Answer Happy

Le the NPV method to determine whether McKnight Products should invest in the towing prope • Project A Cos $295.000 and others seven annual net cach intows of $56,000 Monight Products requires an annual tom of 12% on events of the Project & Cods $300,000 and offers 10 annual net cash infows of 575.000 Monight Products demands an annual rum of 10% on investments of th (Cack the icon to view Preserd Value of $1 table) (Ckck the icon to view Present Value of Ordrary Armuty of $1 t Read the requirements Requirement 1. What is the NTV of each perect? Assume nether project has a residual value Round to two decimal place any tador amounts to three decins plio e para sa intre value) Caculate the NPV (net present value) of each project Degn by calculating the NPV of Projec Net Cash inflow Annuity PV Factor 0-12%, 1-7) Project A Years 9 Present value of annuty investment Nt present value of Proyect Calculate the NPV a Project Project B Years Net Cash inflow Annuity PV Factor 0-10%-10 Present Value Present Value Tine Remaining 15503
Use the NPV method to determine whether McKnight Products should invest in the following projects Project A Costs $295,000 and offers seven annual net cash inflows of $56,000. McKnight Products requires an annual return of 12% on investments of this nature. Project B Costs $390,000 and offers 10 annual net cash inflows of $75,000 McKnight Products demands an annual return of 10% on investments of this nature (Click the icon to view Present Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of $1 table) Read the requirements Requirement 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. (Enter any tactor amounts to three decimal places, XXXX Use parem value) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A Annuity PV Factor Net Cash Inflow (-12%, n=7) Project A Years 1-7 0 Present value of annuity Investment Net Calculate the NPV of Project B Project B Years present value of Project A Net Cash Inflow Annuity PV Factor ((-10%, n-10) Present Value CED Present Value
of $1 table.) CECH ME 4H THUturoy aces. (Enter any factor amounts to three decimal places, XXXX. Use parentheses or a minus sign for a negative net present
(Click the icon to view Present Value of $1 table.) Read the requirements. Calculate the NPV of Project B. Project B: Years 1-10 0 Present value of annuity Project A Project B Investment Maximum Net Cash Inflow Net present value of Project B Requirement 2. What is the maximum acceptable price to pay for each project? Acceptable Price (Click the icon to view Present Value of Ordinary Annuity of $1 table) Annuity PV Factor (-10%, n-10) Present Value
Read the requirements. 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 Requirement 3. What is the profitability index of each project? (Round to two decimal places, XXX) Select the formula, then enter the amounts to calculate the profitability index of each project. Project A Project B = EXCE Profitability Index
McKnig ven an annua 1 tab table of ea calcu Reference Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 1% 2% 0.990 0980 0.980 0961 0971 0942 0961 0.924 0888 0.951 0.906 0.942 0888 0.933 0.871 Present Value of $1 6% 0943 14% 16% 18% 15% 20% 12% 9% 10% 0917 0909 0893 0877 0.870 0862 0847 0833 0842 0826 0.797 0.769 0756 0743 0718 0694 0772 0751 0712 0675 0658 0641 0609 0579 0708 0683 0636 0552 0572 0552 0516 0482 0.747 0713 0681 0650 0621 0567 0519 0497 0.476 0437 0.402 7% 8% 0935 05026 0.890 0873 0857 0840 0816 0794 0.792 0763 0.735 3% 4% 5% 0952 0971 0.962 0943 0.925 0907 0915 0889 0.864 0.855 0.823 0.822 0.784 0.863 0.837 0.790 0.746 0.705 0813 0760 0711 0.665 0.923 0853 0914 0837 0583 0547 0513 0452 0.630 0.596 0.564 0507 0456 0432 0410 0.370 0.335 0400 0376 