Question: Display Use the NPV method to determine whether Juda Products should invest in the following projects Project A Costs $275,000 and offers seven annual net







Display Use the NPV method to determine whether Juda Products should invest in the following projects Project A Costs $275,000 and offers seven annual net cash inflows of $53,000, Juda Products requires an annual return of 12% on investments of the Project B Costs $380,000 and offers 9 annual net cash inflows of $75,000 Juda Products demands an annual return of 10% on investments of this na click the icon to view Present Value of $1 table) Click the icon to view Present Value of Ordinary Annuity of $1 tabie) Read the reguitements Sound Notification 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 parentheses or a minus sign for a negative net present Value Focus assics Cachitate the NPV (net present value) of each project Begin by calculating the NPV of Project A Project A: Net Cash Annuity PV Factor Present Power & sle Years (i=12%, n=7) Value 1-7 Present value of annuity Battery Investment Inflow 0 Net present value of ProdA Storage Calculate the NPV of Project Tablet Project B: Net Cash Annuity PV Factor Preta Present Value of $1 Periods 1% 2% 3% 4% % 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0,971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.9070.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.889 0.8640 840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.7600.7110.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.6770627 0.582 0.540 0.502 0.467 0.404 0351 0.327 0.305 0 266 0233 Period 9 0.914 0.837 0.766 0.703 0.6450.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.6140558 0 508 0.463 0422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 Period 110.896 0.8040.7220 650 0585 0527 0.475 0.429 0.388 0.3500 287 0237 0.215 0.195 0.162 0.135 Period 12 0.887 0.7880.701 0.625 0.5570497 0.444 0.397 0.356 0.319 | 0.257 0.208 0.187 0.168 0.137 0.112 Period 13 0.879 0773 0.681 0.601 05300469 0.415 0.368 0.326 0 290 0 229 0.182 0.163 0.145 0.116 0093 Period 14 0.870 07580.661 0.577 05050 442 0388 0.3400 2990 263 0 205 0.1600.141 0.125 0.099 0.078 Period 15 0.861 0.7430642 0.555 0 481 0.417 0.362 0.315 0275 0239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0853 0.7280623 0534 0.458 0.394 0339 0.292 0252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 844 0.714 0.605 0.513 0.436 0.371 0.317 0270 0231 0.1980.146 0.109 0.093 0.080 0.060 0.045 Period 18 0836 0.7000587 0.49404160.350 0.296 0.250 0212 0.180 0.130 0.095 0.081 0.069 0.0510038 Period 19 0828068605700475 0.3960331 0 277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0031 Period 200 820 0.673 0.5540456 0.3770312 0.258 0215 0 178 0.149 0.104 0.073 0.0610 051 0.037 0.026 Period 21 0811 0600 05380439 03590 294 0 242 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0022 Period 22 08030647 0.5220 422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.058 0.046 0.038 0.028 0.018 Period 23 0.795 0.694 0507 0.4060326 0.282 0211 0.1700. 138 0.112 0074 0.049 0.0400033 0.022 0.015 Period 24 0788 0.622 0.492 0.3900 3100 247 0.197 0.1580 1280 1020.066 0013 0.035 0.028 0.019 0013 Period 25 0.780 0 6100478 0.375 0.295 0233 0.184 0.146 0.116 0.092 0 059 0.038 0030 0.024 0016 0010 Inne . w HIVUIL TUU UI UINJILI Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 1.970 1.942 1913 1.886 1.859 1.833 1.8081.783 1.759 1736 1.6901.647 1626 1.605 1.566 1.528 Period 3 2.941 2.884 28292775 2.723 2.673 2624 2.577 2531 2.487 2402 2322 2283 2246 2174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.3873,312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 Period 5 4.853 4713 45804452 4.329 4 212 4.100 