New Techno Corporation is a rapidly growing biotech company that has a required rate of return...

Transcribed Image Text:

New Techno Corporation is a rapidly growing biotech company that has a required rate of return of 12%. It plans to build a new facility in Santa Clara County. The building will take 2 years to complete. The building contractor offered New Techno a choice of three payment plans, as follows: (Click the icon to view the data) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Using the net present value method, calculate the comparative cost of each of the three payment plans being considered by New Techno. (Round your final answers to the nearest whole dollar.) The net present value cost of Plan I is More info Plan 1: Payment of $300,000 at the time of signing the contract and $4,750,000 upon completion of the building. The end of the second year is the completion date. Plan II: Payment of $1,625,000 at the time of signing the contract and $1,625,000 at the end of each of the two succeeding years. • Plan III: Payment of $350,000 at the time of signing the contract and $1,600,000 at the end of each of the three succeeding years. Print Done C X Requirements 1. Using the net present value method, calculate the comparative cost of each of the three payment plans being considered by New Techno. 2. Which payment plan should New Techno choose? Explain. 3. Discuss the financial factors, other than the cost of the plan, and the nonfinancial factors that should be considered in selecting an appropriate payment plan. Print - X Done Reference I Present Value of $1 Periods 2% 4% 6% 40% 0.329 Period 4 Period 7 Period 8 0403 0-100 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% Period 1 0.980 0.962 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 0.794 0.781 0.769 0.758 0.714 Period 2 0.961 0.925 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.672 0.650 0.630 0.610 0.592 0.574 0.510 Period 3 0.942 0.889 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.551 0.524 0.500 0.477 0.455 0.435 0.364 Period 4 0.924 0.855 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.451 0.423 0.397 0.373 0.350 0.260 Period 5 0.906 0.822 0.747 0.681 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.370 0.341 0.315 0.291 0.269 0.250 0.186 Period 5 Period 6 0.888 0.790 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.303 0.275 0.250 0.227 0.207 0.189 0.133 Period 6 Period 7 0.871 0.760 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.249 0.222 0.198 0.178 0.159 0.143 0.095 Period 8 0.853 0.731 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.204 0.179 0.157 0.139 0.123 0.108 0.068 Period 9 0.837 0.703 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.167 0.144 0.125 0.108 0.094 0.082 0.048 Period 9 Period 10 0.820 0.676 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.137 0.116 0.099 0.085 0.073 0.062 0.035 Period 10 Period 11 0.804 0.650 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.112 0.094 0.079 0.066 0.056 0.047 0.025 Period 11 0.900 Period 12 0.788 0.625 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.092 0.076 0.062 0.052 0.043 0.036 0.018 Period 12 Period 13 0.773 0.601 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.075 0.061 0.050 0.040 0.033 0.027 0.013 Period 13 Period 14 0.758 0.577 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.062 0.049 0.039 0.032 0.025 0.021 0.009 Period 14 0.400 0 140 Period 15 0.743 0.555 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.051 0.040 0.031 0.025 0.020 0.016 0.006 Period 15 0 123 0.218 0.123 0.093 0.071 0.054 0.042 0.032 0.025 0.019 0.015 0.012 0.005 Period 16 0-160 0.270 0.198 0.146 0.108 0.080 0.060 0.045 0.034 0.026 0.020 0.015 0.012 0.009 0.003 Period 17 Period 18 0.700 0.494 0.350 0.250 0.180 0.130 0.095 0.069 0.051 0.038 0.028 0.021 0.016 0.012 0.009 0.007 0.002 Period 18 Period 19 0.686 0.475 0.331 0.232 0.164 0.116 0.083 0.060 0.043 0.031 0.023 0.017 0.012 0.009 0.007 0.005 0.002 Period 19 Period 20 0.673 0.456 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.019 0.014 0.010 0.007 0.005 0.004 0.001 Period 20 Period 21 0.660 0.439 0.294 0.199 0.135 0.093 0.064 0.044 0.031 0.022 0.015 0.011 0.008 0.006 0.004 0.003 0.001 Period 21 Period 22 0.647 0.422 0.278 0.184 0.123 0.083 0.056 0.038 0.026 0.018 0.013 0.009 0.006 0.004 0.003 0.002 0.001 Period 22 Period 23 0.634 0.406 0.262 0.170 0.112 0.074 0.049 0.033 0.022 0.015 0.010 0.007 0.005 0 003 0.002 0.002 0.000 Period 23 Period 24 0.622 0.390 0.247 0.158 0.102 0.066 0.043 0.028 0.019 0.013 0.008 0.006 0.004 0.003 0.002 0.001 0.000 Period 24 Period 25 0.610 0.375 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.007 0.005 0.003 0.002 0.001 0.001 0.000 Period 25 Period 26 0.598 0.361 0.220 0.135 0.084 0.053 0.033 0.021 0.014 0.009 0.006 0.004 0.002 0.002 0.001 0.001 0.000 Period 26 Period 27 0.586 0.347 0.207 0.125 0.076 0.047 0.029 0.018 0.011 0.007 0.005 0.003 0.002 0.001 0.001 0.001 0.000 Period 27 Period 28 0.574 0.333 0.196 0.116 0.069 0.042 0.026 0.016 0.010 0.006 0.004 0.002 0.002 0.001 0.001 0.000 0.000 Period 28 0.321 0.185 0.107 0.063 0.037 0.022 0.014 0.008 0.005 0.003 0.002 0.001 0.001 0.000 0.000 0.000 Period 29 0.308 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.003 0.002 0.001 0.001 