Project A costs $270,000 and offers eight annual net cash inflows of $58,000. Juda Products requires an annual return of 16% on projects like A.

Project B costs $385,000 and offers nine annual net cash inflows of $69,000. Juda products demands an annual return of 14% on investments of this Nature.

Calculte the NPV of each project.

Calculate the maximum acceptable price to pay for each project.

Calculate the NPV of each project. (Round your answers to the neares The NPV of Project A is The NPV of Project B is Now calculate the maximum acceptable price to pay for each project.( Project A is Project B is . Use the NPV method to determine whether Juda Products should invest in the folli Project A costs $270,000 and offers eight annual net cash inflows of $58,000. Project B costs $385,000 and offers nine annual net cash inflows of $69,000 (Click the icon to view the present value annuity table.) (Click the icon . (Click the icon to view the future value annuity table.) (Click the icon Requirement VAIL IL RE Present Value of Annuity of $1 eriods 1% 2% 3% 4% 5% 6% 8% riod 1 10% 12% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 14% 16% 18% 20% eriod 2 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 eriod 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2322 2246 2.174 2.106 eriod 4 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 eriod 5 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 eriod 6 5.795 5.601 5.417 5.2425.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 meriod 7 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 eriod 8 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 eriod 9 8.566 8.1627.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 "eriod 10 9.471 8.983 8.530 8.1117.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 Period 11 10.3689.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 12 11.255 10.575 9.954 9.3858.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 Period 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 Period 14 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 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5575 5.092 4.675 Period 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 Period 25 22.023 19.52317.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 6.177 5.517 4.979 Period 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 Future Value of Annuity of 1 2.050 16% Periods 1% 2% 3% riod 1 4% 5% 1.000 6% 8% 1.000 1.000 10% 12% 14% 1.000 1.000 18% riod 2 1.000 1.000 1.000 1.000 20% 2.010 2.020 2.030 2.040 1.000 1.000 1.000 1.000 riod 3 2.060 2.080 2.100 2.120 3.030 3.060 3.091 3.122 3.153 2.140 2.160 2.180 2200 3.184 3.246 3.310 3.374 riod 4 3.440 3.506 3.572 3.640 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5368 riod 5 5.101 5.204 5.309 5.416 5.526 5.637 5.8676.105 6.353 6.610 6.877 7.154 7442 riod 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.977 9.442 9.930 riod 7 7.214 8.142 11.414 7.434 7.662 7.898 8.394 12.142 8.923 9.487 10.089 10.730 16.499 riod 8 8.286 8.583 8.8929.2149.549 9.897 10.637 11.436 12.300 13.233 17519 19.086 20.799 riod 9 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 21.321 23.521 25.959 riod 10 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 19.337 28.755 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 riod 12 8.536 12916 14.240 15.327 riod 11 25.733 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 32.150 30850 34.931 39581 riod 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 42219 48.497 riod 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32 393 37.581 43.672 50.818 59.196 riod 15 16.09717.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 51.660 60.96572035 riod 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 115,380 146.628 186.688 riod 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 riod 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 630.312 790.948 1,181.882 riod 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,183.2137.343.858 Dane 16% 18% Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% Period 1 12% 14% 0.990 0.980 0.971 0.962 0.952 0.943 20% 0.926 0.909 0.893 0.877 0.862 0.847 0833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 -0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 110.896 0.8040.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 200.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 Period 30 0.742 0.552 0.412 0.308 0.231 0.1740.099 0.057 0.033 0.020 0.012 0.007 0.004 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 Reference This Test: 200 pts possible Future Value of $1 Periods 1% 2% 3% 4% Period 1 5% 6% 8% 1.010 1.020 1.030 1040 1050 1060 1.080 1.100 1.120 1.140 1.160 1160 10% 12% 14% 16% 18% 20% Period 2 1.020 1.040 1.061 1.082 1103 1.124 1.166 1210 125 1300 1348 1392 1440 1200 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1331 1405 1482 1.561 160 172 Period 4 1.041 1.082 1.126 1.170 1216 1.262 1360 1464 1574 1689 1.811 1999 2074 Period 5 1.051 1.104 1.159 1.217 1.276 1338 1469 1611 1762 1925 2.100 2288 2488 Period 6 1.062 1.126 1.194 1265 1340 1419 1587 1772 1974 2195 2436 2700 2366 Period 7 1.149 1.230 1.316 1407 1.504 1.714 1949 2211 2502 2826 3.185 3583 Period 8 1.083 1.172 1.267 1.369 1.4771.594 1.851 2144 2.478 2853 32783759 4300 Period 9 1.094 1.195 1.305 1423 1.551 1.689 1.999 2358 2.773 3252 3803 4.435 5180 Period 10 1.072 1.105 1.219 1.344 1480 1.629 1.791 2.159 2594 3.106 3.707 4411 5234 6.182 Period 11 1.116 1.243 1.384 1.539 1710 1898 2.332 2853 3.479 4226 5.117 6.178 7430 Period 12 1.127 1.268 1.426 1.601 1.796 2.012 2518 3.138 3.896 4818 5938 7286 8915 Period 13 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4363 5492 6.886 3.599 10.000 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2937 3.797 4.897 6261 7988 10.147 12.639 Period 15 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.4747.138 9286 11.97415407 Period 20 1.220 1.486 1.806 2.191 2.653 3.207 4,661 6.727 9.546 13.743 19.461 27383 38338 Period 25 1.282 1.641 2.094 2.666 3.386 4292 6.848 10.835 17.000 25462 40.874 62.609 9538 Period 30 1.348 1.811 2.427 3.243 4322 5743 10.063 17.449 29.960 50.950 85.850 143.371 237378 Period 40 1.489 2.208 3.262 4.801 7.040 10.286 21725 45259 93.061 188,884 378.7217503701,409.772 - Future Value of $1 4% Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 2% 3% 5% 6% 1.020 1.030 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 8% 10% 12% 14% 16% 18% 20% 1.0401.061 1.082 1.103 1.124 1.166 1.200 1.061 1.093 1.125 1.210 1.254 1.158 1.191 1.300 1.346 1.392 1.440 1.260 1.331 1.405 1.082 1.126 1.1701.216 1.262 1360 1.464 1.482 1.561 1.643 1.728 1.104 1.159 1.217 1.276 1.338 1.574 1.689 1.811 1.939 2074 1.469 1.611 1.762 1.925 2.100 2.288 2.488 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.9742.195 2.436 2.700 2.986 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 1.1721.267 1.369 1.4771.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.7733.252 3.803 4.435 5.160 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1.243 1.384 1.539 1.7101.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 1.268 1.426 1.601 1.796 2.012 2.518 8.916 3.138 3.896 4.818 5.936 7288 8.599 1.294 10.699 1.469 1.665 6.886 1.886 2.133 2.720 3.452 4.363 5.492 6.261 12.839 1.319 1.513 1.732 1.980 2.261 2.937 | 3.797 4.887 7.988 10.147 5.474 7.138 9.266 11.974 15.407 1.346 1.558 1.801 2.079 2.397 3.172 4.177 1.486 1.806 2.191 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 1.641 6.848 10.835 17.000 26.462 40.874 62.669 95,396 2.094 2.666 3.386 4.292 1.811 2.427 3.243 2.208 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1.489 4.3225.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1.469.772 3.262 4.801