0354 0314 0279 0.582 0.540 0502 0.467 0.404 0351 0.327 0.305 0266 0233 0.766 0.703 0.645 0.592 0.544 0.500 0 460 0424 0361 0.308 0284 0263 0225 0.154 0905 0.820 0.744 0676 0614 0.558 0508 0463 0.422 0.386 0322 0270 0247 0227 0.191 0.162 0789 0731 0677 0627 0.666 0623 0.896 0.804 0.722 0.650 0585 0527 0887 0788 0701 0879 0773 0.681 0870 0.758 0661 0861 0.743 0642 0388 0.350 0.287 0237 0215 0.195 0.162 0.135 0.356 0319 0257 0208 0.187 0.168 0.137 0.112 0.326 0290 0229 0.182 0163 0145 0.116 0093 0299 0.263 0205 0.160 0.141 0.125 0.099 0.078 0.275 0.239 0.183 0140 0.123 0108 0084 0.065 0475 0429 0625 0.557 0497 0444 0.397 0 601 0.530 0469 0415 0.368 0577 0505 0442 0388 0340 0555 0481 0417 0.362 0315 0534 0458 0513 0436 0371 0317 0270 0.853 0728 0 623 0394 0339 0292 0252 0218 0.163 0844 0714 0605 0231 0.198 0 146 0836 0700 0587 0 494 0416 0350 0296 0250 0212 0 180 0 130 Print Done 0.123 0.107 0.093 0.071 0054 0108 0.093 0000 0.060 0045 0.095 0.081 0069 0.051 0.038
Cnid ar nua abl ble of ea alcu Reference Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Period 26 Period 27 Period 28 Period 29 Period 30 Period 40 Period 50 This testido DORNET 0879 0773 0681 0601 0.530 0469 0415 0.870 0.758 0.661 0.577 0.505 0442 0.388 0.362 0.315 0368 0326 0290 0229 0.182 0163 0.145 0.116 0053 0.340 0299 0263 0.205 0.160 0.141 0.125 0.099 0.078 0275 0239 0.183 0.140 0.123 0.108 0084 0.065 0.292 0252 0218 0.163 0.123 0.107 0.093 0.071 0.054 0.231 0.198 0.146 0.108 0.093 0.000 0.060 0.045 0212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 0232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 0215 0.178 0.149 0.104 0073 0.061 0.051 0.037 0.026 0.844 0.714 0.605 0.513 0.836 0.700 0.587 0.828 0.686 0.820 0.673 0.811 0.660 0.803 0.647 0.861 0.743 0.642 0.555 0.481 0417 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0436 0.371 0317 0270 0.494 0416 0.350 0296 0.250 0.570 0475 0.396 0.331 0277 0.554 0.456 0.377 0.312 0258 0.538 0.439 0.359 0294 0242 0.199 0 164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 0.522 0422 0.342 0278 0226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0018 0.795 0.634 0.507 0.406 0.326 0262 0211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 0.788 0.622 0.492 0.390 0.310 0247 0.197 0.158 0.126 0.102 0.066 0043 0.035 0028 0019 0013 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 0.772 0.598 0.464 0.361 0281 0220 0.172 0.135 0.106 0.084 0.053 0.033 0.025 0.021 0.014 0.009 0.764 0.586 0.450 0.347 0.268 0.207 0.161 0125 0096 0.076 0047 0.029 0.023 0.018 0011 0007 0.757 0.574 0.437 0.333 0255 0 195 0,150 0.116 0.090 0.069 0.042 0.026 0.020 0.016 0010 0.006 0.749 0.563 0424 0.321 0243 0.185 0.141 0.107 0082 0.063 0.037 0022 0.017 0014 0.008 0.005 0 742 0552 0412 0 308 0.231 0.174 0.131 0.099 0.075 0057 0.033 0.020 0015 0.012 0.007 0.004 0.672 0.453 0307 0.208 0142 0.097 0.067 0.046 0.032 0.022 0.011 0.005 0.004 0.003 0.001 0.01 0608 0372 0228 0141 0087 0054 0034 0013 0.009 0.003 0.001 0.001 0.001 0021 Donn . X - ssib
hether McKnig fers seven an affers 10 annua alue of St tabl ect B am acceptable lity index of ea mounts to calcu Reference Penoda Period 1 Period 2 Period 2 13 Period 4 Period 5 Periodi Period 7. Period Period 9. h 5=23. 63 66 moni in U 00 as endsa RED TEL BG BEDBER Ans IEEE FREEN DR5 es 335 000 电路站 ( 内地新发发 桔 266 55 发設 客成為 Present Value of Ordinary Annuity of $1 nore 收 inpe enegg wait Print we acc 1764 证 200444 KE-IN: 978 6215 Done 南商業新選 排氣院 666; UN 6633 GSM 585固件 保洗 and35 mom m Jae 脂送器 自由客 NNN 製品男搭俱到 張家維修 维勒希3號 201 4455A Time Remaining: 00 53.20 sut
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ch pro d to tv inde Requirements Pumuny of laurd.) 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 Profitability Index -X Done