2. City Hospital, a taxpaying entity, estimates that it can save $28,000 a year in cash operating costs for the next 10 years if it buys a special-purpose eye-testing machine at a cost of $110,000. No terminal disposal value is expected. City Hospital's required rate of return is 14%. Assume all cash flows occur at year-end except for initial investment amounts. City Hospital uses straight-line depreciation. The income tax rate is 30% for all transactions that affect income taxes.

7(Click the icon to view the Future Value of $1 factors.) 8(Click the icon to view the Future Value of Annuity of $1 factors.).

9(Click the icon to view the Present Value of $1 factors.) 10(Click the icon to view the Present Value of Annuity of $1 factors.).

Read the requirement 11.

Requirement 1. Calculate the following for the special-purpose eye-testing machine:

a. Net present value (NPR) (Round interim calculations and your final answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.)

The net present value is $. b. Payback period (Round your answer to two decimal places.)

The payback period is years.

Requirement 2. How would your computations in requirement 1 be affected if the special-purpose machine had a $10,000 terminal disposal value at the end of 10 years? Assume depreciation deductions are based on the $110,000 purchase cost and zero terminal disposal value using the straight-line method. Answer briefly in words without further calculations.

NPV would (1) because the disposal value (2)

Payback would (3) because the disposal value (4)

Compound amount of $1.00 (The future value of $1.00)

S = P (1+r) ⁿ . in this table p = $1.00

Compound Amount of Annuity of $1.00 in Arrears *(Future Value of Annuity)

S _n = (1+r) ⁿ ? 1 / r

Present value of Annuity $1.00 in Arrears* P _n =1/r[1 ? 1(1 + r) ⁿ ]

Pretend value of $1.00

P = S / (1 + r) ⁿ in this table s = $1.00.

Transcribed Image Text:

