Question: Use the NPV method to determine whether Juda Products should invest in the following projects: Project A: Costs $265,000 and offers seven annual net

Use the NPV method to determine whether Juda Products should invest in

Use the NPV method to determine whether Juda Products should invest in the following projects: Project A: Costs $265,000 and offers seven annual net cash inflows of $53,000. Juda Products requires an annual return of 14% on investments of this nature. Project B: Costs $380,000 and offers 10 annual net cash inflows of $71,000. Juda Products demands an annual return of 12% on investments of this nature. (Click the icon to view Present Value of $1 table.) of $1 table.) Read the requirements. (Click the icon to view Present Value of Ordinary Annuity 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 three decimal places, X.XXX. 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. Project A: Years 1-7 Present value of annuity 0 Investment Net present value of Project A Net Cash Annuity PV Factor Present Inflow (i=14%, n=7) Value

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