Use the NPV method to determine whether Vargas Products should invest in the following projects: • Project A costs $280,

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Use the NPV method to determine whether Vargas Products should invest in the following projects: • Project A costs $280,

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Use The Npv Method To Determine Whether Vargas Products Should Invest In The Following Projects Project A Costs 280 1
Use The Npv Method To Determine Whether Vargas Products Should Invest In The Following Projects Project A Costs 280 1 (33.66 KiB) Viewed 5 times
Use The Npv Method To Determine Whether Vargas Products Should Invest In The Following Projects Project A Costs 280 2
Use The Npv Method To Determine Whether Vargas Products Should Invest In The Following Projects Project A Costs 280 2 (88.72 KiB) Viewed 5 times
Use The Npv Method To Determine Whether Vargas Products Should Invest In The Following Projects Project A Costs 280 3
Use The Npv Method To Determine Whether Vargas Products Should Invest In The Following Projects Project A Costs 280 3 (75.33 KiB) Viewed 5 times
Use The Npv Method To Determine Whether Vargas Products Should Invest In The Following Projects Project A Costs 280 4
Use The Npv Method To Determine Whether Vargas Products Should Invest In The Following Projects Project A Costs 280 4 (81.92 KiB) Viewed 5 times
Use The Npv Method To Determine Whether Vargas Products Should Invest In The Following Projects Project A Costs 280 5
Use The Npv Method To Determine Whether Vargas Products Should Invest In The Following Projects Project A Costs 280 5 (86.27 KiB) Viewed 5 times
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. (Click the icon to view the present value annuity table.) (Click the icon to view the present value table.) (Click the loon to view the future value table.) (Click the icon to view the future value annuity table.) Requirement What is the NPV of each project? What is the maximum acceptable price to pay for each project? I Question Viewer Calculate the NPV of each project. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative not present values.) The NPV of Project Ais The NPV of Project B is Now calculate the maximum acceptable price to pay for each project. (Round your answers to the nearest whole dollar.) Project A is Project B is
4 Reference Periods 1% 2% 3% Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 0.923 Period 9 0.914 Period 10 0.905 Period 11 Period 12 Period 13 Period 14 Period 15 0.990 0.980 0.971 0.962 0.980 0.961 0.943 0.925 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.942 0.933 0.896 0.887 0.879 0.870 0.861 Period 20 0.820 Period 25 0.780 Period 30 0.742 Period 40 0.672 Present Value of $1 6% 8% 0.943 0.926 0.857 0.773 0.758 0.743 5% 0.952 0.907 0.890 0.888 0.837 0.790 0.746 0.705 0.871 0.813 0.760 0.711 0.665 0.853 0.789 0.731 0.677 0.627 0.837 0.766 0.703 0.645 0.592 0.820 0.744 0.676 0.614 0.558 0.463 0.804 0.722 0.650 0.585 0.527 0.429 0.397 0.788 0.701 0.625 0.557 0.497 0.681 0.601 0.530 0.469 0.368 0.661 0.577 0.505 0.442 0.642 0.555 0.481 0.417 0.456 0.375 0.673 0.554 0.610 0.478 0.552 0.412 0.308 0.231 0.174 0.453 0.307 0.208 0.142 0.097 10% 0.909 0.826 0.751 0.683 0.621 - X 12% 14% 16% 18% 0.797 0.769 0.743 0.718 0.694 20% 0.893 0.877 0.862 0.847 0.833 0.712 0.675 0.641 0.609 0.579 0.636 0.592 0.552 0.516 0.482 0.567 0.519 0.476 0.437 0.402 0.630 0.564 0.507 0.583 0.513 0.452 0.540 0.467 0.404 0.500 0.424 0.361 0.308 0.456 0.410 0.370 0.335 0.400 0.354 0.314 0.279 0.351 0.305 0.266 0.233 0.263 0.225 0.194 0.386 0.322 0.270 0.227 0.191 0.162 0.350 0.287 0.237 0.195 0.162 0.135 0.319 0.257 0.208 0.168 0.137 0.112 0.290 0.229 0.182 0.145 0.116 0.093 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.073 0.051 0.037 0.026 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.046 0.022 0.011 0.005 0.003 0.001 0.001 0.377 0.312 0.215 0.149 0.104 0.295 0.233