4% 6% 8% 10% 12% 14% 16% 18% 1.020 1.040 1.060 1.080 1.100 1.120 1.160 1.180 1.200 1.2E 1.040 1.166 1.210 1.254 1.63 1.082 1.124 1.061 1.125 1.191 1.260 1.331 1.405 1.082 1.170 1.262 1.360 1.464 1.574 1.140 1.300 1.346 1.392 1.440 1.488 1.482 1.561 1.643 1.728 1.816 1.689 1.811 1.939 2.074 2.215 1.925 2.100 2.288 2.488 2.703 1.538 1.588 1.907 2.000 2.05 2.364 2.520 2.6E 5 2.932 3.43 1.469 1.611 1.762 1.772 6 1.126 1.265 1.419 1.587 4.35 7 1.149 1.316 1.504 1.714 2.195 2.436 2.700 2.986 3.297 3.635 2.502 2.826 3.185 3.583 4.023 2.853 3.278 3.759 4.300 4.908 4.508 5.042 5.590 6.353 5.987 6.931 8.005 1.974 1.949 2.211 8 1.172 1.369 1.594 1.851 2.144 2.476 9 1.195 1.423 1.689 1.999 2.358 2.773 1.219 1.480 1.791 2.159 2.594 3.106 1.243 1.539 1.898 2.332 2.853 3.479 12 1.268 1.601 2.012 2.518 3.138 3.896 13 1.294 1.665 10 8.594 10.086 3.252 3.803 4.435 3.707 4.411 5.234 4.226 5.117 6.176 4.818 5.160 6.192 7.305 7.430 8.916 10.872 13.215 11 8.912 10.657 12.708 16.012 5.936 7.288 6.886 8.599 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22% 24% 26% 1.220 1.240 1.260 3.176 4.002 28% 5.62 7.20 9.22 11.80 15.11 19.34 24.75 25.421 31.65 4% 6% 8% 10% 24% 28% 1.000 1.000 1.00 1.000 1.000 2.020 2.040 2.260 2.28 3.848 3.91: 5.848 31.643 34.945 40.238 45.031 13.412 15.026 50.895 57.739 42.219 48.497 64.110 73.751 109.61 14% 16% 18% 20% 22% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 2.220 2.240 3.060 3.122 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 3.708 3.778 4.122 4.246 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.524 5.684 5.204 5.416 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 7.740 8.048 8.368 6.308 6.633 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 10.442 10.980 11.544 7.434 7.898 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 13.740 14.615 15.546 8.583 9.214 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 17.762 19.123 20.588 9.755 10.583 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 22.670 24.712 26.940 10.950 12.006 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 28.657 12.169 13.486 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 35.962 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 44.874 14.680 16.627 18.882 21.495 24.523 28.029 32.089 36.786 55.746 15.974 18.292 21.015 24.215 27.975 32.393 37.581 43.672 50.818 59.196 69.010 80.496 93.926 17.293 20.024 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 85.192 100.815 119.347 141.30 18.639 21.825 25.673 30.324 35.950 42.753 50.980 60.925 72.939 87.442 104.935 126.011 151.377 181.86 20.012 23.698 28.213 33.750 40.545 48.884 59.118 71.673 87.068 105.931 129.020 157.253 191.735 233.79 37.450 45.599 55.750 68.394 84.141 103.740 128.117 158.405 195.994 242.585 300.25 41.446 51.159 63.440 78.969 98.603 123.414 154.740 194.254 244.033 306.658 385.32 57.275 72.052 91.025 115.380 146.628 186.688 237.989 303.601 387.389 494.21 64.002 81.699 104.768 134.841 174.021 225.026 291.347 377.465 489.110 633.59 71.403 92.503 120.436 157.415 206.345 271.031 356.443 469.056 617.278 811.99 46.996 60.893 79.543 104.603 138.297 183.601 244.487 326.237 435.861 582.630 778.771 1040.35 50.816 66.765 88.497 118.155 158.659 213.978 289.494 392.484 532.750 723.461 982.251 1332.65 41.646 