Question: Use the NPV method to determine whether Rouse Products should invest in the following projects: - Project A costs $290,000 and oflers eight annual net




Use the NPV method to determine whether Rouse Products should invest in the following projects: - Project A costs $290,000 and oflers eight annual net cash inflows of $64,000. Rouse Products requires an annual return of 16% on projects like A - Project 8 costs $380,000 and offers nine annual net cash inflows of $69,000. Rouse Products demands an annual return of 14% on investments of this nature. (Cick the icon to vew the present value annuity table) (Click the icon to view the present value table) (Cick 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? Present Value of Annuity of $1 Done Reference Present Value of $1 Future Value of $1
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