3,993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5582 5.389 5.206 5.033 4.868 4.564 4288 4.160 4.039 3.812 3.605 Period 8 7.652 7.325 70206.733 6.463 6.210 5.971 5.747 5,535 5335 4.968 4.639 4.4874.344 4.078 3.837 Period 9 8.566 8.162 77867.435 7 108 6.802 6.515 6.247 5995 5.759 53284.946 4.772 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.6505216 5.019 4.833 4.494 4.192 Period 11 10,368 9.787 9.2538.760 8.306 7.8877499 7 139 6.805 6.495 5.938 5.453 5 234 5.0294.656 4.327 Period 12 11 255 10,575 9.9549385 8.863 8.384 7.9437.536 7.161 6.8146.1945.660 5.421 5.1974.793 4.439 Period 13 12.134 11 348 10.6359.9869.394 8.853 8.358 7.904 7.487 7 103 6.4245.842 5.583 5.342 4.910 4,533 Period 14 13.004 12.106 11.296 10.563 9.8999 295 8.745 8.2447.786 7.367 6.628 6.0025724 5.468 5.0084.611 Period 15 13.865 12 849 11.93811.118 10 380 9.712 9.108 8559 8.061 7608 6.811 6.142 5.847 5.575 5.092 4.675 Period 16 14 718 13578 12.561 11.652 10.838 10.106 9.4478 851 8313 7824 6.9746.265 5.954 5.6695.1624.730 Period 17 15.562 14 292 13.16612. 166 11 274 10477 9763 9.122 8.544 8.0227 120 6373 6047 5.749 5.222 4.775 Period 18 16 398 14.992 13.75412 659 11 690 10.828 10.0599372 8.756 8 2017 250 6.4676.128 5818 5.2734.812 Period 19 17.226 15.678 14 324 13 134 12085 11.158 10.336 9.604 8950 8.365 7.366 6.550 6.198 5.877 5.3164844 Period 20 18.046 16.351 14 877 13,590 1246211.470 10.5949 818 9.129 8.5147.469 6.623 6 259 5.92953534870 Period 21 18 857 17.011 15.415 14 029 1282111764 10.836 10.0179292 8.6497562 6.687 6.3125.97353844 891 Period 22 19.660 17 658 15,93714451 13.163 12.042 11.061 10 201 9442 8.772 7.645 67436 359 8.011 5.410 4.909 Period 23 20.456 18 292 16.44414857 13.489 12 303 11 272 10.371 9580 8883 7718 6.792 6.399 6,044 5.432 4.925 Period 24 21 243 18,914 16 36 15 247 13.799 12 550 11.469105299707 8.985 7784 6.835 6.434 6073 5.451 4937 Period 25 22.023 1952317 41315.622 14.094 12783 11654106759 823 9.077 7.843 687364648.097 5.4674948 Period 26 22796 20.1211787715963 14375 13.003) 11.826 10 8109.929 9.161 7.8966 906 6.491 6 118 5 480 4956 Lequirements 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. arentheses or a minus sign for a negative net present value.) Faclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Net Cash Project A: Years Present Annuity PV Factor (i=12%, n=7) Inflow Value 1-7 Present value of annuity 0 Investment Net present value of Project A Calculate the NPV of Project B Net Cash Project B: Years Annuity PV Factor (i=10%, n=9) Present Inflow Value 1 - 9 Present value of annuity 0 Investment Net present value of Project B Requirement 2. What is the maximum acceptable price to nav for each in Net present value of Project B 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 I Project A Project B de Notification: Calculate the NPV of Project B Present Net Cash Project B: Annuity PV Factor (i=10%, n=9) Inflow Focus assist Value Years 1-9 Present value of annuity Power & sle 0 Investment Net present value of Project B Battery Requiremen for each project? Storage Average amount invested B Tablet Project Average annual operating income Project Initial investment B Multitasking Requiremen Select the fol Present value of net cash inflows Projecting Project X Shared expe Projecte (Round to two decimal places, XXX) itability index of each project Profitability Index to clipboard Choose from a list or enter any number in the input fields and then continue to the next question Type here to search o T um acceptable price to pa Average amount invested Average annual operating income Initial investment tability index of each project e amounts to calculate the pr Present value of net cash inflows 11 Profitabil + II 11
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