Use the NPV method to determine whether Smith Products ahould invest in the tollowing projocts: - Projoct A : Costs $275,000 and ofers seven annual net cash inflows of $57,000. Smith Products requires an annual retuen of 12% on investments of this nature. - Projoct B. Costs $400,000 and ctlors 10 annual net cash inflows of $72,000, Smith Products domands an annual retum of 10% on investments of this nature. (Cick the icon to view Present Value of \$1 table.) (Click the icon to view Present Value of Ordinary Amnuity of $1 table.) Read the cequirements Requirement 1. What is the NPV of each projoct? Assume neither project has a residual value. Round to two decimal places. (Enter any factor amounts to three decimal places, X0. Use parentheses or a minus sign for a negative net present value) Cacluate the NPV (net present value) of each projoct Begin by colculoning the NPV of Project A Use the NPV method to determine whether Smith Products should imest in the following projects: - Project A: Costs $275,000 and oflers seven sfnual net cash infows of $57,000. Smith Products requires an annual return of 12% on investments of this nabice. - Projoct B: Costs $400,000 and offers 10 annual net cash inflows of $72,000. Smith Products demands an annual return of 10% on invesiments of this nafure. (Click the icon to view Prosent Value of \$\$ table.) (Click the icon to view Present Valuo of Ondinary Annuty of $1 table) Read the requirements Requirement 2 . What is the maximum acceptable price to pay for each project? Requirement 3. What is the profitability index of each peoject? (Round to two decimat places, XX ) Shiart the fermula. then enter the amounts to calculate the proftablity index of each peojoct. Requirements 1. What is the NPV of each project? Assume nener 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. nt 3. What ormula, then enter the amounts to calculate the profitability index of each project