Use the NPV method to determine whether Stenback Products should invest in the following projects:Project A: Costs $260,000 and offers eight annual net cash inflows of $54,000. Stenback Products requires an annual return of 14% on investments of this nature.Project B: Costs $395,000 and offers 10 annual net cash inflows of $77,000. Stenback Products demands an annual return of 12% 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 factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative net present value.)Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A.Project A:Years1-8 Present value of annuity0InvestmentNet present value of Project ARequirementsexample1.What is the NPV of each project? Assume neither project has a residualvalue. 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.PrintNet CashInflowGet more help.Annuity PV Factor(i=14%, n=8)DoneCPresentValueReferencePeriodsPeriod 1Period 2Period 3Period 4Period 5Period 6Period 7Period 8Period 9Period 10Period 11Period 12Period 13Period 14Period 15Period 16Period 17Period 18Period 19Period 20Period 21Period 22Period 23Period 24Period 25Period 26Period 27Period 28Period 29Period 30Period 40Period 50Present Value of Ordinary Annuity of $112% 14% 15% 16% 18% 20%5% 6% 7% 8% 9% 10%0.952 0.943 0.9351.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1.605 1.566 1.5280.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.8331% 2% 3% 4%0.990 0.980 0.971 0.9621.970 1.942 1.9131.8862.941 2.8842.8292.7753.902 3.808 3.717 3.6304.580 4.452 4.329 4.212 4.1002.723 2.673 2.6243.546 3.465 3.3872.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 2.1063.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.5893.993 3.890 3.7914.853 4.7133.605 3.433 3.352 3.274 3.127 2.9915.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.3266.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.6057.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.8378.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.0319.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.494 4.19210.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.23411.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.42112.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.58313.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.72413.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.8475.029 4.656 4.3275.197 4.793 4.4395.342 4.910 4.5335.468 5.008 4,6115.575 5.092 4.67514.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.73015.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.77516.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.81217.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.198 5.877 5.316 4.84418.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.87018.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 5.973 5.384 4.89119.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 6.359 6.011 5.410 4.90920.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 6.792 6.399 6.044 5.432 4.92521.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.434 6.073 5.451 4.93722.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.464 6.097 5.467 4.94822.795 20.121 17.877 15.983 14.375 13.003 11.826 10.810 9.929 9.161 7.896 6.906 6.491 6.118 5.480 4.95623.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 6.935 6.514 6.136 5.492 4.96424.316 21.281 18.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 7.984 6.961 6.534 6.152 5.502 4.97025.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.022 6.983 6.551 6.166 5.510 4.97525.808 22.396 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.566 6.177 5.517 4.97932.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.244 7.105 6.642 6.233 5.548 4.9974.99939.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 8.304 7.133 6.661 6.246 5.554X Use the NPV method to determine whether Stenback Products should invest in the following projects:Project A: Costs $260,000 and offers eight annual net cash inflows of $54,000. Stenback Products requires an annual return of 14% on investments of this nature.Project B: Costs $395,000 and offers 10 annual net cash inflows of $77,000. Stenback Products demands an annual return of 12% 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 factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative net present value.)Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project ANet CashInflowProject A:Years1-80Present value of annuityInvestmentNet present value of Project ARequirementss example1. What is the NPV of each project? Assume neither project has a residualvalue. 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.PrintAnnuity PV Factor(i=14%, n=8)Get more help.DonePresentValue- XReferencePeriodsPeriod 1Period 2Period 3Period 4Period 5Period 6Period 7Period 8Period 9Period 10Period 11Period 12Period 13Period 14Period 15Period 16Period 17Period 18Period 19Period 20Period 21Period 22Period 23Period 24Period 25Period 26Period 27Period 28Period 29Period 30Period 40Period 50Present Value of $11% 2% 3% 4% 5% 6% 7%0.990 0.980 0.971 0.962 0.952 0.943 0.9350.980 0.961 0.943 0.925 0.907 0.890 0.8730.971 0.942 0.915 0.889 0.864 0.840 0.8160.961 0.924 0.888 0.855 0.823 0.792 0.7630.951 0.906 0.863 0.822 0.784 0.747 0.7138% 9% 10% 12% 14% 15% 16% 18% 20%0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.8330.