0.000 0.000 0.000 Period 30 Period 35 0.500 0.253 0.130 0.068 0.036 0.019 0.010 0.006 0.003 0.002 0.001 0.001 0.000 0.000 0.000 0.000 0.000 Period 35 Period 40 0.453 0.208 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Period 40 Period 16 0.728 0.534 0.394 0.292 0.163 0576 0.210 0-109 Period 17 0.714 0.513 0.371 0.003 Period 29 0.563 Period 30 0.552 Periods Period 1 Period 2 Period 3 Reference Present Value of Annuity of $1.00 in Arrears* 4% 12% Periods 2% 2% Period 1 0.980 0.962 6% 8% 10% 0.943 0.926 0.909 24% 26% 28% 0.806 0.794 0.781 0.769 1.457 1.424 1.392 1.361 1.981 1.923 1.868 1.816 30% 32% 40% 0.758 0.714 1.331 1.766 Period 2 1.942 1.224 1.589 14% 0.893 0.877 1.690 1.647 2.402 2.322 3.037 2.914 3.605 3.433 4.111 3.889 4.564 4.288 2.345 2.035 2.534 2.168 3.685 3.000 4.039 3.812 4.000 3.498 0.900 3.326 2.320 3.605 5.605 4.000 4.304 2.677 2.263 2:203 2.786 2.331 2.868 2.379 16% 18% 20% 22% 0.862 0.847 0.833 0.820 1.886 1.833 1.783 1.736 1.605 1.566 1528 1.492 Period 3 2.884 2.775 2.673 2.577 2.487 2.246 2.174 2.106 2.042 Period 4 3.808 3.630 3.465 3.312 3.170 2.798 2.690 2.589 2.494 2.404 2.320 2.241 2.166 2.096 1.849 Period 5 4.713 4.452 4.212 3.993 3.791 3.274 3.127 2.991 2.864 2.745 2.635 2.532 2.436 2.991 Period 6 5.601 5.242 4.917 4.623 4.355 3.167 3.020 2.885 2.759 2.643 4.029 Period 7 6.472 6.002 5.582 5.206 4.868 3.416 3.242 3.083 2.937 2.802 3.242 3.410 2.991 2.002 com Period 8 7.325 6.733 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 3.619 3.421 3.241 3.076 2.925 Period 9 8.162 7.435 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 3.786 3.566 3.366 3.184 3.019 Period 10 8.983 8.111 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 3.923 3.682 3.465 3.269 3.092 2.930 Period 11 9.787 8.760 7.887 7.139 7.159 6.495 5.938 5.453 5.029 1.001 4.656 4.327 4.035 3.776 3.543 3.335 3.147 2.978 Period 12 10.575 9.385 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 4.127 3.851 3.606 3.387 3.190 3.013 0.309 Period 13 11.348 9.986 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 4.203 3.912 3.656 3.427 3.223 3.040 Period 14 12.106 10.563 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 4.265 3.962 3.695 3.459 3.249 3.061 3.001 Period 15 12.849 11.118 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 4.315 4.001 3.726 3.483 3.268 3.076 Period 16 13.578 11.652 10.106 8.851 7.824 6.974 6.265 5.668 5.162 4.730 4.357 4.033 3.751 4.055 3.503 3.283 3.088 0.914 XX Period 17 14.292 12.166 10.477 9.122 8.022 7.120 6.373 5.749 5.222 4.775 4.391 4.059 3.771 3.518 3.295 3.097 Period 18 14.992 12.659 10.828 9.372 8.201 7.250 6.467 5.818 5.273 4.812 4.419 4.080 3.786 3.529 3.304 3.104 Period 19 15.678 13.134 11.158 9.604 8.365 7.366 7.366 6.550 5.877 5.316 4.843 4.442 4.097 3.799 3.539 3.311 3.109 Period 20 16.351 13.590 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 4 870 4.460 4.110 3.808 3.546 3.316 3.113 Period 21 17.011 14.029 11.764 10.017 8.649 7.562 6.687 5.973 5.384 4.891 4.476 4.121 3.816 3.551 3.320 3.116 Period 22 17.658 14.451 12.042 10.201 8.772 7.645 6.743 6.011 5.410 4.909 4.488 4.130 3.822 3.556 3.323 3.118 Period 23 18.292 14.857 12.303 10.371 8.883 7.718 6.792 6.044 5.432 4.925 4.499 4.137 3.827 3.559 3.325 3.120 6.072 OPA Period 24 18.914 15.247 12.550 10.529 8.985 7.784 6.835 6.073 5.451 4.937 4.507 4.143 3.831 3.562 3.327 3.121 7.843 073 200 E AGZ 1010 * 2.024 Period 25 19.523 15.622 12.783 10.675 9.077 7.843 6.873 6.097 5.467 2 122 4.948 4.514 4.147 3.834 3.564 3.329 200 0.019 0.097 2.400 F 4:914 4.147 3.00€ 3.122 Period 26 20.121 15.983 13.003 10.810 9.161 7.896 6.906 6.118 5.480 4.956 4.520 4.151 3.837 3.566 3.330 3.123 7.000 Period 27 20.707 16.330 13.211 10.935 9.237 7.943 6.935 6.136 5.492 4.964 4.524 4.154 3.839 3.567 3.331 3.123 Period 28 21.281 16.663 13.406 11.051 9.307 7.984 6.961 6.152 5.502 4.970 4.528 4.157 3.840 3.568 3.331 3.124 Period 29 21.844 16.984 13.591 11.158 9.370 8.022 6.983 6.166 5.510 4.975 4.531 4.159 3.841 3.569 3.332 3.124 Period 30 22.396 17.292 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 4.534 4.160 3.842 3.569 3.332 3.124 Period 35 24.999 18.665 14.498 11.655 9.644 8.176 7.070 6.215 5.539 4.992 4.541 4.164 3.845 3.571 3.333 3.125 Period 40 27.355 19.793 15.046 11.925 9779 8.244 7.105 6.233 5.548 4.997 4.544 4.166 3.846 3.571 3.333 3.125 * Payments (or receipts) at the end of each period. 3.122 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 re Period 7 Period 8 Period 9 2.414 Period 10 2.438 Period 11 2.456 Period 12 2.469 Period 13 2.478 Period 14 2.470 renodg 2.484 Period 15 2.404 renod 2.489 Period 16 2.492 Period 17 2.494 Period 18 2.496 Period 19 2.497 Period 20 2.498 Period 21 2.499 5100 2.499 2.498 Period 22 2.499 Period 23 100 Dorind Period 24 Dated 2 Period 25 2.499 renio 20 2.500 Period 26 2.500 Period 20 2.500 Period 27 enod 2.500 Period 28 2.500 Period 29 2.500 Period 30 2.500 Period 35 2.500 Period 40 Reference 14% 1.140 1.160 1.300 1.346 1.482 1.561 1811 1.689 1.811 6% 8% 10% 20% Compound Amount of $1.00 (The Future Value of $1.00) Periods 2% 4% Period 1 1.020 1.040 Period 2 1.040 1.082 1.080 1.100 1.200 1.060 1.124 1.166 12% 1.120 1.254 1.331 1.405 1.161 1.210 1.440 1.260 16% 18% 1.180 1.392 1.643 1.728 1.939 2.074 2.488 2.986 3.297 1 338 1.464 1.360 1.574 160 1611 