Question: 4. ANSWER ALL REQUIREMENTS & IN GRAPH. Reference Use the NPV methed to determine whether Kyler Products should invest in the following projects: - Prgject





Reference Use the NPV methed to determine whether Kyler Products should invest in the following projects: - Prgject A. Costs $260,000 and offers eight annual net cash inflows of $54,000. Kyler Products requires an annual return of 14% on investrments of this nature. - Project B. Costs $390,000 and offers 9 annual net cash inflows of $74,000. Kyler Products demands an annual return of 12% on inwestments of this nature. (Click the ican to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuily of St table) Read the reguirements Requirement 1. What is the NPV of each project? Assume neither project has a residual value Round to wo decimal places. (Enter any factor amounts to three decimal places, XXoc 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 Reference 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. Reference Reference
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