Question: Use the NPV method to determine whether Root Products should invest in the following projects: Project A costs $285,000 and offers seven annual net

Use the NPV method to determine whether Root Products should invest inthe following projects: Project A costs $285,000 and offers seven annual netcash inflows of $60,000. Root Products requires an annual return of 14%on projects like A Project 8 costs $395,000 and offers ten annual

Use the NPV method to determine whether Root Products should invest in the following projects: Project A costs $285,000 and offers seven annual net cash inflows of $60,000. Root Products requires an annual return of 14% on projects like A Project 8 costs $395,000 and offers ten annual net cash inflows of $68,000. Root Products demands an annual return of 12% on investments of this nature. (Click the icon to view the present value annuity table.) (Click the icon to view the huture value annuity table) Requirement (Click the icon to view the present value table.) (Click the icon to view the future value table.) What is the NPV of each project? What is the maximum acceptable price to pay for each project? Calculate the NPV of each project. (Round your answers. The NPV of Project A is naarast whole dollar Usa narentheses or a minus present values i Reference Present Value of Annuity of S1 Periods Period 1 0.990 Period 2 1.970 Period 3 2.941 Period 4 3.902 Period 5 4.853 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.942 1.913 1886 1.859 1833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3433 3.274 3.127 2.991 5.601 5417 5.242 5.076 4.917 4.623 4355 4.111 3.889 3.685 3.498 3.326 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4494 4.192 Period 6 5.795 Period 7 6.728 Period 8 7652 Period 9 8.566 Period 9471 10. Period 11 10 36% 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327) Period 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4439 12 Period 12:134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6424 5842 5342 4910 4.533 13 Period 13.004 12.106 11.296 10.563 9.899 9.295 8244 7367 6.628 6.002 5.468 5.008 4.611 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 Period 18.046 16.35114.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.570 20 Period 25 Period 22.023 19523 17 413 15.622 14.004 12.783 10 675 9.077 7.843 6.873 6097 5467 4.948 25.808 22.396 19.600 17 292 15372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 00 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4997 Print Done

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