1.611 1.762 1.925 2.100 2.288 4772 1.074 100 1.469 3.635 5012 2.211 2.502 2.826 3.185 3.583 4.023 4.508 5.042 Xor 3.278 200 3.759 4.300 4.908 6.353 3:199 3.803 4.435 5.160 5.987 8.005 9.223 12.166 5.234 6.192 7.305 10.086 11.806 16.060 1224 21.199 45 442 15.112 40 245 19.343 23.298 50.500 27.983 48.757 3.426 3.420 38.741 Period 3 1.061 1.125 1.191 Period 4 1.082 1.170 1.262 Period 5 1.104 1.217 Period 6 1.126 1.265 1.419 1.587 1.772 1.974 2.195 2.436 2.700 1010 Period 7 1.149 1.316 1.504 1.714 1.949 2007 1000 S Period 8 1.172 1.369 1.594 1.851 2.144 2.476 2.853 2.470 Period 9 1.195 1.423 1.689 1.999 2.358 2.773 3.252 3:000 Period 10 1.219 1.480 1.791 2.159 2.594 3.106 3.707 4.411 Period 11 1.243 1.539 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 8.912 10.657 12.708 2.000 2030 2000 Period 12 1.268 1.601 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 10.872 13.215 16.012 0-100 Period 13 1.294 1.665 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 13.264 16.386 20.175 24.759 30.288 36.937 Dorid 14 1 219 1722 10447 16 193 12.930 20 974 Period 14 1.319 1.732 2.261 2.937 3.797 4.887 6.261 21 691 7.988 12.839 10.147 16.182 20.319 25.421 31.691 39.374 2007 Period 15 1.346 1.801 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 19.742 25.196 32.030 40.565 51.186 64.359 3336 11 120 40 350 Period 16 1.373 1.873 2.540 4.595 6.130 8.137 18.488 10.748 14.129 24.086 31.243 51.923 40.358 66.542 84.954 24.000 2-340 31:243 Period 17 1.400 1.948 2.693 3.700 5.054 6.866 9.276 12.468 16.672 22.186 29.384 50.851 66.461 86.504 112.139 Period 18 1.428 2.026 2.854 3.996 5.560 7.690 10.575 14.463 19.673 26.623 35.849 48.039 64.072 85.071 2.054 112.455 148.024 20.020 40.000 2.107 3.026 4.316 6.116 8.613 12.056 16.777 23.214 31.948 43.736 59.568 80.731 108.890 146.192 195.391 0.020 57505 30 370 Period 20 1.486 2.191 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 53.358 73.864 101.721 139.380 190.050 257.916 Period 21 1.516 2.279 3.400 5.034 7.400 10.804 15.668 22.574 32.324 46.005 65.096 91.592 128.169 178.406 247.065 340.449 Period 22 1.546 2.370 3.604 5.437 8.140 12.100 17.861 26.186 38.142 55.206 79.418 113.574 161.492 228.360 321.184 449.393 Period 23 1.577 2.465 3.820 5.871 8.954 13.552 20.362 30.376 45.008 66.247 96.889 140.831 203.480 292.300 417.539 593.199 Period 24 1.608 2.563 4.049 6.341 9.850 15.179 23.212 35.236 53.109 79.497 118.205 174.631 256.385 374.144 542.801 783.023 Period 24 Period 25 1.641 2.666 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 144.210 216.542 323.045 478.905 705.641 1033.590 Period 25 Period 25 Period 26 1.673 2.772 4.549 7.396 11.918 19.040 30.167 47.414 73.949 114.475 175.936 268.512 407.037 612.998 917.333 1364 339 1364.339 6299.831 Period 26 Period 27 1.707 2.883 4.822 7.988 13.110 21.325 34.390 55.000 87.260 137.371 214.642 332.955 512.867 784.638 1192.533 1800.927 8819.764 Period 27 Period 28 1.741 2.999 5.112 8.627 14.421 23.884 39.204 63.800 102.967 164.845 261.864 412.864 646.212 1004.336 1550.293 2377.224 12347.670 Period 28 Period 29 1.776 3.119 5.418 9.317 15.863 26.750 44.693 74.009 121.501 197.814 319.474 511.952 814.228 1285.550 2015.381 3137.935 17286.737 Period 29 Period 30 1.811 3.243 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 389.758 634.820 1025.927 1645.505 2619.996 4142.075 24201.432 Period 30 Period 35 2.000 3.946 7.686 14.785 28.102 52.800 98.100 180.314 327.997 590.668 1053.402 1861.054 3258.135 5653.911 9727.860 16599.217 16599.217 130161.112 Period 35 Period 40 2.208 4.801 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1469.772 2847.038 5455.913 10347.175 19426.689 36118.865 66520.767 700037.697 Period 40 Period 19 1.457 Period 22 Period 23 22% 1.220 24% 26% 1.240 1.260 1.538 1.588 1.488 1816 1.816 1.907 2.215 2.364 2.703 2.932 5.590 9.990 6.931 8.594 2.000 2.520 2.520 2 176 3.176 1.002 4.002 28% 1.280 1.638 2.097 2.684 3.436 4.398 5.629 7.206 7.206 30% 1.300 1.690 2.197 2.856 3.713 4.827 6.275 6.275 0 457 8.157 9.191 10.604 13.786 17.922 32% 1.320 1.742 2.300 2.026 3.036 1.007 4.007 5.290 6.983 0.247 9.217 40% 1.400 1.960 2.744 3.842 6 378 5.378 7.630 7.530 10 641 10.541 wew 14.758 4.190 20.661 o par 28.925 40.496 EG 604 56.694 79.371 an 111.120 155.568 217.795 I 304.913 426.879 597.630 836.683 1171.356 1639.898 2295.857 3214.200 4499.880 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Daried 6 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Danied 16 Period 16 Lenog be Period 17 Period 18 Period 19 Period 20 Period 21 20 Reference Compound Amount of Annuity of $1.00 in Arrears* (Future Value of Annuity) 6% 12% 14% 16% 18% 20% 8% 10% 1.000 1.000 2.080 2.100 1.000 1.000 1.000 1.000 2.160 2.140 2.180 2.200 3 440 4.921 3.506 3.572 3.640 3.900 5.066 5.215 5.000 5.368 Period 6 28.657 47.062 20.00 35.962 41.002 63.122 33.202 44.874 50.895 09.122 84.320 04.320 22.974 55.746 2000 64.110 73.751 112.303 20-790 04.10 146.240 69.010 02:00 149.240 107.607 197.997 ara ar 104.000 212 472 Periods 2% 4% Period 1 1.000 1.000 1.000 1.000 Period 2 2.020 2.040 2.060 2.120 Period 3 3.060 3.122 3.184 3.246 3.310 3.374 Period 4 4.122 4.246 4.375 4.506 4.641 4.779 Period 5 5.204 5.416 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 028 6.308 6.633 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 