Question: 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

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 $56,000. Vargas Products requires an annual return of 16% on projects like A.
• Project B costs $380,000 and offers nine annual net cash inflows of $74,000. Vargas Products demands an annual return of 12% on investments of this nature.
Requirement
What is the NPV of each project? What is the maximum acceptable price to pay for each project?

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