Use the NPV method to determine whether Preston Products should invest in the following projects: Project A: Costs $290,000 and offers seven annual net cash inflows of $56,000. Preston Products requires an annual return of 12% on investments of this nature. Project B: Costs $385,000 and offers 10 annual net cash inflows of $73,000. Preston Products demands an annual return of 10% on investments of this nature. (Click the icon to view Present Value of $1 table.) Read the requirements. (Click the icon to view Present Value of Ordinary Annuity of $1 table.) 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 0 Present value of annuity Investment Net present value of Project A Calculate the NPV of Project B. Project B: Years 1-10 Present value of annuity 0 Investment Net present value of Project B Net Cash Annuity PV Factor Inflow (i-12%, n=7) Present Value Net Cash Annuity PV Factor Present Inflow (i=10%, n=10) Value Next Requirement 2. What is the maximum acceptable price to pay for each project? Project A Project B Maximum Acceptable Price 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. Project A Project B = Profitability Index =