Period 7 7.434 7.898 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 Period 8 8.583 9.214 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 Period 9 9.755 10.583 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 22.670 20.700 Period 10 10.950 12.006 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 Period 10 10.950 12.006 13.101 14.407 15.957 17.549 19:37 21321 23:521 25.999 Period 11 12.169 13.486 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12.109 15.406 14.972 16.649 10.551 20.055 22.040 20.799 20.199 32.150 Period 12 13.412 15.026 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 10 407 Period 13 14.680 16.627 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 50 106 03.030 Period 14 15.974 18.292 21.015 24.215 27.975 32.393 37.581 43.672 50.818 59.196 80.496 93.926 100 240 110 247 Period 15 17.293 20.024 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 85.192 100.815 119.347 07 442 101.926 436 044 Period 16 18.639 21.825 25.673 30.324 35.950 42.753 50.980 60.925 72.939 87.442 104.935 126.011 151.377 181.868 218.472 01:446 107.000 210.914 Period 17 20.012 23.698 28.213 33.750 40.545 48.884 59.118 71.673 87.068 105.931 129.020 157.253 191.735 233.791 285.014 347.309 Period 18 21.412 25.645 30.906 37.450 45.599 55.750 68.394 84.141 103.740 128.117 158.405 195.994 242.585 300.252 371.518 459.449 199.994 Period 19 22.841 27.671 33.760 41.446 51.159 63.440 78.969 98.603 123.414 154.740 194.254 244.033 306.658 385.323 483.973 607.412 607.472 1491.576 Period 20 24.297 29.778 36.786 45.762 57.275 72.052 91.025 115.380 146.628 186.688 237.989 303.601 387.389 494.213 630.165 802.863 2089.206 Period 21 25.783 31.969 39.993 50.423 64.002 81.699 104.768 134.841 174.021 225.026 291.347 377.465 489.110 633.593 820.215 1060.779 2925.889 Period 22 27.299 34.248 43.392 55.457 71.403 92.503 120.436 157.415 206.345 271.031 356.443 469.056 617.278 811.999 1067.280 1401.229 4097.245 Period 23 28.845 36.618 46.996 60.893 79.543 104.603 138.297 183.601 244.487 326.237 435.861 582.630 778.771 1040.358 1388.464 1850.622 5737.142 Period 24 30.422 39.083 50.816 66.765 88.497 118.155 158.659 213.978 289.494 392.484 532.750 723.461 982.251 1332.659 1806.003 2443.821 8032.999 OFF Period 25 32.030 41.646 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 650.955 898.092 1238.636 1706.803 2348.803 3226.844 11247.199 reno 20 32.090 41.040 34.009 19.100 30.341 193.334 101911 243.214 342.000 4 TOP FOR 000.00€ 1290.000 1700.000 2040.000 1560 424 Period 26 33.671 44.312 59.156 79.954 109.182 150.334 208.333 290.088 405.272 567.377 795.165 1114.634 1561.682 2185.708 3054.444 1561.662 4260.434 Period 20 33.67144.312 29.100 13.994 199.102 190.354 200-355 299.000 405.212 201.371 195.165 114.034 5700 700 3094.444 Period 27 35.344 47.084 63.706 87.351 121.100 169.374 238.499 337.502 479.221 681.853 Period 27 9.544 47.004 09.7 971.102 1383.146 1968.719 2798.706 3971.778 5624.772 97-102 05 220 121 310 100 600 579.000 9.221 001.088 1200-140 2009 200 991.10 5000 200 7857006 Period 28 37.051 49.968 68.528 95.339 134.210 190.699 272.889 392.503 566.481 819.223 1185.744 1716.101 2481.586 3583.344 5164.311 renou z0 7425.699 700 3 407 0090 2120 065 Period 29 38.792 52.966 73.640 103.966 148.631 214.583 312.094 456.303 669.447 984.068 1447.608 2128.965 3127.798 4587.680 6714.604 9802.923 Period 30 40.568 56.085 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1181.882 1767.081 2640.916 3942.026 5873.231 8729.985 12940.859 Period 35 49.994 73.652 111.435 172.317271.024 431.663 693.573 1120.7131816.652 2948.341 4783.645 7750.225 12527.442 20188.966 32422.868 51869.427 325400.279 Period 40 60.402 95.026 154.762259.057 442.593 767.091 1342.0252360.7574163.213 7343.858 12936.535 22728.803 39792.982 69377.460 120392.883 207874.272 1750091.741 * Payments (or receipts) at the end of each period. 262.356 247.000 Period 24 900 002 Period 25 15747.079 Period 26 22046.910 Period 27 30866.674 Period 28 43214.343 Period 29 60501.081 Period 30 Period 35 Period 40 22% 1.000 2.220 3.708 5.524 7740 7.740 10.442 13.740 19:140 17.762 24% 1.000 2.240 3.778 3.7719 5.684 8.048 in 10.980 14 646 14.615 A 19.123 24.712 24.712 31.643 31.043 40.238 40.200 26% 1.000 2.260 3.848 28% 1.000 2.280 3.918 5.848 0 200 8.368 6.016 0 700 8.700 12420 12.136 46524 11.544 15.546 20.588 22.163 16.534 10:994 26.940 29.369 34.945 34.945 45.031 45.051 57.739 38.593 20.990 30% 1.000 2.300 3.990 6.187 9.043 3,045 12.756 17.02 17.583 1:909 23.858 32.015 32.010 42.619 2012 56.405 20:302 74.327 17:25 97.625 50.398 20:20 65.510 09:00 84.853 104.000 109.612 495 467.906 141.303 167.286 427042 127.913 32% 1.000 2.320 4.062 6.362 9.398 3.390 13.406 10.400 18.696 10.090 25.678 34.895 34.095 40% 1.000 2.400 4.360 2.000 7.104 1309 10.946 16.324 20 23.853 20.000 34.395 34.395 49.153 2009 69.814 09.014 98.739 120 325 139.235 100 600 195.929 275.300 500 400 386.420 F44.000 541.988 759.784 159.764 1064.697 Periods Period 1 Period 2 Period 3 www Period 4 Period 5 Daried c Period 6 Daried 7 Period 7 Period 8 renod o Period 9 Show Period 10 renog to Period 11 12 13 Period 12 renoa Period renod to Period 14 enou je Period 15 Dorind 46 Period 16 Lege Period 17 reniod Period 18 Feniod to Period 19 Period 20 reno 20 Period 21 Period 22 Period 23 New