Use the NPV method to determine whether Rouse Products should invest in the following projects: Project A costs $280,000 and offers eight annual net cash inflows of $64,000. Rouse Products requires an annual return of 12% on projects like A. Project B costs $380,000 and offers nine annual net cash inflows of $68,000. Rouse Products demands an annual retum of 10% on investments of this nature. (Click the icon to view the present value annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) Click the icon to view the future value table.) Requirement 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 to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV of Project Als $ 1 on 7 8 4.946 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.5825.206 4.868 4.564 4.288 4.039 3.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.607 4.303 4.031 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 12 11.255 10.575 9.964 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.0924.675 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.4696.623 5.929 5.353 4.870 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 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 4.997 Periods 2 3 4 5 2% 1.000 2.020 3.060 4.122 5.204 4% 1.000 2040 3.122 4246 5.416 12% 1.000 2.120 3.374 4.779 6.353 6 7 1% 1.000 2010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11464 12808 14.192 15.618 17.086 18.599 8 9 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17293 24.297 32.030 40.568 60.402 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 24 215 27.975 21.579 23.276 27.152 31.772 33,066 36.786 45.762 57 275 47.727 54.865 73.106 98.347 66.439 79.058 113.283 164.494 120 800 154.762 259.057 442.593 10 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 11 12 13 14 15 14% 16% 18% 20% 1.000 1.000 1.000 1.000 2.140 2.160 2.180 2200 3.440 3.506 3.572 3.640 4.921 5.066 5.215 5.368 6.610 6.877 7.154 7.442 8.536 8.977 9.442 9.930 10.730 11.414 12.142 12.916 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 23.045 25.733 28.755 32.150 27 271 30.850 34.931 39.581 32.089 36.786 42.219 48.497 37.581 43.672 50.818 59.196 43.842 51.660 60.965 72.035 91.025 115.380 146.628 186.688 181.871 249.214 342.603 471.981 356.787 530.312 790.948 1,181.882 1,342.025 2,360.757 4,163 213 7,343.858 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 37.280 72.052 133.334 241.333 767.091 20 25 30 40 22.019 28.243 34.785 48.886 26.870 36.459 47.575 75 401 Periods 2 3 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 12% 0.893 0.797 0.712 0.636 0.567 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 14% 0.877 0.769 0.675 0.592 0.519 4 5 6 7 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.456 0.400 0.351 0.308 0.270 9 10 Present Value of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 0.907 0.890 0.857 0.826 0.864 0.840 0.794 0.751 0.823 0.792 0.735 0.683 0.784 0.747 0.681 0.621 0.746 0.705 0.630 0.564 0.711 0.665 0.583 0.513 0.677 0.627 0.540 0.467 0.645 0.592 0.500 0.424 0.614 0.558 0.463 0.386 0.585 0.527 0.429 0.350 0.557 0.497 0.397 0.319 0.530 0.469 0.368 0.290 0.505 0.442 0.340 0.263 0.481 0.417 0.315 0.239 0.377 0.312 0.215 0.149 0.295 0.233 0.146 0.092 0.231 0.174 0.099 0.057 0.142 0.097 0.046 0.022 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.673 0.610 0.552 0.453 16% 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 18% 20% 0.847 0.833 0.718 0.694 0.609 0.579 0.516 0.482 0.437 0.402 0.370 0.335 0.314 0.279 0.266 0.233 0.225 0.194 0.191 0.162 0.162 0.135 0.137 0.112 0.116 0.093 0.099 0.078 0.084 0.065 0.037 0.026 0.016 0.010 0.007 0.004 0.001 0.001 11 12 13 14 15 0.722 0.701 0.681 0.661 0.642 0.237 0.208 0.182 0.160 0.140 20 25 30 40 0.820 0.780 0.742 0.672 0.554 0.478 0.412 0.307 0.456 0.375 0.308 0.208 0.104 0.059 0.033 0.011 0.073 0.038 0.020 0.005 0.051 0.024 0.012 0.003 Periods 2 3 4 5 1 1.010 1.020 1.00 1.0.1 1.05] 1.020 1.CO 1.00] 1.002 1.1M 1.30 1.06] 1.093 126 1.159 1.194 1230 1.267 1.305 1344 Future Value of $1 1.060 1.US) 1124 L166 1.191 1260 1.360 1.338 1.40 56 1051 1.10 1.156 1216 1276 1.340 1,407 1.47 1.551 1.629 1262 14% 1.140 1.300 1.462 1.639 1.925 1040 1.082 1.125 1.170 1.217 1.265 1.31 1366 1.420 1. 460 12 1.120 1234 1.405 1574 1.762 11.974 2211 2476 273 3.106 20% 1.200 1.440 1.720 2074 2488 6 7 1.419 1.504 1594 1.689 1.91 1.126 1.149 1.12 1.1% 1.219 1243 1266 129 1.319 1 10 10% 1.10 1.210 1.31 14 1.611 1.V2 1.49 2.14 2.356 2.594 2.853 3.138 3.452 3.797 4-17T 1.5T 1714 1.85] 1.999 2.158 2.332 11.062 1.072 1.08 1094 1.105 1.116 1127 1.19 1.149 1.61 1 220 1.22 1.348 1. 469 166 1.10 1.346 1.561 1.611 2.100 2.435 2.826 327 3.803 4.471 5.117 5.936 6.666 7.988 9 266 19.461 40.874 65.850 1378.721 29 3 4.300 5.180 6.192 18% 1. IEO 1.392 1.643 1.39 2288 2. 700 3.165 3.759 4.435 5.234 6.176 720B 8.599 10.147 11.974 27.393 62 669 143.371 750.376 1 12 13 14 15 2518 2.195 2.502 2853 32% 3.707 4.276 4.818 5.492 6 261 7.138 1.364 1.426 1.469 1.513 1.558 1.806 2004 2427 3262 1579 1.601 1.665 1.702 1.601 1.710 1796 1.666 1980 2.079 1996 2012 2 133 2.281 2397 3.207 4292 5.743 10 286 2. P20 2997 3.172 1346 3.479 3.96 4.363 4.287 5.474 9.646 17.000 200 95.05] 7.430 8.91 10.699 12.899 15.407 20 25 30 40 1.486 1.64] 1.31] 2208 2.11 2. 668 3.243 4.BD 2.663 3.396 4.322 7040 4.661 6.848 10.063 21.725 6.727 10.635 17.49 45.259 13.743 26.462 50.950 18 884 38.338 5.396 237.376 1,469.772