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 650.955 44.312 59.156 79.954 109.182 150.334 208.333 290.088 405.272 567.377 795.165 47.084 63.706 87.351 121.100 169.374 238.499 337.502 479.221 681.853 971.102 49.968 68.528 95.339 134.210 190.699 272.889 392.503 566.481 819.223 1185.744 1716.101 2481.586 3583.34 52.966 73.640 103.966 148.631 214.583 312.094 456.303 669.447 984.068 1447.608 2128.965 3127.798 4587.68 56.085 79.058 113.263 164.494 241.333 356.787 530.312 790.948 1181.882 1767.081 2640.916 3942.026 5873.23 73.652 111.435 172.317 271.024 431.663 693.573 1120.713 1816.652 2948.341 4783.645 7750.225 12527.442 20188.96 40 60.402 95.026 154.762 259.057 442.593 767.091 1342.025 2360.757 4163.213 7343.858 12936.535 22728.803 39792.982 69377.48 21.412 25.645 30.9 22.841 27.671 33.760 36.786 45.762 39.993 50.423 24.297 29.778 25.783 31.969 27.299 34.248 36.618 39.083 43.392 55.457 28.845 30.422 32.030 898.092 1238.636 1706.80 26 33.671 1114.634 1561.682 2185.70 1383.146 1968.719 2798.70 35.344 40.568 35 49.994 Periods 2% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 20022PINESERRRRE 18 19 21 23 24 25 27 28 29 30 37.051 38.792 6.01 8.70 12.13 16.53 22.16 29.38 38.59 50.39 65.51 84.85 6% 10% 12% 14% 16% 18% 20% 24% 4% 0.962 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 1.492 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 2.042 3.170 3.037 2.914 2.798 2.690 2.589 2.494 3.791 3.433 3.274 3.127 2.991 2.864 4.623 4.355 4.111 3.889 3.808 3.630 3.465 3.312 4.713 4.452 4.212 3.993 3.605 5.601 5.242 4.917 3.685 3.498 3.326 3.167 6.472 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 3.416 7.325 4.639 4.344 4.078 6.002 6.733 6.210 5.747 5.335 7.435 6.802 6.247 5.759 8.111 7.360 6.710 9.787 8.760 7.887 7.139 3.837 4.303 4.031 8.162 4.946 4.607 8.983 4.968 5.328 6.145 5.650 5.216 4.833 6.495 5.938 5.453 5.029 6.194 5.660 5.197 12 10.575 9.385 8.384 7.536 6.814 13 11.348 9.986 8.853 7.904 7.103 6.424 14 12.106 10.563 8.244 7.367 6.628 5.842 5.342 5.468 5.575 5.092 4.675 6.002 6.142 8.559 7.606 6.811 9.295 15 12.849 11.118 9.712 16 13.578 11.652 10.106 8.851 7.824 6.974 17 14.292 12.166 10.477 9.122 8.022 6.265 5.162 4.730 4.357 4.033 5.668 6.373 5.749 5.222 7.120 4.775 4.391 4.059 3.771 8.201 7.250 3.786 12.659 10.828 9.372 13.134 11.158 9.604 6.467 6.550 7.366 4.097 3.799 18 14.992 19 15.678 20 16.351 21 17.011 4.110 3.831 5.818 5.273 4.812 4.419 4.080 8.365 5.877 5.316 4.843 4.442 13.590 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 4.460 14.029 11.764 10.017 8.649 7.562 6.687 5.973 5.384 4.891 4.476 4.121 17.658 14.451 12.042 10.201 8.772 7.645 6.743 6.011 5.410 4.909 4.488 4.130 18.292 14.857 12.303 10.371 8.883 7.718 6.792 6.044 5.432 4.925 4.499 4.137 18.914 15.247 12.550 10.529 8.985 7.784 6.835 6.073 5.451 4.937 4.507 4.143 19.523 15.622 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 4.514 4.147 3.834 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 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 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 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 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 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 27.355 19.793 15.046 11.925 9.779 8.244 5.548 4.997 4.544 4.166 3.846 7.105 6.233 Periods 2% 0.980 1 2 3 4 5 6 7 8 9 10 11 0 1 22 23 24 25 26 28 29 30 35 40 1.942 1.886 2.884 2.775 22% 26% 0.794 0. 