Anna Joiner is developing a capital investment analysis for her supervisor. The proposed capital investment has an
Question:
Anna Joiner is developing a capital investment analysis for her supervisor. The proposed capital investment has an estimated residual value of $5,500 at the end of its five-year life. The company uses a 16 percent minimum rate of return. What is the present value of the residual value? Use Table in the appendix on future value and present valuetables.
Future ValueFuture value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...
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Present Value of $1 to Be Received at the End of a Given Number of Time Periods 1% 3% 4% 5% 6% 8% 10% 12% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0926 0.917 0.909 0.89 0.980 .96 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.79 0.971 0.942 095 0.889 0.864 0.840 0.816 0.794 0.772 0.75 0.712 0.961 0.951 0.906 0.883 0.822 0.784 0.747 0.713 068 0.6500.62 0.56 0.942 0.888 0.837 0.7900.746 0.705 0.666 0.630 0.596 0.564 0.507 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.923 0.853 0.78 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.4600.424 0.36 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.3880.350 0.28 0.887 0.788 0.70I 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.25 0.879 0.773 0.68I 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.870 0.758 0661 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.18 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.844 0.714 0.605 0.513 0.436 0.37 0.317 0.270 0.231 0.198 0.146 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0250 0.2120.180 0.130 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.14 0.104 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.09 0.803 0.6470.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.795 0.634 0.507 0.406 0.326 0.262 0.21 0.170 0.138 0.12 0.074 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.066 0.780 0.610 0,478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.772 0.598 0.464 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.05 0.764 586 0,450 0.347 0.268 0.207 0.16 0125 0.098 0.076 0.04 0.757 0.574 0.437 0.333 0.255 0.196 0.150 0.116 0.0900,069 0.042 0.749 0.563 0.424 0.321 0.243 0.185 0.14 0.107 0.082 0.063 0.037 0.742 0.552 0.412 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.033 0.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.0I 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.02 0.013 .0 0.00 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0708 0.683 0.636 7 I 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 18 1
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Managerial Accounting
ISBN: 978-0618777181
8th Edition
Authors: Susan V. Crosson, Belverd E. Needles
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