Techno Corporation is a rapidly growing biotech company that has a required rate of return of 12%. It plans to build a new facility in Santa Clara County. The building will take 2 years to complete. The building contractor offered New Techno a choice of three payment plans, as follows: (Click the icon to view the data) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Using the net present value method, calculate the comparative cost of each of the three payment plans being considered by New Techno. (Round your final answers to the nearest whole dollar.) The net present value cost of Plan I is More info Plan 1: Payment of $300,000 at the time of signing the contract and $4,750,000 upon completion of the building. The end of the second year is the completion date. Plan II: Payment of $1,625,000 at the time of signing the contract and $1,625,000 at the end of each of the two succeeding years. • Plan III: Payment of $350,000 at the time of signing the contract and $1,600,000 at the end of each of the three succeeding years. Print Done C X Requirements 1. Using the net present value method, calculate the comparative cost of each of the three payment plans being considered by New Techno. 2. Which payment plan should New Techno choose? Explain. 3. Discuss the financial factors, other than the cost of the plan, and the nonfinancial factors that should be considered in selecting an appropriate payment plan. Print - X Done Reference I Present Value of $1 Periods 2% 4% 6% 40% 0.329 Period 4 Period 7 Period 8 0403 0-100 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% Period 1 0.980 0.962 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 0.794 0.781 0.769 0.758 0.714 Period 2 0.961 0.925 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.672 0.650 0.630 0.610 0.592 0.574 0.510 Period 3 0.942 0.889 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.551 0.524 0.500 0.477 0.455 0.435 0.364 Period 4 0.924 0.855 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.451 0.423 0.397 0.373 0.350 0.260 Period 5 0.906 0.822 0.747 0.681 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.370 0.341 0.315 0.291 0.269 0.250 0.186 Period 5 Period 6 0.888 0.790 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.303 0.275 0.250 0.227 0.207 0.189 0.133 Period 6 Period 7 0.871 0.760 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.249 0.222 0.198 0.178 0.159 0.143 0.095 Period 8 0.853 0.731 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.204 0.179 0.157 0.139 0.123 0.108 0.068 Period 9 0.837 0.703 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.167 0.144 0.125 0.108 0.094 0.082 0.048 Period 9 Period 10 0.820 0.676 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.137 0.116 0.099 0.085 0.073 0.062 0.035 Period 10 Period 11 0.804 0.650 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.112 0.094 0.079 0.066 0.056 0.047 0.025 Period 11 0.900 Period 12 0.788 0.625 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.092 0.076 0.062 0.052 0.043 0.036 0.018 Period 12 Period 13 0.773 0.601 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.075 0.061 0.050 0.040 0.033 0.027 0.013 Period 13 Period 14 0.758 0.577 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.062 0.049 0.039 0.032 0.025 0.021 0.009 Period 14 0.400 0 140 Period 15 0.743 0.555 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.051 0.040 0.031 0.025 0.020 0.016 0.006 Period 15 0 123 0.218 0.123 0.093 0.071 0.054 0.042 0.032 0.025 0.019 0.015 0.012 0.005 Period 16 0-160 0.270 0.198 0.146 0.108 0.080 0.060 0.045 0.034 0.026 0.020 0.015 0.012 0.009 0.003 Period 17 Period 18 0.700 0.494 0.350 0.250 0.180 0.130 0.095 0.069 0.051 0.038 0.028 0.021 0.016 0.012 0.009 0.007 0.002 Period 18 Period 19 0.686 0.475 0.331 0.232 0.164 0.116 0.083 0.060 0.043 0.031 0.023 0.017 0.012 0.009 0.007 0.005 0.002 Period 19 Period 20 0.673 0.456 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.019 0.014 0.010 0.007 0.005 0.004 0.001 Period 20 Period 21 0.660 0.439 0.294 0.199 0.135 0.093 0.064 0.044 0.031 0.022 0.015 0.011 0.008 0.006 0.004 0.003 0.001 Period 21 Period 22 0.647 0.422 0.278 0.184 0.123 0.083 0.056 0.038 0.026 0.018 0.013 0.009 0.006 0.004 0.003 0.002 0.001 Period 22 Period 23 0.634 0.406 0.262 0.170 0.112 0.074 0.049 0.033 0.022 0.015 0.010 0.007 0.005 0 003 0.002 0.002 0.000 Period 23 Period 24 0.622 0.390 0.247 0.158 0.102 0.066 0.043 0.028 0.019 0.013 0.008 0.006 0.004 0.003 0.002 0.001 0.000 Period 24 Period 25 0.610 0.375 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.007 0.005 0.003 0.002 0.001 0.001 0.000 Period 25 Period 26 0.598 0.361 0.220 0.135 0.084 0.053 0.033 0.021 0.014 0.009 0.006 0.004 0.002 0.002 0.001 0.001 0.000 Period 26 Period 27 0.586 0.347 0.207 0.125 0.076 0.047 0.029 0.018 0.011 0.007 0.005 0.003 0.002 0.001 0.001 0.001 0.000 Period 27 Period 28 0.574 0.333 0.196 0.116 0.069 0.042 0.026 0.016 0.010 0.006 0.004 0.002 0.002 0.001 0.001 0.000 0.000 Period 28 0.321 0.185 0.107 0.063 0.037 0.022 0.014 0.008 0.005 0.003 0.002 0.001 0.001 0.000 0.000 0.000 Period 29 0.308 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.003 0.002 0.001 0.001 0.000 0.000 0.000 Period 30 Period 35 0.500 0.253 0.130 0.068 0.036 0.019 0.010 0.006 0.003 0.002 0.001 0.001 0.000 0.000 0.000 0.000 