Use the NPV method to determine whether Vargas Products should invest in the following projects: Project A costs $290,000 and offers eight annual net cash inflows of $62,000. Vargas Products requires an annual return of 12% on projects like A Project B costs $385,000 and offers ten annual net cash inflows of $69,000. Vargas Products demands an annual return of 14% 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 Ais Reference Reference Future Value of Annuity of $1 Present Value of Annuity of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 0.990 1.970 2.941 3.902 4.853 2% 3% 4% 5% 6% 8% 10% 12% 14% 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 16% 18% 0.862 0.847 1.605 1.566 2.246 2.174 2.798 2.690 3.274 3.127 20% 0.833 1.528 2.106 2.589 2.991 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 6% 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 2.060 3.030 3.060 3.091 3.122 3.153 3.184 4.060 4.122 4.184 4.246 4.310 4.375 5.101 5.204 5.309 5.416 5.526 5.637 6.152 6.308 6.468 6.802 6.975 7.214 7.434 7.662 7.898 8.142 8.394 8.286 8.583 8.892 9.214 9.549 9.897 9.369 9.755 10.159 10.583 11.027 11.491 10.462 10.950 11.464 12.006 12.578 13.181 8% 1.000 2.080 3.246 4.506 5.867 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 20% 1.000 2.200 3.640 5.368 7.442 6.633 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 Period 6 Period 7 Period 8 Period 9 Period 10 7.336 7.716 8.115 8.923 9.487 10.089 10.637 11.436 12.300 12.488 13.579 14.776 14.48715.937 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 4.192 Period 6 5.795 5.601 5.417 5.2425.076 4.917 4.623 4.355 4.111 3.889 3.685 Period 7 6.728 6.472 6.230 6.002 5.786 5.5825.206 4.8684.564 4.288 4.039 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 Period 9 8.566 8.1627.786 7.435 Z. 108 6.802 6.247 5.759 5.328 4.946 4.607 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.6505.216 4.833 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.4535.029 Period 12 11.255 10.575 9.954 9.3858.863 8.384 7.536 6.814 6.194 5.660 5.197 Period 13 12.134 11.348 10.635 9.9869.394 8.853 7.904 7.103 6.424 5.842 5.342 Period 14 | 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.3676.6286.002 5.468 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 Period 2018.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 6.177 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 | 8.244 7.105 6.233 4.656 4.327 4.793 4.439 4.910 4.533 5.008 4.611 5.092 4.675 Period 11 Period 12 Period 13 Period 14 Period 15 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 12.683 13.412 14.192 15.026 15.917 16.870 18.977 | 21.384 24.133 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 14.947 15.974 17.086 18.292 19.599 21.015 24.21527.975 32.393 16.097 17.29318.599 20.024 21.579 23.276 27.152 31.772 37.280 23.045 27.271 32.089 37.581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 Period 20 Period 25 Period 30 Period 40 22.019 24.297 26.870 29.778 33.066 36.786 45.76257.275 72.052 91.025 115.380 146.628 186.688 28.243 32.03036.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 34.785 40.568 47.575 56.085 | 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 48.886 60.402 75.401 95.026 120.800 154.762259.057 442.593 767.091 1,342.025 2,360.7574,163 2137,343.858 - X Reference Reference Present Value of $1 Future Value of $1 OL Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 0.990 0.980 0.971 0.962 0.952 0.980 0.961 0.943 0.925 0.907 0.971 0.942 0.915 0.889 0.864 0.961 0.924 0.888 0.855 0.823 0.951 0.906 0.863 0.822 0.784 6% 8% 10% 0.943 0.926 0.909 0.890 0.857 0.826 0.840 0.794 0.751 0.792 0.735 0.683 0.747 0.681 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 18% 20% 0.8620.847 0.833 0.743 0.7180.694 0.641 0.609 0.579 0.552 0.516 0.482 0.476 0.437 0.402 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 Period 6 0.942 0.888 0.837 0.790 0.746 Period 7 0.933 0.871 0.813 0.760 0.711 Period 8 0.923 0.853 0.789 0.731 0.677 Period 9 0.914 0.837 0.766 0.703 0.645 Period 10 0.905 0.820 0.744 0.676 0.614 0.705 0.665 0.627 0.592 0.558 0.630 0.564 0.583 0.513 0.540 0.467 0.500 0.424 0.463 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.410 0.370 0.335 0.354 0.314 0.279 0.305 0.266 0.233 0.263 0.225 0.194 0.227 0.191 0.162 Period 6 Period 7 Period 8 Period 9 Period 10 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 Period 110.896 0.804 0.722 0.650 Period 12 0.887 0.788 0.625 Period 13 0.879 0.773 0.681 0.601 Period 14 0.870 0.758 0.661 0.577 Period 15 0.861 0.743 0.642 0.555 0.585 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.429 0.350 0.287 0.397 0.319 0.257 0.368 0.290 0.229 0.340 0.263 0.205 0.315 0.239 0.183 0.237 0.208 0.182 0.160 0.140 0.195 0.162 0.135 0.168 0.137 0.112 0.145 0.116 0.093 0.125 0.099 0.078 0.108 0.084 0.065 Period 11 Period 12 Period 13 Period 14 Period 15 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 1.4771.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 1.796 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 Period 200.8200.673 0.554 0.456 0.377 Period 25 0.780 0.610 0.478 0.375 0.295 Period 30 0.742 0.552 0.412 0.308 0.231 Period 40 0.672 0.453 0.307 0.208 0.142 0.312 0.233 0.174 0.097 0.215 0.146 0.099 0.046 0.149 0.104 0.092 0.059 0.057 0.033 0.022 0.011 0.073 0.038 0.020 0.005 0.051 0.024 0.012 0.003 0.037 0.026 0.0160.010 0.007 0.004 0.001 0.001 Period 20 Period 25 Period 30 Period 40 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801