Use the NPV method to determine whether Preston Products should invest in the following projects:...
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Use the NPV method to determine whether Preston Products should invest in the following projects: Project A costs $280,000 and offers 7 annual net cash inflows of $62,000. Preston Products requires an annual return of 14% on projects like A. Project B costs $390,000 and offers 9 annual net cash inflows OF $69,000. Preston Products demand an annual return of 10% on investments of this nature What is the NPV of each project? What is the maximum acceptable price to pay for each project
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