Use the NPV method to determine whether Root Products should invest in the following projects: Project A: Costs $295,000 and offers eight annual net cash inflows of $56,000. Root Products requires an annual return of 12% on investments of this nature. Project B: Costs $395,000 and offers 9 annual net cash inflows of $76,000. Root Products demands an annual return of 10% 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.) 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 Annuity PV Factor Present Years Inflow (i=12%, n=8) Value 1-8 Present value of annuity Requirements 0 Investment Net present value of Project A Calculate the NPV of Project B. 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. 2. What is the maximum acceptable price to pay for each project? 3. What is the profitability index of each project? Round to two decimal places. Project B: Net Cash Present Annuity PV Factor (i=10%, n=9) Years Inflow Value 1-9 Present value of annuity 0 Investment Print Done Net present value of Project B Requirement 2. What is the maximum acceptable price to pay for each project? Use the NPV method to determine whether Root Products should invest in the following projects: Project A: Costs $295,000 and offers eight annual net cash inflows of $56,000. Root Products requires an annual return of 12% on investments of this nature. Project B: Costs $395,000 and offers 9 annual net cash inflows of $76,000. Root Products demands an annual return of 10% 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.) Read the requirements Project B: Net Cash Present Annuity PV Factor (i=10%, n=9) Years Inflow Value Requirements 1-9 Present value of annuity 0 Investment Net present value of Project B 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. 2. What is the maximum acceptable price to pay for each project? 3. What is the profitability index of each project? Round to two decimal places. Requirement 2. What is the maximum acceptable price to pay for each project? Maximum Acceptable Price Print Done Project A Project B 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. Profitability Index Project A Project B