Use the NPV method to determine whether Vargas Products should invest in the following projects: Project A costs $280,000 and offers seven annual net cash inflows of $61,000. Vargas Products requires an annual return of 12% on projects like A. Project B costs $390,000 and offers nine annual net cash inflows of $74,000. Vargas Products demands an annual return of 10% on investments of this nature. (Click the icon to view the present value annuity table.) (Click the icon to view the present value table.) (Click 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? 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 $ Present Value of Annuity of $1 Periods 5.242 UGD Gn o vo own 1% 2% 3% 4% 5% 6% 8% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 1.970 1.942 1.913 1.886 1.859 1.833 1.783 2.941 2.884 2.829 2.775 2.723 2.673 2.577 3.902 3.808 3.717 3.630 3.546 3.465 3.312 4.853 4.713 4.580 4.452 4.329 4.212 3.993 5.795 5.601 5.417 5.076 4.917 4.623 6.728 6.472 6.230 6.002 5.786 5.582 5.206 7.652 7.325 7.020 6.733 6.463 6.210 5.747 8.566 8.162 7.786 7.435 7.108 6.802 6.247 9.471 8.983 8.530 8.111 7.722 7.360 6.710 10.368 9.787 9.253 8.760 8.306 7.887 7.139 11.255 10.575 9.954 9.385 8.863 8.384 7.536 12.134 11.348 10.635 9.986 9.394 8.853 7.904 13.004 12.106 11.296 10.563 9.899 9.295 8.244 13.865 12.849 11.938 11.118 10.380 9.712 8.559 18.046 16.351 14.877 13.590 12.462 11.470 9.818 22.023 19.523 | 17.413 | 15.622 14.094 | 12.783 10.675 25.808 22.396 19.600 17.292 15.372 13.765 11.258 10% 12% 0.909 0.893 1.736 1.690 2.487 2.402 3.170 3.037 3.791 3.605 4.355 4.111 4.868 4.564 5.335 4.968 5.759 5.328 6.145 5.650 6.495 5.938 6.814 6.194 7.103 6.424 7.367 6.628 7.606 6.811 8.514 7.469 9.077 7.843 9.4278.055 14% 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 5.453 5.660 5.842 6.002 6.142 6.623 6.873 7.003 16% 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 4.793 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.910 5.029 5.197 5.342 5.468 5.575 5.929 6.097 6.177 5.008 5.092 5.353 5.467 5.517 Periods 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 4% 0.962 0.925 0.889 20% 0.833 0.694 0.579 0.482 0.402 0.864 0.888 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.820 0.780 0.742 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 su un oo Voow 18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.673 0.610 0.552 Present value of $1 5% 6% 8% 10% 12% 0.952 0.943 0.926 | 0.909 | 0.893 0.907 0.890 0.857 0.826 0.797 0.840 0.794 0.751 0.712 0.823 0.792 0.735 0.683 0.636 0.784 0.747 0.681 0.621 0.567 0.746 0.705 0.630 0.564 0.507 0.711 0.665 0.513 0.452 0.677 0.627 0.540 0.467 0.404 0.645 0.592 0.500 0.424 0.361 0.614 0.558 0.463 0.386 0.322 0.585 0.527 0.429 0.350 0.287 0.557 0.497 0.397 0.319 0.257 0.530 0.469 0.368 0.290 0.229 0.505 0.442 0.340 0.263 0.205 0.481 0.417 0.315 0.239 0.183 0.377 0.312 0.215 0.149 0.104 0.295 0.233 0.146 0.092 0.059 0.231 0.174 0.099 0.057 0.033 0.863 0.837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.554 0.478 0.412 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.456 0.375 0.308 16% 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.051 0.024 0.012 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.237 0.208 0.182 0.160 0.140 0.073 0.038 0.020 0.162 0.137 0.116 0.099 0.084 0.037 0.016 0.007 0.026 0.010 0.004 Periods 1% 3% 1.000 2.030 18% 1.000 2.180 1.000 2.010 3.030 4.060 5.101 3.091 4% 1.000 2.040 3.122 4.246 5.416 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 14% 1.000 2.140 3.440 4.921 6.610 3.572 4.184 5.309 5.867 GOVOWN 6.468 6.152 7.214 8.286 9.369 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 24.215 27.975 21.579 23.276 27.152 31.772 33.066 36.786 45.762 57.275 47.727 54.865 73.106 98.347 66.439 79.058 113.283 164.494 9.755 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 26.870 36.459 47.575 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 37.280 72.052 133.334 241.333 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 10.462 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 16% 1.000 2.160 3.506 5.066 6.877 8.977 11.414 14.240 17.519 21.321 25.733 30.850 36.786 43.672 51.660 115.380 249.214 530.312 10.950 12.169 13.412 14.680 15.974 17.293 24.297 8.536 10.730 13.233 16.085 19.337 23.045 27.271 32.089 37.581 43.842 91.025 181.871 356.787 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 186.688 471.981 1,181.882 5.215 7.154 9.442 12.142 15.327 19.086 23.521 28.755 34.931 42.219 50.818 60.965 146.628 342.603 790.948 OG 32.030 40.568 Periods 2% 1% 1.010 1.020 1.030 1.041 4% 1.040 1.082 12% 1.120 1.254 1.405 Future Value of $1 6% 8% 1.060 1.080 1.124 1.166 1.191 1.260 1.262 1.360 1.338 1.469 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.125 5% 1.050 1.103 1.158 1.216 1.276 1.340 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 14% 1.140 1.300 1.482 1.689 1.925 ovo AWNE 1.574 16% 1.160 1.346 1.561 1.811 2.100 2.436 1.051 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 1.170 1.217 1.265 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 1.316 1.407 2.826 1.172 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 4.300 3.278 3.803 4.411 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 2.332 1.762 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 1.195 1.219 1.243 1.268 1.294 1.319 1.346 1.486 1.641 1.811 2.853 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147 11.974 27.393 62.669 143.371 1.477 1.551 1.629 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4.322 1.384 1.426 1.469 1.513 1.558 1.898 2.012 2.133 2.261 2.397 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 2.518 2.720 2.937 3.172 4.661 6.848 10.063 4.887 3.138 3.452 3.797 4.177 6.727 10.835 17.449 5.160 6.192 7.430 8.916 10.699 12.839 15.407 38.338 95.396 237.376 5.117 5.936 6.886 7.988 9.266 19.461 40.874 85.850 MS G 1.806 2.094 2.427 5.474 9.646 17.000 29.960 3.207 4.292 5.743