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

 Use the NPV method to determine whether Root Products should invest
in the following projects: - Projoct A: Costs $265,000 and offers seven
annual net cash inflows of $54,000. Root Products requires an annual return
of 12% on investments of this nature. - Project 8: Costs $400,000
and otfers 9 annual net cash inflows of $73,000. Root Products demands

Use the NPV method to determine whether Root Products should invest in the following projects: - Projoct A: Costs $265,000 and offers seven annual net cash inflows of $54,000. Root Products requires an annual return of 12% on investments of this nature. - Project 8: Costs $400,000 and otfers 9 annual net cash inflows of $73,000. Root Products demands an annual retum of 10% on investments of this nature. (Click the icon to view Present Value of $1 table.) (Cick the icon to view Present Value of Ordinary Annuity of $1 table.) Read the teguirements. Reference Reference parentheses of a minus tign for a negative net present value.) Caclulate the NPY (net present value) of each projoct. Begin by calculating the NPV of Project A. \begin{tabular}{lccc} \hline Project A: & Net Cash & Annulty PV Factor Present \\ Yoars & inflow & (5=12%,n=7) & Value \\ \cline { 1 } \end{tabular} Requirement 2 . What is the maximum acceptable peice to pay for each project? Requirement 2. What is the maximum acceptable peice to pay for each project? Requirement 3. What is the profitability index of each project? (Round to two decimal places, X.) Select the formula, then enter the amounts to calculate the profitability index of each project

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