.305 0.266 0.233 0.923 0.853 0.731 0.627 0.540 0.467 0.351 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 0.744 0.508 10 0.905 0.820 0.676 0.614 0.558 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 0.257 12 0.887 0788 0701 0,625 0.557 0.497 0.444 0.397 0.356 0.319 0.208 0.187 0.168 0.137 0.112 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.205 0.141 0.078 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.160 0.125 0.099 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0,623 16 0.853 0.728 0.534 0.458 0,394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 0.146 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.108 0.093 0.080 0.060 0.045 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.026 0.051 0.037 0.064 0.053 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.093 0.044 0.031 0.022 22 0.038 0.803 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.026 0.018 0.326 23 0.795 0.634 0.507 0.406 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 0.220 26 0.772 0.598 0.464 0.361 0.281 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 27 0.764 0.586 0.347 0.450 0437L 0.333. 0.268 0.207 0 255. Lo 196. 0.161 0.125 0.098 0.076 L0.090.Lo 06g 0.047 0.018 0.023 0.042 0.026RL0020 Lo016. Lo010 |o006. 0.029 0.011 0.007 29 0.150 0 757 0.574 0.116 Print Done i Reference - Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 1 1.886 1.783 1.566 1.970 1.942 1.913 1.859 1.833 1.808 1.759 1.736 1.690 1.647 1.626 1.605 1.528 2 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2402 2.322 2.283 2.246 2.174 2.106 4 3.902 3.717 3,240 2.798 3.808 3.630 3.546 3.465 3.387 3.312 3.170 3.037 2.914 2.855 2.690 2.589 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3433 3.352 3.274 3.127 2.991 5.795 5417 4.767 4.486 3.685 3.498 3.326 6 5.601 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.784 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.605 3.837 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 8.566 7.108 6.515 5.995 5.328 4.607 9 8.162 7.786 7.435 6.802 6.247 5.759 4.946 4.772 4.303 4.031 10 6.418 6.145 9471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 5.650 5.216 5.019 4.833 4.494 4.192 10.368 9.787 11.255 10.575 12.134 11.348 10.635 13.004 12.106 11.296 13.865 12.849 9.253 8.306 5.029 11 8.760 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 4.656 4.327 5.197 12 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.421 4.793 4.439 13 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6424 5.842 5.583 5.342 4.910 4.533 14 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.611 11.938 11.118 10.380 9.712 9.108 8.061 7.606 6.811 6,142 5.847 5.575 5,092 4.675 15 8.559 14.718 13.578 11.652 10.838 10.106 9.447 10.477 9.763 10.828 10.059 13.134 12.085 11.158 10.336 9.604 16 12.561 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730 15.562 14.292 16.398 14.992 13.754 17.226 15.678 18.046 16.351 17 7.120 13.166 12.166 11.274 12.659 11,690 9.122 8.544 8.022 6.373 6.047 5.749 5.222 4.775 18 9.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.812 19 14.324 8.950 8.365 7.366 6.550 6.198 5.877 5.316 4.844 14.877 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 20 13.590 18.857 17.011 15.415 19.660 17.658 20.456 18.292 14.029 12.82111.764 10.836 10.017 21 9.292 8.649 7.562 6.687 6.312 5.973 5.384 4.891 12.042 11.061 12.303 11272 10.371 11.469 10,529 12.783 11.654 10.675 22 15.937 13.163 9.442 8.772 7.645 4.909 14.451 10.201 6,743 6.359 6.011 5.410 23 16.444 14.857 13 489 9.580 8.883 7.718 6.792 6.399 6.044 5.432 4.925 21.243 24 18.914 16.936 15.247 13.799 12.550 9.707 8.985 7.784 6.835 6.434 6.073 5.451 4.937 22.023 19.523 17.413 15.622 14.094 25 9.823 9.077 7.843 6.873 6.464 6.097 5.467 4.948 22.795 20.121 23.560 20.707 20 316 L 21.281 | 18 764 | 16 663 L 14. 898| 13 406. | 12 137 | 11.051 15.983 14.375 13.003 11.826 16.330 14.643 13211 11.98710.935 10.027 26 17.877 10.810 9.929 9.161 7.896 6.906 6.491 6.118 5.480 4.956 27 18.327 9.237 10.116 | 9 307. 7.943 7 984 6.935 6.514 R 961 6.534. 6.136 5.492 4.964 i 970. 28 R 152 502 Print Done X