Use the NPV method to determine whether McKnight Products should invest in the following projects: Project A: Costs $265,000 and offers eight annual net cash inflows of $52,000. McKnight Products requires an annual return of 14% on investments of this nature. Project B: Costs $400,000 and offers 10 annual net cash inflows of $75,000. Mcknight 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 Annuity of $1 table.) Read the requirements. 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, X.XXX. Use parentheses or a minus sign for a negative net present value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A: Net Cash Inflow Annuity PV Factor (i=14%, n=8) Present Value Years 1-8 Present value of annuity 0 Investment Net present value of Project A Calculate the NPV of Project B. Project B: Net Cash Inflow Annuity PV Factor (i=12%, n=10) Present Value Years 1 - 10 O Present value of annuity Investment Net present value of Project B Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 2. What is the maximum acceptable price to pay for each project? Maximum Acceptable Price Project A Project B Requirement 3. What is 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 Present Value of $1 Periods | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% | 16% | 18% | 20% 10.990 | 0.980 | 0.971 | 0.962 | 0.952 | 0.943 10.935 10.926 ] 0.917 10.909 10.893 10.877 10.870 10.862 10.847 10.833 0.980 10.961 10.943 10.925 | 10.907 0.890 10.873 0.857 0.842 10.826 0.797 10.769 0.756 0.743 10.718 0.694 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 10.675 10.658 0.641 0.609 0.579 0.961 0.924 10.888 0.855 10.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.951 0.906 0.822 10.784 0.747 0.713 0.681 10.650 10.621 0.567 0.519 0.497 0.476 0.437 0.402 0.942 0.790 10.746 0.705 10.666 0.630 0.596 10.564 0.507 0.456 0.432 10.410 0.370 0.335 0.933 10.871 0.813 10.760 0.711 10.665 0.623 0.583 0.547 10.513 0.452 10.400 | 0.376 10.354 0.314 10.279 0.923 10.853 0.789 10.731 0.677 0.627 0.582 10.540 0.502 10.467 10.404 10.351 0.327 0.305 10.266 10.233 0.914 10.837 0.766 0.703 10.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 0.905 10.820 0.744 0.676 10.614 10.558 0.508 10.463 0.422 0.386 0.322 0.270 0.247 10.227 0.191 0.162 0.863 0.888 10.837 12345 67890 HQ8466MB9%a88 0.896 0.887 0.879 0.870 0.861 10.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.585 0.625 10.557 0.601 10.530 0.577 | 10.505 10.555 | 10.481 0.527 0.497 0.469 0.442 0.417 0.475 0.444 0.415 0.388 0.362 0.429 0.397 0.368 0.340 0.315 10.388 0.356 0.326 0.299 0.275 0.350 0.319 0.290 0.263 0.239 0.287 0.257 0.229 0.205 0.183 10.237 10.215 0.208 | 10.187 0.182 0.163 0.160 | 0.141 10.140 0.123 0.195 0.168 0.145 0.125 0.108 0.162 0.137 0.116 0.099 0.084 10.135 0.112 0.093 0.078 0.065 0.853 0.728 0.623 | 0.534 0.458 0.394 10.339 0.292 0.252 0.218 0.163 10.123 0.107 0.093 0.071 10.054 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 10.080 0.060 0.045 0.836 0.700 0.587 0.494 0.416 0.350 0.296 10.250 0.212 0.180 0.130 0.095 0.081 10.069 | 0.051 10.038 0.828 10.686 0.570 0.475 0.396 0.331 0.277 10.232 0.194 0.164 0.116 0.083 0.070 10.060 | 0.043 10.031 0.820 10.673 0.554 0.456 0.377 0.312 0.258 10.215 10.178 0.149 0.104 10.073 0.061 10.051 | 0.037 0.026 0.811 10.660 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 0.803 | 0.647 10.522 | 0.422 0.342 | 0.278 | 0.226 10.184 | 0.150 10.123 0.083 0.056 0.046 | 0.038 | 0.026 0.018 | 0.795 | 0.634 | 0.507 | 0.406 | 0.326 10.262 10.211 10.170 10.138 | 0.112 | 0.074 | 0.049 | 0.040 | 0.033 | 0.022 | 0.015 Present Value of Ordinary Annuity of $1 3.630 4.160 Periods | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% | 16% | 18% | 20% 0.990 || | 0.962 | 0.952 | 0.943 | 0.935 | 0.926 | 0.917 | 10.909 | 0.893 | 0.877 10.870 | 0.862 10.847 | 0.833 11.970 | 1.942 1.913 1.886 1.859 1.833 1.808 | 1.783 | 1.759 1.736 1.690 1.647 1.626 1.605 1.566 1.528 2.941 2.884 2.829 2.775 2.723 2.673 12.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 12.174 2.106 3.902 3.808 3.717 3.546 3.465 3.387 3.312 13.240 3.170 | 3.037 2.914 2.855 2.798 12.690 2.589 4.853 4.713 4.580 4.452 4.329 4.212 14.100 3.993 3.890 3.791 3.605 | 13.433 3.352 3.274 3.127 2.991 5.795 5.601 5.417 5.242 5.076 | 4.917 4.767 4.623 | 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 16.728 6.472 6.230 6.002 5.786 5.582 15.389 | 5.206 | 5.033 4.868 4.564 4.288 4.039 3.812 3.605 17.652 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 3.837 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 9.471| 8.983 18.530 8.111 7.722 7.360 7.024 6.710 16.418 6.145 5.650 5.216 5.019 4.833 4.494 14.192 10.368 9.787 9.253 88.760 | 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.327 1.255 | 10.575 19.954 9.385 8.863 8.384 7.943 17.536 17.161 16.814 6.194 5.660 5.421 5.197 4.793 4.439 12.134 | 11.348 | 10.635 | 9.986 9.394 8.853 8.358 7.904 7.487 || 7.103 6.424 5.842 5.583 5.342 4.910 4.533 13.004 112.106 | 11.296 | 10.563] 9.899 19.295 18.745 18.244 17.786 17.367 16.628 16.002 15.724 5.468 15.008 4.611 | 13.865 | 12.849 | 11.938 | 11.118 10.380 9.712 9.108 | 8.559 18.061 7.606 6.811 16.142 5.847 5.575 15.092 4.675 | 14.718 | 13.578 | 12.561| 11.652 | 10.838| 10.106 | 9.447 18.85118.313 17.824 16.974 6.265 | 5.954 5.669 5.162 4.730 15.562 | 14.292 | 13.166 | 12.166 | 11.274 | 10.477 19.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 16.398 | 14.992 | 13.754 | 12.659 | 11.690 110.828 | 10.059 19.372 8.756 8.2011 7.250 6.467 6.128 5.818 5.273 4.812 17.226 | 15.678 | 14.324 | 13.134 112.085 | 11.158 | 10.336 19.604 88.950 8.365 7.366 6.550 6.198 5.877 5.316 4.844 18.046 | 16.351| 14.877 | 13.590 | | 12.462 | 11.470 | 10.594 | 9.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 34567890HQ346 18.857 117.011 | 15.415 | 14.029 | 12.821 | 11.764 |10.836 | 10.017 9.292 18.649 7.562 6.687 6.312 5.973 5.384 4.891 19.660 117.658115.937 114.451113.163 | 12.042 | 11.061 | 10.201 9.442 8.772 17.645 6.743 6.359 6.011 5.410 14.909 20.456 118.292 | 16.444 114.857113.489 | 12.303 111.272 110.37119.580 18.883 17.718 16.792 16.399 | 6.044 15.432 | 4.925