Moates Corporation has provided the following data concerning an investment project that it is considering: Initial investment
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Question:
Moates Corporation has provided the following data concerning an investment project that it is considering:
Initial investment | $ | 290,000 | |
Annual cash flow | $ | 131,000 | per year |
The expected life of the project | 4 | years | |
Discount rate | 9 | % | |
View Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.
The net present value of the project is closest to:
a. $134,309
b. $290,000
c. $(159,000)
d. $(134,309)
Transcribed Image Text:
EXHIBIT 120-1 Pretent Value of $t. Periods 4% 5% 6% % 9% 10% 1% 125 14% 15% 16% 17% 19% 20% 21s 22% 22% 24% 25% 0962 0952 0943 0935 0926 0917 0909 0901 0893 0885 0877 0870 0862 0855 OB47 0 840 0833 0826 0820 O8D 0806 0800 0925 0907 0890 0873 0857 0842 0826 OR12 0797 0783 0769 0756 0743 0731 0718 0 706 0694 0683 0672 0661 0650 0640 O 889 0864 0840 086 0794 0772 0751 0731 0712 0693 0675 0658 064t 0624 0609 0593 O579 0564 0551 0537 0 524 0512 O855 O823 0792 0763 0735 0708 0683 0659 0636 0613 0.592 0572 0552 0534 056 0499 0482 0.467 0451 0437 0423 040 O822 0784 0747 0713 0681 0650 0621 0593 0567 0543 0519 0497 0476 0456 0437 0419 0402 0386 0370 0355 0341 0328 3 0790 0746 0705 0666 0630 0596 0564 0535 0507 0480 0456 0432 040 0390 0370 0352 0335 0319 0303 0289 0 275. 0262 0760 0711 0665 0623 0583 0547 0513 0482 0452 0425 0400 0376 0354 0333 0314 0296 0.279 0263 0249 0235 0222 0210 0731 0677 0627 0582 0540 0502 0467 0434 0404 0376 0351 0327 0305 0285 0266 0249 0233 0218 0204 0191 0179 0168 0703 0645 0592 0544 0500 0460 0424 0391 0361 0333 0308 0284 0263 0243 0225 0 209 0194 0180 0167 0155 0144 0134 10 0676 0614 0558 0508 0463 0422 0386 0352 0322 0295 0270 0247 0227 0208 0191 0176 0162 0149 037 0126 o16 0107 11 0650 0585 0527 0475 0429 0388 0350 0317 0287 0261 0 237 0215 0195 0178 O62 0148 0135 0123 0112 0103 0094 0086 12 0625 0557 0497 0444 0397 0356 0319 0286 0257 0231 0208 0187 O68 0152 a137 0124 0112 0102 0092 0083 0076 0069 13 0601 0530 0469 0415 0368 0326 0290 0258 0229 0204 0182 0163 045 0130 o16 0104 0093 0084 0075 0068 0061 0055 14 0577 0505 0442 0 388 0340 0299 0263 0232 0205 0181 0160 0141 0125 o11 0099 0 088 0078 0069 0062 0055 0049 0044 15 0555 0481 0417 0362 0315 0275 0239 0209 0183 0160 0140 0123 008 0095 0084 0074 0065 0057 0051 0045 O040 0035 16 0534 0458 0394 0339 0292 0252 0218 0188 063 0141 0123 0107 0093 0081 0071 0062 0054 0047 0042 0036 0032 0028 0513 0436 0371 0317 0270 0231 0198 0170 0146 0125 0108 0093 0080 0069 0060 0052 0045 0039 0034 0030 0026 0023 0.494 0416 0350 0296 0250 0212 0180 0153 030 om 17 18 0095 0081 0069 0059 0051 0044 0038 0032 0028 0024 0021 008 0 475 0396 0331 0277 0232 0194 0164 0138 o16 0098 0083 0070 0060 0051 0043 0037 0031 0027 0023 0020 0017 0014 0456 0377 0312 0258 0215 0178 0149 0124 0104 0087 0073 0061 005t 0043 0037 0031 0026 0022 009 006 0014 0012 19 20 21 0439 0359 0294 0242 0199 0164 0135 o12 0093 0077 0064 0053 0044 0037 0031 0026 0022 0018 005 003 0on 0009 22 0422 0342 0278 0226 0184 0150 0123 0101 0083 0068 0056 0046 0038 0032 0026 0022 008 0015 0013 0011 0009 0007 23 0406 0326 0262 0211 0170 0138 012 0091 0074 0.060 0049 0040 0033 0027 0022 0018 005 0012 0010 0009 0007 0006 24 0390 0310 0247 0197 0158 0126 0102 0082 0066 0053 0043 0035 0028 0023 009 0015 0013 000 0008 0007 0006 0005 25 0375 0295 0233 O184 0146 0116 0092 0074 0059 0047 0038 0030 0024 0020 006 003 0010 009 0007 0006 0005 0004 26 0.361 0281 0220 0172 0135 0306 0084 0066 0053 0042 0033 0026 0021 O07 004 0on 0009 007 006 0005 0004 0003 0347 0268 0207 061 0125 0098 0076 0060 0047 0037 0029 0023 0018 0014 0on 27 0009 0007 006 0005 0004 0003 0002 28 0333 0255 0196 0150 a16 000 0069 0054 0042 0033 0026 0020 00% 0012 000 0008 006 0005 0004 0003 0002 0002 29 0321 0243 0185 0141 0107 0082 0063 0048 0037 0029 0022 0o 004 