Periods 1% 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 20 Period 25 Period 30 Period 40 Future Value of Annuity of $1 4% 5% 14% 6% 8% 10% 12% 1.000 1.000 1.000 1.000 1.000 2% 3% 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 3.506 6.877 6.152 6.308 6.468 6.633 6.802 6.975 7.214 7.434 7.6627.898 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 7.336 7.716 8.923 9.487 10.637 11.436 12.300 12.488 13.579 14.776 14.487 15.937 17.549 16% 1.000 2.160 18% 1.000 2.180 3.572 5.215 7.154 8.977 9.442 8.115 8.536 10.089 10.730 11.414 12.142 15.327 13.233 14.240 16.085 17.519 19.086 19.337 21.321 23.521 20% 1.000 2.200 3.640 5.368 7.442 25.733 28.755 30.850 34.931 36.786 42.219 43.672 50.818 51.660 60.965 9.930 12.916 16.499 20.799 25.959 23.045 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 27.271 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 37.581 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 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 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 115.380 146.628 186.688 249.214 342.603 471.981 32.150 39.581 48.497 59.196 72.035
5% Periods 1% 2% 3% 4% 1.010 1.020 1.030 1.040 1.020 1.040 1.061 1.082 1.103 1.050 1.030 1.061 1.093 1.125 1.158 1.216 1.041 1.082 1.126 1.170 1.051 1.104 1.159 1.217 1.276 Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period S Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1.062 1.126 1.194 1.072 1.149 1.230 1.083 1.172 1.267 1.369 1.094 1.195 1.305 1.423 1.105 1.219 1.344 1.480 1.138 1.149 1.161 Future Value of $1 6% 8% 1.080 1.166 1.260 1.360 1.464 1.469 1.611 1.762 2.653 2.666 3.386 3.243 4.322 4.801 7.040 1.060 1.124 1.191 1.262 1.338 1.220 1.486 1.806 2.191 1.282 1.641 2.094 1.348 1.811 2.427 1.489 2.208 3.262 1.265 1.340 1.419 1.587 1.772 1.316 1.407 1.504 1.714 1.949 1.477 1.594 1.851 2.144 1.551 1.689 1.999 2.358 2.773 1.629 1.791 2.159 2.594 3.106 1.127 1.116 1.243 1.384 1.539 1.710 1.898 1.268 1.426 1.601 1.796 2.012 2.518 1.294 1.469 1.665 1.886 2.133 1.980 2.261 2.397 1.319 1.513 1.732 1.346 1.558 1.801 2.079 12% 14% 16% 18% 1.120 1.140 1.160 1.180 1.210 1.254 1.300 1.346 1.392 1.331 1.405 1.482 1.561 1.643 1.939 2.288 10% 1.100 1.574 1.689 1.974 2.195 2.436 2.700 2.211 2.502 2.826 3.185 2.476 2.853 3.278 3.759 3.252 3.803 4.435 3.707 4.411 5.234 1.811 1.925 2.100 2.332 2.853 3.479 6.176 4.226 5.117 3.138 3.896 4.818 5.936 7.288 2.720 3.452 4.363 5.492 6.886 8.599 2.937 3.797 3.172 4.177 5.474 4.887 6.261 7.988 10.147 7.138 9.266 11.974 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 3.207 4.661 6.727 9.646 13.743 19.461 27.393 4.292 38.338 6.848 10.835 17.000 26.462 40.874 62.669 95.396 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772
Present Value of Annuity of $1 Periods 1% 2% 3% 5% 0.990 0.980 0.971 0.962 0.952 1.970 1.942 1.913 1.886 1.859 1.833 2.941 2.884 2.829 2.775 2.723 6% 8% 10% 12% 0.943 0.926 0.909 0.893 1.783 1.736 1.690 1.647 0.877 0.862 0.847 0.833 14% 16% 18% 20% 1.605 1.566 1.528 2.673 2.577 2.487 2.402 2.322 2.174 2.106 3.546 3.465 2.690 2.589 4.329 4.212 3.993 3.433 3.274 3.127 2.991 6.728 7.652 3.837 5.759 5.328 4.946 4.607 4.303 4.031 8.566 9.471 8.983 4.833 4.494 4.192 2.246 3.312 3.170 3.037 2.914 2.798 3.791 3.605 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 8.162 7.786 7.435 7.108 6.802 6.247 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4.997 Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 3.902 3.808 3.717 3.630 4.853 4.713 4.580 4.452 Period 11 10.368 Period 12 11.255 Period 13 12.134 Period 14 13.004 Period 15 13.865 3.326 3.605
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