1.457 1.424 13 1.981 1.923 13 2.404 2.320 2: 2.635 2 2.745 2 2 3.J 3. 3: 3: 3: 3, 5.008 4.611 4.265 4.315 3.020 3.242 3.619 3.421 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0.163 0.123 0.093 0.071 0.054 0.042 0.513 0.371 0.270 0.198 0.146 0.108 0.080 0.060 0.045 0.034 0.700 0.494 0.350 0.250 0.180 0.130 0.095 0.069 0.051 0.038 0.686 0.475 0.331 0.232 0.164 0.116 0.083 0.060 0.043 0.031 0.023 0.017 0.673 0.456 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.660 0.439 0.294 0.199 0.135 0.093 0.064 0.044 0.031 0.022 0.647 0.422 0.278 0.184 0.123 0.083 0.056 0.038 0.026 0.018 0.634 0.406 0.262 0.170 0.112 0.074 0.049 0.033 0.022 0.015 0.010 0.007 0.622 0.390 0.247 0.158 0.102 0.066 0.043 0.028 0.019 0.013 0.008 0.006 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 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 0.586 0.347 0.207 0.125 0.076 0.047 0.029 0.018 0.011 0.007 0.005 0.003 0.002 0.574 0.333 0.196 0.116 0.069 0.042 0.026 0.016 0.010 0.006 0.004 0.563 0.321 0.185 0.107 0.063 0.037 0.022 0.014 0.008 0.005 0.003 0.552 0.308 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.500 0.253 0.130 0.068 0.036 0.010 0.006 0.003 0.002 0.097 0.046 0.022 0.012 0.0 0.019 0.014 0.010 0.0 0.015 0.011 0.008 0.013 0.009 0.0 0.006 0.005 0.004 0.002 0.002 0.002 0.001 0.003 0.002 0.001 0.0 0.019 0.001 0.001 0.000 0.0 0.453 0.208 0.011 0.005 0.003 0.001 0.001 0.000 0.000 0.000 0.0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 18 19 20 21 22 23 24 25 25 27 28 29 30 35 40 0.924 0.906 0.888 0.871 0.853 0.837 0.788 0.773 4% % 8% 10% 0.962 0.943 0.926 0.909 0.925 0.890 0.857 0.826 0.889 0.840 0.794 0.751 0.792 0.735 0.683 0.747 0.681 0.621 0.758 0.743 12% 14% 0.893 0.877 0.797 0.712 0.636 0.592 0.567 0.507 0.452 0.404 0.361 0.855 0.822 20% 22% 24% 0.833 0.820 0.806 0.694 0.609 0.579 0.551 0.524 0.451 26% 28 0.794 0.7: 0.672 0.650 0.630 0.6 0.500 0.4 0.062 0.050 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4% 6% 8% 10% 12% 14% 16% 18% 1.020 1.040 1.060 1.080 1.100 1.120 1.160 1.180 1.200 1.2E 1.040 1.166 1.210 1.254 1.63 1.082 1.124 1.061 1.125 1.191 1.260 1.331 1.405 1.082 1.170 1.262 1.360 1.464 1.574 1.140 1.300 1.346 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1.732 2.261 2.937 3.797 4.887 6.261 1.346 1.801 2.397 3.172 4.177 5.474 1.373 1.873 2.540 3.426 4.595 6.130 8.137 10.748 14.129 18.488 17 1.400 1.948 2.693 3.700 5.054 6.866 9.276 12.468 16.672 22.186 29.384 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 1.457 2.107 3.026 4.316 6.116 8.613 12.056 16.777 23.214 31.948 43.736 59.568 80.731 20 1.486 2.191 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 53.358 73.864 101.721 139.3€ 2.279 3.400 5.034 7.400 10.804 15.668 22.574 32.324 46.005 65.096 91.592 128.169 178.40 2.370 3.604 5.437 8.140 12.100 17.861 26.186 38.142 55.206 79.418 113.574 161.492 228.3€ 2.465 3.820 5.871 8.954 13.552 45.008 66.247 96.889 140.831 203.480 292.30 2.563 4.049 6.341 9.850 15.179 53.109 79.497 118.205 174.631 256.385 374.14 4.292 95.396 144.210 216.542 323.045 175.936 268.512 407.037 137.371 214.642 332.955 512.867 20.362 30.376 23.212 35.236 2.666 6.848 10.835 