0.000 Period 35 Period 40 0.453 0.208 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Period 40 Period 16 0.728 0.534 0.394 0.292 0.163 0576 0.210 0-109 Period 17 0.714 0.513 0.371 0.003 Period 29 0.563 Period 30 0.552 Periods Period 1 Period 2 Period 3 Reference Present Value of Annuity of $1.00 in Arrears* 4% 12% Periods 2% 2% Period 1 0.980 0.962 6% 8% 10% 0.943 0.926 0.909 24% 26% 28% 0.806 0.794 0.781 0.769 1.457 1.424 1.392 1.361 1.981 1.923 1.868 1.816 30% 32% 40% 0.758 0.714 1.331 1.766 Period 2 1.942 1.224 1.589 14% 0.893 0.877 1.690 1.647 2.402 2.322 3.037 2.914 3.605 3.433 4.111 3.889 4.564 4.288 2.345 2.035 2.534 2.168 3.685 3.000 4.039 3.812 4.000 3.498 0.900 3.326 2.320 3.605 5.605 4.000 4.304 2.677 2.263 2:203 2.786 2.331 2.868 2.379 16% 18% 20% 22% 0.862 0.847 0.833 0.820 1.886 1.833 1.783 1.736 1.605 1.566 1528 1.492 Period 3 2.884 2.775 2.673 2.577 2.487 2.246 2.174 2.106 2.042 Period 4 3.808 3.630 3.465 3.312 3.170 2.798 2.690 2.589 2.494 2.404 2.320 2.241 2.166 2.096 1.849 Period 5 4.713 4.452 4.212 3.993 3.791 3.274 3.127 2.991 2.864 2.745 2.635 2.532 2.436 2.991 Period 6 5.601 5.242 4.917 4.623 4.355 3.167 3.020 2.885 2.759 2.643 4.029 Period 7 6.472 6.002 5.582 5.206 4.868 3.416 3.242 3.083 2.937 2.802 3.242 3.410 2.991 2.002 com Period 8 7.325 6.733 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 3.619 3.421 3.241 3.076 2.925 Period 9 8.162 7.435 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 3.786 3.566 3.366 3.184 3.019 Period 10 8.983 8.111 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 3.923 3.682 3.465 3.269 3.092 2.930 Period 11 9.787 8.760 7.887 7.139 7.159 6.495 5.938 5.453 5.029 1.001 4.656 4.327 4.035 3.776 3.543 3.335 3.147 2.978 Period 12 10.575 9.385 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 4.127 3.851 3.606 3.387 3.190 3.013 0.309 Period 13 11.348 9.986 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 4.203 3.912 3.656 3.427 3.223 3.040 Period 14 12.106 10.563 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 4.265 3.962 3.695 3.459 3.249 3.061 3.001 Period 15 12.849 11.118 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 4.315 4.001 3.726 3.483 3.268 3.076 Period 16 13.578 11.652 10.106 8.851 7.824 6.974 6.265 5.668 5.162 4.730 4.357 4.033 3.751 4.055 3.503 3.283 3.088 0.914 XX Period 17 14.292 12.166 10.477 9.122 8.022 7.120 6.373 5.749 5.222 4.775 4.391 4.059 3.771 3.518 3.295 3.097 Period 18 14.992 12.659 10.828 9.372 8.201 7.250 6.467 5.818 5.273 4.812 4.419 4.080 3.786 3.529 3.304 3.104 Period 19 15.678 13.134 11.158 9.604 8.365 7.366 7.366 6.550 5.877 5.316 4.843 4.442 4.097 3.799 3.539 3.311 3.109 Period 20 16.351 13.590 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 4 870 4.460 4.110 3.808 3.546 3.316 3.113 Period 21 17.011 14.029 11.764 10.017 8.649 7.562 6.687 5.973 5.384 4.891 4.476 4.121 3.816 3.551 3.320 3.116 Period 22 17.658 14.451 12.042 10.201 8.772 7.645 6.743 6.011 5.410 4.909 4.488 4.130 3.822 3.556 3.323 3.118 Period 23 18.292 14.857 12.303 10.371 8.883 7.718 6.792 6.044 5.432 4.925 4.499 4.137 3.827 3.559 3.325 3.120 6.072 OPA Period 24 18.914 15.247 12.550 10.529 8.985 7.784 6.835 6.073 5.451 4.937 4.507 4.143 3.831 3.562 3.327 3.121 7.843 073 200 E AGZ 1010 * 2.024 Period 25 19.523 15.622 12.783 10.675 9.077 7.843 6.873 6.097 5.467 2 122 4.948 4.514 4.147 3.834 3.564 3.329 200 0.019 0.097 2.400 F 4:914 4.147 3.00€ 3.122 Period 26 20.121 15.983 13.003 10.810 9.161 7.896 6.906 6.118 5.480 4.956 4.520 4.151 3.837 3.566 3.330 3.123 7.000 Period 27 20.707 16.330 13.211 10.935 9.237 7.943 6.935 6.136 5.492 4.964 4.524 4.154 3.839 3.567 3.331 3.123 Period 28 21.281 16.663 13.406 11.051 9.307 7.984 6.961 6.152 5.502 4.970 4.528 4.157 3.840 3.568 3.331 3.124 Period 29 21.844 16.984 13.591 11.158 9.370 8.022 6.983 6.166 5.510 4.975 4.531 4.159 3.841 3.569 3.332 3.124 Period 30 22.396 17.292 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 4.534 4.160 3.842 3.569 3.332 3.124 Period 35 24.999 18.665 14.498 11.655 9.644 8.176 7.070 6.215 5.539 4.992 4.541 4.164 3.845 3.571 3.333 3.125 Period 40 27.355 19.793 15.046 11.925 9779 8.244 7.105 6.233 5.548 4.997 4.544 4.166 3.846 3.571 3.333 3.125 * Payments (or receipts) at the end of each period. 3.122 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 re Period 7 Period 8 Period 9 2.414 Period 10 2.438 Period 11 2.456 Period 12 2.469 Period 13 2.478 Period 14 2.470 renodg 2.484 Period 15 2.404 renod 2.489 Period 16 2.492 Period 17 2.494 Period 18 2.496 Period 19 2.497 Period 20 2.498 Period 21 2.499 5100 2.499 2.498 Period 22 2.499 Period 23 100 Dorind Period 24 Dated 2 Period 25 2.499 renio 20 2.500 Period 26 2.500 Period 20 2.500 Period 27 enod 2.500 Period 28 2.500 Period 29 2.500 Period 30 2.500 Period 35 2.500 Period 40 Reference 14% 1.140 1.160 1.300 1.346 1.482 1.561 1811 1.689 1.811 6% 8% 10% 20% Compound Amount of $1.00 (The Future Value of $1.00) Periods 2% 4% Period 1 1.020 1.040 Period 2 1.040 1.082 1.080 1.100 1.200 1.060 1.124 1.166 12% 1.120 1.254 1.331 1.405 1.161 1.210 1.440 1.260 16% 18% 1.180 1.392 1.643 1.728 1.939 2.074 2.488 2.986 3.297 1 338 1.464 1.360 1.574 160 1611 1.611 1.762 1.925 2.100 2.288 4772 1.074 100 1.469 3.635 5012 2.211 2.502 2.826 3.185 3.583 4.023 4.508 5.042 Xor 3.278 200 3.759 