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.6940.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.5790.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.4820.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.4020.123 0.1070.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.3350.933 0.871 0.813 0.760 0.711 0.6650.6230.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.2790.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.2330.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.1940.4630.905 0.820 0.744 0.676 0.614 0.558 0.5080.422 0.386 0.322 0.270 0.247 0.227 0.191 0.1620.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.1350.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.1120.879 0.773 0.681 0.601 0.530 0.4690.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.0930.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.0780.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.0650.252 0.218 0.1630.093 0.071 0.0540.231 0.198 0.146 0.108 0.093 0.080 0.060 0.0450.212 0.180 0.130 0.095 0.081 0.069 0.051 0.0380.194 0.164 0.116 0.083 0.070 0.060 0.043 0.0310.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.0260.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.0220.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.0180.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.0150.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.0130.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.0100.772 0.598 0464 0.361 0281 0.220 0.172 0.1350.764 0.586 0 450 0.347 0268 0207 0.161 0 1250.757 0.574 0.437 0.333 0.255 0.196 0.150 0.1160.749 0.563 0.424 0.321 0.243 0.185 0.141 0.1070.742 0.552 0.412 0.308 0.231 0.174 0.131 0.0990.672 0.453 0.307 0.208 0.142 0.097 0.067 0.0460.0870.608 0.372 0.228 0.1410.0540.0340.853 0.728 0.623 0.534 0.458 0.394 0.339 0.2920.844 0.714 0.605 0.513 0.436 0.371 0.317 0.2700.836 0.700 0.587 0.494 0.416 0.350 0.296 0.2500.828 0.686 0.570 0.475 0.396 0.3310.277 0.2320.820 0.673 0.554 0.456 0.377 0.312 0.2580.811 0.660 0.538 0.439 0.359 0.294 0.2420.803 0.647 0.522 0.422 0.342 0.278 0.2260.795 0.634 0.507 0.406 0.326 0.262 0.2110.788 0.622 0.492 0.390 0.310 0.247 0.1970.780 0.610 0.478 0.375 0.295 0.2330.0210.106 0.084 0.053 0.033 0026 0.021 0.014 0.0090.098 0.076 0.047 0.029 0023 0.018 0.011 0.0070.090 0.069 0.042 0.026 0.020 0.016 0.010 0.0060.082 0.063 0.037 0.022 0.017 0.014 0.008 0.0050.075 0.057 0.033 0.020 0.015 0.012 0.007 0.0040.032 0.022 0.011 0.005 0.004 0.003 0.001 0.0010.013 0.009 0.003 0.001 0.001 0.001X→er

Name: Use the NPV method to determine whether Stenback Products should inve
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Description: Use the NPV method to determine whether Stenback Products should invest in the following projects:Project A: Costs $260,000 and offers eight annual net cash inflows of $54,000. Stenback Products requires an annual return of 14% on investments of thi

Net Present Value(NPV) is excess of PV of inflows over PV of outflows related to proposal and…

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Use the NPV method to determine whether Stenback Products should invest in the following projects: . • Project A: Costs $260,000 and offers eight annual net cash inflows of $54,000. Stenback Products requires an annual return of 14% on investments of this nature. Project B: Costs $395,000 and offers 10 annual net cash inflows of $77,000. Stenback Products demands an annual return of 12% 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 factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative ne Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A: Years 1-8 Present value of annuity 0 Investment Net present value of Project A Requirements Net Cash Annuity PV Factor Inflow (i-14%, n=8) 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. Present Value - X 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 Present Value of Ordinary Annuity of $1 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 155 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.87 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.62 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.28 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.85 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.35 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.78 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.16 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.48 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.77 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.01 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.23 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.42 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.58 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.72 13 866 12 849 11.938 11.118 10.380 9712 9.108 8.559 8061 7.606 6311 6142 584