Use the NPV method to determine whether Smith Products should invest in the following projects.

*Project A costs $265,000 and offers seven annual net cash inflows of $63,000. Smith Products requires an annual return of 12% on projects like A

- Project B costs $380,000 and offers nine annual net cash inflows of $66,000. Smith Products demands an annual return of 14% on investments of this nature.

Requirement

What is the NPV of each project? What is the maximum acceptable price to pay for each project?

(Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.)

- Frogct A costs $265,000 and offers wiven anrual nel cash inflerw of 563.000. Sinth Products requirss an annual raturn of 12% on projects ike A ICick tha icon to vhw Be prisient value annily table). (Cld the icos to vinw the gencent value lable) (Cick the ican bo vew the hutien vaters tabier). Roquirenent What is the NpV of each project? What is the maximum acceptable price lo pay for each project? The RPV of Proiectais