what is the NPV of each project? Assume need the project has a residual value. Round to 2 decimal places.
\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{ Periods } & \multicolumn{16}{|c|}{\begin{tabular}{l} Present Value of $1 \\ 7% \end{tabular}} \\ \hline & 1% & 2% & 3% & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 12% & 14% & 15% & 16% & 18% & 20% \\ \hline Period 1 & 0.990 & 0980 & 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 \\ \hline Period 2 & 0.900 & 0.961 & 0.943 & 0.925 & 0.907 & 0.890 & 0.873 & 0.857 & 0.842 & 0.826 & 0.797 & 0.769 & 0.756 & 0.743 & 0718 & 0.694 \\ \hline Period 3 & 0.971 & 0.942 & 0.915 & 0.889 & 0.864 & 0.840 & 0.816 & 0.794 & 0.772 & 0.751 & 0.712 & 0.675 & 0.658 & 0.641 & 0.509 & 0.579 \\ \hline Period 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 \\ \hline Period 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 \\ \hline Period 6 & 0.942 & 0.888 & 0.837 & 0.790 & 0.746 & 0.705 & 0.656 & 0.630 & 0.596 & 0.564 & 0.507 & 0.456 & 0.432 & 0.410 & 0.370 & 0.335 \\ \hline Period 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 \\ \hline Period 8 & 0.923 & 0.853 & 0.789 & 0.731 & 0.677 & 0.627 & 0.582 & 0.540 & 0.502 & 0.467 & 0.404 & 0.351 & 0.327 & 0.305 & 0.265 & 0.233 \\ \hline Period 9 & 0.914 & 0.837 & 0.766 & 0.703 & 0.645 & 0.592 & 0.544 & 0.500 & 0.460 & 0.424 & 0.351 & 0.308 & 0.284 & 0.263 & 0.225 & 0.194 \\ \hline Period 10 & 0.905 & 0.820 & 0.744 & 0.676 & 0.614 & 0.558 & 0.508 & 0.463 & 0.422 & 0.385 & 0.322 & 0.270 & 0.247 & 0.227 & 0.191 & 0.162 \\ \hline Period 11 & 0.896 & 0.804 & 0.722 & 0.650 & 0.585 & 0.527 & 0.475 & 0.429 & 0.388 & 0.350 & 0.237 & 0.237 & 0.215 & 0.195 & 0.162 & 0.135 \\ \hline Period 12 & 0.887 & 0.788 & 0.701 & 0.625 & 0.557 & 0.497 & 0.444 & 0.397 & 0.356 & 0.319 & 0.257 & 0.208 & 0.187 & 0.168 & 0.137 & 0.112 \\ \hline Period 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 \\ \hline Period 14 & 0.870 & 0.758 & 0.661 & 0.577 & 0.505 & 0.442 & 0.388 & 0.340 & 0.299 & 0.263 & 0.205 & 0.160 & 0.141 & 0.125 & 0.099 & 0.078 \\ \hline Period is & 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 & 0.034 & 0.065 \\ \hline Peric & 0.853 & 0.728 & 0.623 & 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 \\ \hline Peric & 0.844 & 0.714 & 0.605 & 0.513 & 0.436 & 0.371 & 0.317 & 0.270 & 0.231 & 0.198 & 0.146 & 0.108 & 0.093 & 0.080 & 0.060 & 0.045 \\ \hline Period 18 & 0.835 & 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 \\ \hline Period 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 \\ \hline Period 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 & 0.051 & 0.037 & 0.026 \\ \hline Period 21 & 0.811 & 0.660 & 0.538 & 0.439 & 0.359 & 0.294 & 0.242 & 0.199 & 0.164 & 0.135 & 0.093 & 0.064 & 0.053 & 0.044 & 0.031 & 0.022 \\ \hline Period 22 & 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 & 0.038 & 0.026 & 0.018 \\ \hline Period 23 & 0.795 & 0.634 & 0.507 & 0.406 & 0.326 & 0.262 & 0.211 & 0.170 & 0.138 & 0.112 & 0.074 & 0.049 & 0.040 & 0.033 & 0.022 & 0.015 \\ \hline Period 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 \\ \hline Period 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 \\ \hline Period 26 & 0.772 & 0.598 & 0.464 & 0.361 & 0.281 & 0.220 & 0.172 & 0.135 & 0.106 & 0.084 & 0.053 & 0.033 & 0.026 & 0.021 & 0.014 & 0,009 \\ \hline Period 27 & 0.764 & 0.586 & 0.450 & 0.347 & 0.268 & 0.207 & 0.161 & 0.125 & 0.098 & 0.076 & 0.047 & 0.029 & 0.023 & 0.018 & 0.011 & 0.007 \\ \hline Period 28 & 0.757 & 0.574 & 0.437 & 0.333 & 0.255 & 0.196 & 0.150 & 0,116 & 0.090 & 0.069 & 0.042 & 0.026 & 0.020 & 0.016 & 0.010 & 0006 \\ \hline Period 2 & 0.749 & 0.563 & 0.424 & 0.321 & 0.243 & 0.185 & 0.141 & 0.107 & 0.082 & 0.063 & 0.037 & 0.022 & 0,017 & 0.014 & 0008 & 0,005 \\ \hline Period 30 & 0.742 & 0.552 & 0.412 & 0.308 & 0.231 & 0.174 & 0.131 & 0.099 & 0.075 & 0.057 & 0.033 & 0.020 & 0015 & 0.012 & 0,007 & 0,004 \\ \hline Period 40 & 0.672 & 0.453 & 0.307 & 0.208 & 0,142 & 0.097 & 0.067 & 0.046 & 0.032 & 0.022 & 0.011 & 0.005 & 0.004 & 0.003 & 0.001 & 0.001 \\ \hline Pariod 50 & 0.608 & 0.372 & 0.228 & 0.141 & 0.087 & 0.054 & 0.034 & 0.021 & 0.013 & 0.009 & 0.003 & 0,001 & 0.001 & 0.001 & & \\ \hline \end{tabular} Use the NPV method to determine whether Smth Products should invest in the following projects: - Project A: Costs $290,000 and offers seven annual net cash inflows of $54,000. Smith Products requires an annual return of 14% on investments of this nature - Project B: Costs $395,000 and offers 10 annual net cash inflows of $70,000. Smith Products demands an annual return of 12% on investments of this nature. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuty of $1 table.) Read the mequirements. 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, X00. Use parentheses or a minus sign for a negative net present value.) Caclulate the NPV (net present value) of each project Bepin by calculating the NPV of Project A. Requirement 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
