Question: complete all requirements for a like Use the NPV method to determine wheher Vargas Procucts should invest in the following projects: - Propet A: Costs







Use the NPV method to determine wheher Vargas Procucts should invest in the following projects: - Propet A: Costs $760,000 and oflers soven annual net cath inflows of 556,000 . Vargas Products requires an arnual return of 12% on investments of this nature. - Propect 8: Costs $360,000 and offers 10 annual net cash inflows of $76,000, Vergss Products demands an annual retum of 10% on investrients of this nature. (Cick the itan to view Present Valie of 51 table) Cick the icon b vew Presert Valie of Ortinary Arnuity of 51 table.) fread the Requirement 1. What is the NoPV of each project? Assume nether project has a residual vatue. Round to two decimal places. (Entor any tactor amounts to three decimal places, XxXX. Use parenthesus or a murue sigh for a negative net prosont yalve.) Cacluatn the Nov (net presert value) of each project. Begin by caloulating the NPV of Project A Reference of this nature. his nature to thoee thicimal places, X.XX, Use Reference If this nature. jis nature. to three decimal placns. X,XOXX : Use 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
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