17.000 26.462 40.874 478.90 62.669 73.949 114.475 2.772 4.549 47.414 612.95 7.396 11.918 19.040 7.988 13.110 21.325 8.627 14.421 23.884 55.000 87.260 30.167 2.883 4.822 34.390 784.63 2.999 5.112 39.204 63.800 102.967 164.845 261.864 412.864 646.212 1004.33 5.418 9.317 15.863 26.750 44.693 74.009 121.501 197.814 319.474 511.952 814.228 1285.55 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 389.758 634.820 1025.927 1645.50 7.686 14.785 28.102 52.800 98.100 180.314 327.997 590.668 1053.402 1861.054 3258.135 5653.91 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1469.772 2847.038 5455.913 10347.175 19426.68 Periods 2% 1 2 3 4 100 15 18 19 0 1 2 3 4 5 6 7 8 38 35 50 1.104 1.217 1.338 21 1.516 22 1.546 23 1.577 24 1.608 1.641 25 26 1.673 27 1.707 28 1.741 29 1.776 3.119 30 1.811 3.243 2.000 3.946 40 2.208 4.801 20% 22% 24% 26% 1.220 1.240 1.260 3.176 4.002 28% 5.62 7.20 9.22 11.80 15.11 19.34 24.75 25.421 31.65 4% 6% 8% 10% 24% 28% 1.000 1.000 1.00 1.000 1.000 2.020 2.040 2.260 2.28 3.848 3.91: 5.848 31.643 34.945 40.238 45.031 13.412 15.026 50.895 57.739 42.219 48.497 64.110 73.751 109.61 14% 16% 18% 20% 22% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 2.220 2.240 3.060 3.122 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 3.708 3.778 4.122 4.246 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.524 5.684 5.204 5.416 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 7.740 8.048 8.368 6.308 6.633 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 10.442 10.980 11.544 7.434 7.898 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 13.740 14.615 15.546 8.583 9.214 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 17.762 19.123 20.588 9.755 10.583 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 22.670 24.712 26.940 10.950 12.006 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 28.657 12.169 13.486 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 35.962 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 44.874 14.680 16.627 18.882 21.495 24.523 28.029 32.089 36.786 55.746 15.974 18.292 21.015 24.215 27.975 32.393 37.581 43.672 50.818 59.196 69.010 80.496 93.926 17.293 20.024 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 85.192 100.815 119.347 141.30 18.639 21.825 25.673 30.324 35.950 42.753 50.980 60.925 72.939 87.442 104.935 126.011 151.377 181.86 20.012 23.698 28.213 33.750 40.545 48.884 59.118 71.673 87.068 105.931 129.020 157.253 191.735 233.79 37.450 45.599 55.750 68.394 84.141 103.740 128.117 158.405 195.994 242.585 300.25 41.446 51.159 63.440 78.969 98.603 123.414 154.740 194.254 244.033 306.658 385.32 57.275 72.052 91.025 115.380 146.628 186.688 237.989 303.601 387.389 494.21 64.002 81.699 104.768 134.841 174.021 225.026 291.347 377.465 489.110 633.59 71.403 92.503 120.436 157.415 206.345 271.031 356.443 469.056 617.278 811.99 46.996 60.893 79.543 104.603 138.297 183.601 244.487 326.237 435.861 582.630 778.771 1040.35 50.816 66.765 88.497 118.155 158.659 213.978 289.494 392.484 532.750 723.461 982.251 1332.65 41.646 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 650.955 44.312 59.156 79.954 109.182 150.334 208.333 290.088 405.272 567.377 795.165 47.084 63.706 87.351 121.100 169.374 238.499 337.502 479.221 681.853 971.102 49.968 68.528 95.339 