XYZ has the option to invest $450,000. The investment will pay $100,000 each year for six...

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XYZ has the option to invest $450,000. The investment will pay $100,000 each year for six years with a ten percent interest. At the end of six years XYZ will receive $20,000 residual value. Should XYZ invest? Rate Table For the Present Value of an Ordinary Annuity of 1 1% 2% 3% 4% 5% 6% 8% 10% 12% 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9259 0.9091 0.8929 2 1.9704 1.9416 1.9135 1.8861 1.8594 1.8334 1.7833 1.7355 1.6906 3 2.9410 2.8839 2.8286 2.7751 2.7233 2.6730 2.5771 2.4869 2.4018 4 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3121 3.1699 3.0374 5 4.8534 4.7135 4.5797 4.4518 4.3295 4.2124 3.9927 3.7908 3.6048 6 5.7955 5.6014 5.4172 5.2421 5.0757 4.9173 4.6229 4.3553 4.1114 7 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.2064 4.8684 4.5638 8 00 7.6517 7.3255 7.0197 6.7327 6.4632 6.2098 5.7466 5.3349 4.9676 Present Value of 1 Table n 1% 2% 3% 4% 5% 6% 8% 10% 12% 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9259 0.9091 0.8929 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8573 0.8265 0.7972 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.7938 0.7513 0.7118 4 0.9610 0.9239 0.8885 0.8548 0.8227 0.7921 0.7350 0.6830 0.6355 5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.6806 0.6209 0.5674 6 0.9421 0.8880 0.8375 0.7903 0.7462 0.7050 0.6302 0.5645 0.5066 7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.5835 0.5132 0.4524 8 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.5403 0.4665 0.4039 Yes, It will gain 3,180 Yes, It will gain 2,760 No, It will lose 2,760 ' XYZ has the option to invest $450,000. The investment will pay $100,000 each year for six years with a ten percent interest. At the end of six years XYZ will receive $20,000 residual value. Should XYZ invest? Rate Table For the Present Value of an Ordinary Annuity of 1 1% 2% 3% 4% 5% 6% 8% 10% 12% 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9259 0.9091 0.8929 2 1.9704 1.9416 1.9135 1.8861 1.8594 1.8334 1.7833 1.7355 1.6906 3 2.9410 2.8839 2.8286 2.7751 2.7233 2.6730 2.5771 2.4869 2.4018 4 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3121 3.1699 3.0374 5 4.8534 4.7135 4.5797 4.4518 4.3295 4.2124 3.9927 3.7908 3.6048 6 5.7955 5.6014 5.4172 5.2421 5.0757 4.9173 4.6229 4.3553 4.1114 7 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.2064 4.8684 4.5638 8 00 7.6517 7.3255 7.0197 6.7327 6.4632 6.2098 5.7466 5.3349 4.9676 Present Value of 1 Table n 1% 2% 3% 4% 5% 6% 8% 10% 12% 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9259 0.9091 0.8929 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8573 0.8265 0.7972 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.7938 0.7513 0.7118 4 0.9610 0.9239 0.8885 0.8548 0.8227 0.7921 0.7350 0.6830 0.6355 5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.6806 0.6209 0.5674 6 0.9421 0.8880 0.8375 0.7903 0.7462 0.7050 0.6302 0.5645 0.5066 7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.5835 0.5132 0.4524 8 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.5403 0.4665 0.4039 Yes, It will gain 3,180 Yes, It will gain 2,760 No, It will lose 2,760 '