Use the NPV method to determine whether Rouse Products should invest in the following projects:

View the projects.

View the present value of $$1$ table.

View the future value of $$1$ table.

View the present value of annuity of $$1$ table.

View the future value of annuity of $$1$ 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 A is

Projects

Project A costs $$290,000$ and offers eight annual net cash inflows of $$55,000.$

Rouse Products requires an annual return of $12\%$ on projects of this nature.

Project $B$ costs $$370,000$ and offers nine annual net cash inflows of $$69,000.$

Rouse Products demands an annual return of $14\%$ on investments of this

nature.