0on 0008 0006 005 0004 0003 0002 0002 0002 30 0308 0231 0174 0131 0099 0075 0057 0044 0033 0026 0020 0015 0012 0009 0007 0005 004 0.003 0.003 0002 0002 0001 40 0208 0142 0097 0067 0046 0032 0022 0015 0on 0008 0005 004 0003 0002 0001 o001 0001 0000 0000 0000 O000 0000 EXHIBIT 120-1 Pretent Value of $t. Periods 4% 5% 6% % 9% 10% 1% 125 14% 15% 16% 17% 19% 20% 21s 22% 22% 24% 25% 0962 0952 0943 0935 0926 0917 0909 0901 0893 0885 0877 0870 0862 0855 OB47 0 840 0833 0826 0820 O8D 0806 0800 0925 0907 0890 0873 0857 0842 0826 OR12 0797 0783 0769 0756 0743 0731 0718 0 706 0694 0683 0672 0661 0650 0640 O 889 0864 0840 086 0794 0772 0751 0731 0712 0693 0675 0658 064t 0624 0609 0593 O579 0564 0551 0537 0 524 0512 O855 O823 0792 0763 0735 0708 0683 0659 0636 0613 0.592 0572 0552 0534 056 0499 0482 0.467 0451 0437 0423 040 O822 0784 0747 0713 0681 0650 0621 0593 0567 0543 0519 0497 0476 0456 0437 0419 0402 0386 0370 0355 0341 0328 3 0790 0746 0705 0666 0630 0596 0564 0535 0507 0480 0456 0432 040 0390 0370 0352 0335 0319 0303 0289 0 275. 0262 0760 0711 0665 0623 0583 0547 0513 0482 0452 0425 0400 0376 0354 0333 0314 0296 0.279 0263 0249 0235 0222 0210 0731 0677 0627 0582 0540 0502 0467 0434 0404 0376 0351 0327 0305 0285 0266 0249 0233 0218 0204 0191 0179 0168 0703 0645 0592 0544 0500 0460 0424 0391 0361 0333 0308 0284 0263 0243 0225 0 209 0194 0180 0167 0155 0144 0134 10 0676 0614 0558 0508 0463 0422 0386 0352 0322 0295 0270 0247 0227 0208 0191 0176 0162 0149 037 0126 o16 0107 11 0650 0585 0527 0475 0429 0388 0350 0317 0287 0261 0 237 0215 0195 0178 O62 0148 0135 0123 0112 0103 0094 0086 12 0625 0557 0497 0444 0397 0356 0319 0286 0257 0231 0208 0187 O68 0152 a137 0124 0112 0102 0092 0083 0076 0069 13 0601 0530 0469 0415 0368 0326 0290 0258 0229 0204 0182 0163 045 0130 o16 0104 0093 0084 0075 0068 0061 0055 14 0577 0505 0442 0 388 0340 0299 0263 0232 0205 0181 0160 0141 0125 o11 0099 0 088 0078 0069 0062 0055 0049 0044 15 0555 0481 0417 0362 0315 0275 0239 0209 0183 0160 0140 0123 008 0095 0084 0074 0065 0057 0051 0045 O040 0035 16 0534 0458 0394 0339 0292 0252 0218 0188 063 0141 0123 0107 0093 0081 0071 0062 0054 0047 0042 0036 0032 0028 0513 0436 0371 0317 0270 0231 0198 0170 0146 0125 0108 0093 0080 0069 0060 0052 0045 0039 0034 0030 0026 0023 0.494 0416 0350 0296 0250 0212 0180 0153 030 om 17 18 0095 0081 0069 0059 0051 0044 0038 0032 0028 0024 0021 008 0 475 0396 0331 0277 0232 0194 0164 0138 o16 0098 0083 0070 0060 0051 0043 0037 0031 0027 0023 0020 0017 0014 0456 0377 0312 0258 0215 0178 0149 0124 0104 0087 0073 0061 005t 0043 0037 0031 0026 0022 009 006 0014 0012 19 20 21 0439 0359 0294 0242 0199 0164 0135 o12 0093 0077 0064 0053 0044 0037 0031 0026 0022 0018 005 003 0on 0009 22 0422 0342 0278 0226 0184 0150 0123 0101 0083 0068 0056 0046 0038 0032 0026 0022 008 0015 0013 0011 0009 0007 23 0406 0326 0262 0211 0170 0138 012 0091 0074 0.060 0049 0040 0033 0027 0022 0018 005 0012 0010 0009 0007 0006 24 0390 0310 0247 0197 0158 0126 0102 0082 0066 0053 0043 0035 0028 0023 009 0015 0013 000 0008 0007 0006 0005 25 0375 0295 0233 O184 0146 0116 0092 0074 0059 0047 0038 0030 0024 0020 006 003 0010 009 0007 0006 0005 0004 26 0.361 0281 0220 0172 0135 0306 0084 0066 0053 0042 0033 0026 0021 O07 004 0on 0009 007 006 0005 0004 0003 0347 0268 0207 061 0125 0098 0076 0060 0047 0037 0029 0023 0018 0014 0on 27 0009 0007 006 0005 0004 0003 0002 28 0333 0255 0196 0150 a16 000 0069 0054 0042 0033 0026 0020 00% 0012 000 0008 006 0005 0004 0003 0002 0002 29 0321 0243 0185 0141 0107 0082 0063 0048 0037 0029 0022 0o 004 0on 0008 0006 005 0004 0003 0002 0002 0002 30 0308 0231 0174 0131 0099 0075 0057 0044 0033 0026 0020 0015 0012 0009 0007 0005 004 0.003 0.003 0002 0002 0001 40 0208 0142 0097 0067 0046 0032 0022 0015 0on 0008 0005 004 0003 0002 0001 o001 0001 0000 0000 0000 O000 0000
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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