4.300 4.908 6.353 3:199 3.803 4.435 5.160 5.987 8.005 9.223 12.166 5.234 6.192 7.305 10.086 11.806 16.060 1224 21.199 45 442 15.112 40 245 19.343 23.298 50.500 27.983 48.757 3.426 3.420 38.741 Period 3 1.061 1.125 1.191 Period 4 1.082 1.170 1.262 Period 5 1.104 1.217 Period 6 1.126 1.265 1.419 1.587 1.772 1.974 2.195 2.436 2.700 1010 Period 7 1.149 1.316 1.504 1.714 1.949 2007 1000 S Period 8 1.172 1.369 1.594 1.851 2.144 2.476 2.853 2.470 Period 9 1.195 1.423 1.689 1.999 2.358 2.773 3.252 3:000 Period 10 1.219 1.480 1.791 2.159 2.594 3.106 3.707 4.411 Period 11 1.243 1.539 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 8.912 10.657 12.708 2.000 2030 2000 Period 12 1.268 1.601 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 10.872 13.215 16.012 0-100 Period 13 1.294 1.665 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 13.264 16.386 20.175 24.759 30.288 36.937 Dorid 14 1 219 1722 10447 16 193 12.930 20 974 Period 14 1.319 1.732 2.261 2.937 3.797 4.887 6.261 21 691 7.988 12.839 10.147 16.182 20.319 25.421 31.691 39.374 2007 Period 15 1.346 1.801 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 19.742 25.196 32.030 40.565 51.186 64.359 3336 11 120 40 350 Period 16 1.373 1.873 2.540 4.595 6.130 8.137 18.488 10.748 14.129 24.086 31.243 51.923 40.358 66.542 84.954 24.000 2-340 31:243 Period 17 1.400 1.948 2.693 3.700 5.054 6.866 9.276 12.468 16.672 22.186 29.384 50.851 66.461 86.504 112.139 Period 18 1.428 2.026 2.854 3.996 5.560 7.690 10.575 14.463 19.673 26.623 35.849 48.039 64.072 85.071 2.054 112.455 148.024 20.020 40.000 2.107 3.026 4.316 6.116 8.613 12.056 16.777 23.214 31.948 43.736 59.568 80.731 108.890 146.192 195.391 0.020 57505 30 370 Period 20 1.486 2.191 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 53.358 73.864 101.721 139.380 190.050 257.916 Period 21 1.516 2.279 3.400 5.034 7.400 10.804 15.668 22.574 32.324 46.005 65.096 91.592 128.169 178.406 247.065 340.449 Period 22 1.546 2.370 3.604 5.437 8.140 12.100 17.861 26.186 38.142 55.206 79.418 113.574 161.492 228.360 321.184 449.393 Period 23 1.577 2.465 3.820 5.871 8.954 13.552 20.362 30.376 45.008 66.247 96.889 140.831 203.480 292.300 417.539 593.199 Period 24 1.608 2.563 4.049 6.341 9.850 15.179 23.212 35.236 53.109 79.497 118.205 174.631 256.385 374.144 542.801 783.023 Period 24 Period 25 1.641 2.666 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 144.210 216.542 323.045 478.905 705.641 1033.590 Period 25 Period 25 Period 26 1.673 2.772 4.549 7.396 11.918 19.040 30.167 47.414 73.949 114.475 175.936 268.512 407.037 612.998 917.333 1364 339 1364.339 6299.831 Period 26 Period 27 1.707 2.883 4.822 7.988 13.110 21.325 34.390 55.000 87.260 137.371 214.642 332.955 512.867 784.638 1192.533 1800.927 8819.764 Period 27 Period 28 1.741 2.999 5.112 8.627 14.421 23.884 39.204 63.800 102.967 164.845 261.864 412.864 646.212 1004.336 1550.293 2377.224 12347.670 Period 28 Period 29 1.776 3.119 5.418 9.317 15.863 26.750 44.693 74.009 121.501 197.814 319.474 511.952 814.228 1285.550 2015.381 3137.935 17286.737 Period 29 Period 30 1.811 3.243 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 389.758 634.820 1025.927 1645.505 2619.996 4142.075 24201.432 Period 30 Period 35 2.000 3.946 7.686 14.785 28.102 52.800 98.100 180.314 327.997 590.668 1053.402 1861.054 3258.135 5653.911 9727.860 16599.217 16599.217 130161.112 Period 35 Period 40 2.208 4.801 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1469.772 2847.038 5455.913 10347.175 19426.689 36118.865 66520.767 700037.697 Period 40 Period 19 1.457 Period 22 Period 23 22% 1.220 24% 26% 1.240 1.260 1.538 1.588 1.488 1816 1.816 1.907 2.215 2.364 2.703 2.932 5.590 9.990 6.931 8.594 2.000 2.520 2.520 2 176 3.176 1.002 4.002 28% 1.280 1.638 2.097 2.684 3.436 4.398 5.629 7.206 7.206 30% 1.300 1.690 2.197 2.856 3.713 4.827 6.275 6.275 0 457 8.157 9.191 10.604 13.786 17.922 32% 1.320 1.742 2.300 2.026 3.036 1.007 4.007 5.290 6.983 0.247 9.217 40% 1.400 1.960 2.744 3.842 6 378 5.378 7.630 7.530 10 641 10.541 wew 14.758 4.190 20.661 o par 28.925 40.496 EG 604 56.694 79.371 an 111.120 155.568 217.795 I 304.913 426.879 597.630 836.683 1171.356 1639.898 2295.857 3214.200 4499.880 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Daried 6 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Danied 16 Period 16 Lenog be Period 17 Period 18 Period 19 Period 20 Period 21 20 Reference Compound Amount of Annuity of $1.00 in Arrears* (Future Value of Annuity) 6% 12% 14% 16% 18% 20% 8% 10% 1.000 1.000 2.080 2.100 1.000 1.000 1.000 1.000 2.160 2.140 2.180 2.200 3 440 4.921 3.506 3.572 3.640 3.900 5.066 5.215 5.000 5.368 Period 6 28.657 47.062 20.00 35.962 41.002 63.122 33.202 44.874 50.895 09.122 84.320 04.320 22.974 55.746 2000 64.110 73.751 112.303 20-790 04.10 146.240 69.010 02:00 149.240 107.607 197.997 ara ar 104.000 212 472 Periods 2% 4% Period 1 1.000 1.000 1.000 1.000 Period 2 2.020 2.040 2.060 2.120 Period 3 3.060 3.122 3.184 3.246 3.310 3.374 Period 4 4.122 4.246 4.375 4.506 4.641 4.779 Period 5 5.204 5.416 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 028 6.308 6.633 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 Period 7 7.434 7.898 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 Period 8 8.583 9.214 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 