Use the NPV method to determine whether Smith Products should invest in the following projects: - Project A: Costs $280,000 and offers seven annual net cash inflows of $54,000. Smith Products requires an annual return of 12% on investments of this nature. - Project B: Costs $390,000 and offers 9 annual net cash inflows of $70,000. Smith Products demands an annual retum 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 lo three decimal places, XXXX Use parentheses of 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 Reference Reference Reference Reference Requirements 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. XXOX. Use parentheses or a minus sign for a negative ret present viluei Caclulate the NPV (net present value) of nach project. Begin by calculating the NPV of ProjectA