Use the NPV method to determine whether Juda Products should invest in the following projects: • Project A costs $275,000 and offers eight annual net cash inflows of $59,000. Juda Products requires an annual return of 16% on projects like A. • Project B costs $395,000 and offers nine annual net cash inflows of $72,000. Juda 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 icon 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?

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Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.