134.210 190.699 272.889 392.503 566.481 819.223 1185.744 1716.101 2481.586 3583.34 52.966 73.640 103.966 148.631 214.583 312.094 456.303 669.447 984.068 1447.608 2128.965 3127.798 4587.68 56.085 79.058 113.263 164.494 241.333 356.787 530.312 790.948 1181.882 1767.081 2640.916 3942.026 5873.23 73.652 111.435 172.317 271.024 431.663 693.573 1120.713 1816.652 2948.341 4783.645 7750.225 12527.442 20188.96 40 60.402 95.026 154.762 259.057 442.593 767.091 1342.025 2360.757 4163.213 7343.858 12936.535 22728.803 39792.982 69377.48 21.412 25.645 30.9 22.841 27.671 33.760 36.786 45.762 39.993 50.423 24.297 29.778 25.783 31.969 27.299 34.248 36.618 39.083 43.392 55.457 28.845 30.422 32.030 898.092 1238.636 1706.80 26 33.671 1114.634 1561.682 2185.70 1383.146 1968.719 2798.70 35.344 40.568 35 49.994 Periods 2% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 20022PINESERRRRE 18 19 21 23 24 25 27 28 29 30 37.051 38.792 6.01 8.70 12.13 16.53 22.16 29.38 38.59 50.39 65.51 84.85 6% 10% 12% 14% 16% 18% 20% 24% 4% 0.962 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 1.492 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 2.042 3.170 3.037 2.914 2.798 2.690 2.589 2.494 3.791 3.433 3.274 3.127 2.991 2.864 4.623 4.355 4.111 3.889 3.808 3.630 3.465 3.312 4.713 4.452 4.212 3.993 3.605 5.601 5.242 4.917 3.685 3.498 3.326 3.167 6.472 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 3.416 7.325 4.639 4.344 4.078 6.002 6.733 6.210 5.747 5.335 7.435 6.802 6.247 5.759 8.111 7.360 6.710 9.787 8.760 7.887 7.139 3.837 4.303 4.031 8.162 4.946 4.607 8.983 4.968 5.328 6.145 5.650 5.216 4.833 6.495 5.938 5.453 5.029 6.194 5.660 5.197 12 10.575 9.385 8.384 7.536 6.814 13 11.348 9.986 8.853 7.904 7.103 6.424 14 12.106 10.563 8.244 7.367 6.628 5.842 5.342 5.468 5.575 5.092 4.675 6.002 6.142 8.559 7.606 6.811 9.295 15 12.849 11.118 9.712 16 13.578 11.652 10.106 8.851 7.824 6.974 17 14.292 12.166 10.477 9.122 8.022 6.265 5.162 4.730 4.357 4.033 5.668 6.373 5.749 5.222 7.120 4.775 4.391 4.059 3.771 8.201 7.250 3.786 12.659 10.828 9.372 13.134 11.158 9.604 6.467 6.550 7.366 4.097 3.799 18 14.992 19 15.678 20 16.351 21 17.011 4.110 3.831 5.818 5.273 4.812 4.419 4.080 8.365 5.877 5.316 4.843 4.442 13.590 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 4.460 14.029 11.764 10.017 8.649 7.562 6.687 5.973 5.384 4.891 4.476 4.121 17.658 14.451 12.042 10.201 8.772 7.645 6.743 6.011 5.410 4.909 4.488 4.130 18.292 14.857 12.303 10.371 8.883 7.718 6.792 6.044 5.432 4.925 4.499 4.137 18.914 15.247 12.550 10.529 8.985 7.784 6.835 6.073 5.451 4.937 4.507 4.143 19.523 15.622 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 4.514 4.147 3.834 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 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 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 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 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 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 27.355 19.793 15.046 11.925 9.779 8.244 5.548 4.997 4.544 4.166 3.846 7.105 6.233 Periods 2% 0.980 1 2 3 4 5 6 7 8 9 10 11 0 1 22 23 24 25 26 28 29 30 35 40 1.942 1.886 2.884 2.775 22% 26% 0.794 0. 1.457 1.424 13 1.981 1.923 13 2.404 2.320 2: 2.635 2 2.745 2 2 3.J 3. 