Use the NPV method to determine whether Vargas Products should invest in the following projects: Project A: Costs $280,000 and offers eight annual net cash inflows of $57,000. Vargas Products requires an annual return of 14% on investments of this nature. Project B: Costs $385,000 and offers 9 annual net cash inflows of $73,000. Vargas Products demands an annual return of 12% on investments of this nature. . 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 to three decimal places, X.XXX. Use parentheses or 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. Project A: Years 1-8 Present value of annuity 0 0 Project A Project B Investment Net present value of Project A Calculate the NPV of Project B. Project B: Years 1-9 Present value of annuity Investment Net present value of Project B Requirement 2. What is the maximum acceptable price to pay for each project? Maximum Acceptable Price Project A Project B Net Cash Inflow Net Cash Inflow Annuity PV Factor (i=14%, n=8) + Annuity PV Factor (i-12%, n=9) Present Value Requirement 3. What is the profitability index of each project? (Round to two decimal places, X.XX.) Select the formula, then enter the amounts to calculate the profitability index of each project. Present Value = = = COO Profitability Index 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. Print Done X