Question: Use the NPV method to determine whether Juda Products should invest in the following projects: Project A: Costs $270,000 and offers eight annual net cash

Use the NPV method to determine whether Juda Products should invest

Use the NPV method to determine whether Juda Products should invest in the following projects: Project A: Costs $270,000 and offers eight annual net cash inflows of $56,000. Juda Products requires an annual return of 14% on investments of this nature. Project B: Costs $385,000 and offers 9 annual net cash inflows of $74,000. Juda Products demands an annual return of 12% on investments of this nature. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) O Read the requirements. 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: Net Cash Present Annuity PV Factor (i=14%, n=8) Years Inflow Value 1-8 Present value of annuity 0 Investment Net present value of Project A

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