3: 3: 3: 3, 5.008 4.611 4.265 4.315 3.020 3.242 3.619 3.421 3.786 3.566 3.923 3.682 4.494 4.192 4.035 3.776 4.656 4.327 4.793 4.127 3.851 4.439 4.910 4.533 4.203 3.912 3.962 4.001 2.885 3.083 3.241 3.366 3.465 3.543 3.606 3.656 3.695 3.726 3.751 3.808 3.816 3.822 3.827 21 3. 3. 3. 3 3.! 3. 3. 3! 3. 3. 3! 3. 3. 3! 3.1 3.! 3. 3.1 3.! Periods 2% 0.980 0.961 0.942 1 16% 18% 0.847 0.862 0.769 0.743 0.718 0.675 0.641 0.423 0.397 0.3 0.552 0.516 0.482 0.519 0.476 0.437 0.402 0.370 0.456 0.410 0.370 0.335 0.303 0.341 0.315 0.2 0.790 0.705 0.630 0.564 0.275 0.250 0.2 0.760 0.665 0.583 0.513 0.279 0.249 0.222 0.198 0.1 0.400 0.354 0.314 0.351 0.305 0.266 0.731 0.627 0.540 0.467 0.233 0.204 0.703 0.592 0.500 0.424 0.179 0.157 0.1: 0.144 0.125 0.11 0.116 0.099 0.0 0.094 0.079 0.820 0.676 0.386 0.322 0.558 0.463 0.527 0.429 0.350 0.804 0.650 0.0 0.0 0.0 0.442 0.340 0.125 0.099 0.062 0.049 0.039 0.0 0.108 0.084 0.051 0.040 0.031 0.00 0.032 0.025 0.0 16 0.728 17 0.714 0.026 0.020 0.0 0.028 0.021 0.016 0.0 0.308 0.263 0.225 0.194 0.167 0.270 0.227 0.191 0.162 0.137 0.287 0.237 0.195 0.162 0.135 0.112 0.625 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.092 0.076 0.601 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.075 0.061 0.577 0.263 0.205 0.160 0.078 0.555 0.417 0.315 0.239 0.183 0.140 0.065 0.534 0.394 0.292 0.218 0.163 0.123 0.093 0.071 0.054 0.042 0.513 0.371 0.270 0.198 0.146 0.108 0.080 0.060 0.045 0.034 0.700 0.494 0.350 0.250 0.180 0.130 0.095 0.069 0.051 0.038 0.686 0.475 0.331 0.232 0.164 0.116 0.083 0.060 0.043 0.031 0.023 0.017 0.673 0.456 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.660 0.439 0.294 0.199 0.135 0.093 0.064 0.044 0.031 0.022 0.647 0.422 0.278 0.184 0.123 0.083 0.056 0.038 0.026 0.018 0.634 0.406 0.262 0.170 0.112 0.074 0.049 0.033 0.022 0.015 0.010 0.007 0.622 0.390 0.247 0.158 0.102 0.066 0.043 0.028 0.019 0.013 0.008 0.006 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 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 0.586 0.347 0.207 0.125 0.076 0.047 0.029 0.018 0.011 0.007 0.005 0.003 0.002 0.574 0.333 0.196 0.116 0.069 0.042 0.026 0.016 0.010 0.006 0.004 0.563 0.321 0.185 0.107 0.063 0.037 0.022 0.014 0.008 0.005 0.003 0.552 0.308 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.500 0.253 0.130 0.068 0.036 0.010 0.006 0.003 0.002 0.097 0.046 0.022 0.012 0.0 0.019 0.014 0.010 0.0 0.015 0.011 0.008 0.013 0.009 0.0 0.006 0.005 0.004 0.002 0.002 0.002 0.001 0.003 0.002 0.001 0.0 0.019 0.001 0.001 0.000 0.0 0.453 0.208 0.011 0.005 0.003 0.001 0.001 0.000 0.000 0.000 0.0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 18 19 20 21 22 23 24 25 25 27 28 29 30 35 40 0.924 0.906 0.888 0.871 0.853 0.837 0.788 0.773 4% % 8% 10% 0.962 0.943 0.926 0.909 0.925 0.890 0.857 0.826 0.889 0.840 0.794 0.751 0.792 0.735 0.683 0.747 0.681 0.621 0.758 0.743 12% 14% 0.893 0.877 0.797 0.712 0.636 0.592 0.567 0.507 0.452 0.404 0.361 0.855 0.822 20% 22% 24% 0.833 0.820 0.806 0.694 0.609 0.579 0.551 0.524 0.451 26% 28 0.794 0.7: 0.672 0.650 0.630 0.6 0.500 0.4 0.062 0.050 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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a Calculation of Net Present Value NPV Initial cash Flow PV0 110000 Saving in operating cash cost fo... View the full answer