Period 9 9.755 10.583 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 22.670 20.700 Period 10 10.950 12.006 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 Period 10 10.950 12.006 13.101 14.407 15.957 17.549 19:37 21321 23:521 25.999 Period 11 12.169 13.486 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12.109 15.406 14.972 16.649 10.551 20.055 22.040 20.799 20.199 32.150 Period 12 13.412 15.026 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 10 407 Period 13 14.680 16.627 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 50 106 03.030 Period 14 15.974 18.292 21.015 24.215 27.975 32.393 37.581 43.672 50.818 59.196 80.496 93.926 100 240 110 247 Period 15 17.293 20.024 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 85.192 100.815 119.347 07 442 101.926 436 044 Period 16 18.639 21.825 25.673 30.324 35.950 42.753 50.980 60.925 72.939 87.442 104.935 126.011 151.377 181.868 218.472 01:446 107.000 210.914 Period 17 20.012 23.698 28.213 33.750 40.545 48.884 59.118 71.673 87.068 105.931 129.020 157.253 191.735 233.791 285.014 347.309 Period 18 21.412 25.645 30.906 37.450 45.599 55.750 68.394 84.141 103.740 128.117 158.405 195.994 242.585 300.252 371.518 459.449 199.994 Period 19 22.841 27.671 33.760 41.446 51.159 63.440 78.969 98.603 123.414 154.740 194.254 244.033 306.658 385.323 483.973 607.412 607.472 1491.576 Period 20 24.297 29.778 36.786 45.762 57.275 72.052 91.025 115.380 146.628 186.688 237.989 303.601 387.389 494.213 630.165 802.863 2089.206 Period 21 25.783 31.969 39.993 50.423 64.002 81.699 104.768 134.841 174.021 225.026 291.347 377.465 489.110 633.593 820.215 1060.779 2925.889 Period 22 27.299 34.248 43.392 55.457 71.403 92.503 120.436 157.415 206.345 271.031 356.443 469.056 617.278 811.999 1067.280 1401.229 4097.245 Period 23 28.845 36.618 46.996 60.893 79.543 104.603 138.297 183.601 244.487 326.237 435.861 582.630 778.771 1040.358 1388.464 1850.622 5737.142 Period 24 30.422 39.083 50.816 66.765 88.497 118.155 158.659 213.978 289.494 392.484 532.750 723.461 982.251 1332.659 1806.003 2443.821 8032.999 OFF Period 25 32.030 41.646 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 650.955 898.092 1238.636 1706.803 2348.803 3226.844 11247.199 reno 20 32.090 41.040 34.009 19.100 30.341 193.334 101911 243.214 342.000 4 TOP FOR 000.00€ 1290.000 1700.000 2040.000 1560 424 Period 26 33.671 44.312 59.156 79.954 109.182 150.334 208.333 290.088 405.272 567.377 795.165 1114.634 1561.682 2185.708 3054.444 1561.662 4260.434 Period 20 33.67144.312 29.100 13.994 199.102 190.354 200-355 299.000 405.212 201.371 195.165 114.034 5700 700 3094.444 Period 27 35.344 47.084 63.706 87.351 121.100 169.374 238.499 337.502 479.221 681.853 Period 27 9.544 47.004 09.7 971.102 1383.146 1968.719 2798.706 3971.778 5624.772 97-102 05 220 121 310 100 600 579.000 9.221 001.088 1200-140 2009 200 991.10 5000 200 7857006 Period 28 37.051 49.968 68.528 95.339 134.210 190.699 272.889 392.503 566.481 819.223 1185.744 1716.101 2481.586 3583.344 5164.311 renou z0 7425.699 700 3 407 0090 2120 065 Period 29 38.792 52.966 73.640 103.966 148.631 214.583 312.094 456.303 669.447 984.068 1447.608 2128.965 3127.798 4587.680 6714.604 9802.923 Period 30 40.568 56.085 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1181.882 1767.081 2640.916 3942.026 5873.231 8729.985 12940.859 Period 35 49.994 73.652 111.435 172.317271.024 431.663 693.573 1120.7131816.652 2948.341 4783.645 7750.225 12527.442 20188.966 32422.868 51869.427 325400.279 Period 40 60.402 95.026 154.762259.057 442.593 767.091 1342.0252360.7574163.213 7343.858 12936.535 22728.803 39792.982 69377.460 120392.883 207874.272 1750091.741 * Payments (or receipts) at the end of each period. 262.356 247.000 Period 24 900 002 Period 25 15747.079 Period 26 22046.910 Period 27 30866.674 Period 28 43214.343 Period 29 60501.081 Period 30 Period 35 Period 40 22% 1.000 2.220 3.708 5.524 7740 7.740 10.442 13.740 19:140 17.762 24% 1.000 2.240 3.778 3.7719 5.684 8.048 in 10.980 14 646 14.615 A 19.123 24.712 24.712 31.643 31.043 40.238 40.200 26% 1.000 2.260 3.848 28% 1.000 2.280 3.918 5.848 0 200 8.368 6.016 0 700 8.700 12420 12.136 46524 11.544 15.546 20.588 22.163 16.534 10:994 26.940 29.369 34.945 34.945 45.031 45.051 57.739 38.593 20.990 30% 1.000 2.300 3.990 6.187 9.043 3,045 12.756 17.02 17.583 1:909 23.858 32.015 32.010 42.619 2012 56.405 20:302 74.327 17:25 97.625 50.398 20:20 65.510 09:00 84.853 104.000 109.612 495 467.906 141.303 167.286 427042 127.913 32% 1.000 2.320 4.062 6.362 9.398 3.390 13.406 10.400 18.696 10.090 25.678 34.895 34.095 40% 1.000 2.400 4.360 2.000 7.104 1309 10.946 16.324 20 23.853 20.000 34.395 34.395 49.153 2009 69.814 09.014 98.739 120 325 139.235 100 600 195.929 275.300 500 400 386.420 F44.000 541.988 759.784 159.764 1064.697 Periods Period 1 Period 2 Period 3 www Period 4 Period 5 Daried c Period 6 Daried 7 Period 7 Period 8 renod o Period 9 Show Period 10 renog to Period 11 12 13 Period 12 renoa Period renod to Period 14 enou je Period 15 Dorind 46 Period 16 Lege Period 17 reniod Period 18 Feniod to Period 19 Period 20 reno 20 Period 21 Period 22 Period 23

Answer rating: 100% (QA)

1 Calculation of NPV is given below Plan 1 Year 0 300000 1 300000 Year 2 4750000 0797 3... View the full answer