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Part $1$

Use the NPV method to determine whether Preston Products should invest in the following$$ projects:

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Project A$$: Costs $ $280$ comma $000$ and offers seven annual net cash inflows of $ $57$ comma $000.$ Preston Products requires an annual return of $14\%$ on investments of this nature.

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Project B$$: Costs $ $395$ comma $000$ and offers $10$ annual net cash inflows of $ $70$ comma $000.$ Preston Products demands an annual return of $12\%$ on investments of this nature.