APPENDIX 1: PRESENT VALUE OF R1

APPENDIX 2 : PRESENT VALUE OF A REGULAR ANNUITY OF R1 PER PERIOD FOR N PERIODS

5.2 Use the information provided below to calculate the Internal Rate of Return (expressed to two (5 marks) decimal places) using interpolation. INFORMATION A machine with a purchase price of R1 200 000 is estimated to eliminate manual operations by R400 000 per year. The machine is expected to have a useful life of four years. Number d Periods 1 e 4 5 8 P 11 St p A 1% M 30 9 0.0010 8 * 3 0.9705 09423 09151 08800 0838 0.8306 08163 07238 0.7722 0.7513 07312 07118 0.931 0.6750 0.6575 08407 0.6044 06086 0.5234 0.5787 0.51:20 4% 0.0001 09804 090909015 09504 0.9434 09345 09259 09174 0.001 0.0009 0.8029 0.8850 OLOER 08705 08131 0.750 0.71 OLEDGE S 7% 5 * $ 0.9603 09612 0.0425 0.2345 000 0.8900 0.8734 08573 0.3417 02254 08115 0.7972 0.7831 07825 0.7581 0.7432 07305 07182 07062 05544 0.5400 3 13% 0.0025 08535 0.7804 07307 05758 0.74 0.5890 0.5403 05019 0.4085 04330 04030 0.378203506 0390 03050 Q8674 0.7885 0.7014 08:345 0.5588 0.4970 0.4440 03971 0.3555 0.3166 07419 $ 0.9515 09057 0.8685 08219 0.7835 07473 07130 0.5806 0.5400 0000 0.5095 0.5874 0.5408 0.5194 04972 04781 04581 04371 0419004019 0377 04717 15% 10% 0.9420 08880 08375 0.7908 07482 0.7050 0.0003 08302 0.5063 0.5845 0.5340 0.500 0.4803 04558 0430 04104 03808 03704 03521 03340 0.21 0.0080 0.6772 08006 02238 0.8865 0.8548 08227 07821 0.750 0.7350 0.7084 0.5830 0.6587 0.6355 0.8133 0.5021 0.5718 05523 0.5337 05158 0.4987 0.4803 15 08013 07430 0.5419 0.5553 04810 04173 034 03152 02745 02204 0.2000 0.187 0.190001401 01229 01079 0.0040 13 OL8787 0.7730 0.6810 0.0006 0.5303 0.4688 04150 03677 0.32 0.3997 0.2575 0.2002 0.2042 0.182101825 0.1452 0.1290 0.1163 0.1042 0.0035 OLOSSO 0.9143 08308 07004 0705440 0.5019 05439 05002 0.4504 0.434103209 03505 0.3389 03075 02543 03:30 0.3434 0256 020000193 0.1342 14 0.87:00 0.7579 08011 05775 05051 04423 03878 03405 0.2002 0.2633 0.2220 0.2045 0.1807 0.157 01413 0.1252 01110 00GES 00876 0.0779 00440 0.0053 08303 07441 06758 08139 05584 05083 04532 04224 0.3855 0.3502 0.3220 0.2045 0.27 0.2472 ZAST 02080 01911 0.1750 01015 01074 0.5504 013048 0.107 # 0.8547 0.8475 08403 0.8333 0.0051 OLDT 0.5835 0.5470 05132 04817 0.45 0.4251 0.3000 0.3759 0.3538 3332 03130 0.2059 0.2791 0.2007 04540 03006 0.2053 01420 0.0072 19% 0.3715 0.21 0.1407 00872 0.0543 OLET 05864 0.5703 04745 0.3957 0.3305 0.2765 02317 0.1945 01635 0.1377 01101 0.0981 0.0830 0.07030000 9 08195 0730 05537 04584 0.3789 03118 02564 02145 0.1784 0.1485 0.1340 0.1037 0.0808 0.07:39 00011 00514 0.0961 00535 0.0303 08043 07234 05456 0.5847 0.588 04751 04390 0.3875 0.3505 0.3173 0.2875 0.2007 0.2390 021491954 0.1778 01619 01476 0.1345 0.0850 0.5022 05339 04581 0.3936 0.3367 02919 02519 02176 0.1883 0.1631 0.1415 0.1220 0-1000 00930 00011 17 08444 07142 0:5050 05134 0433 0371403166 0270302311 0.1978 0.1595 0.1455 0.1252 0.1078 1.0629 1:0812 0.0093 005000050000451 0.0225 0.2548 0.250 0.3487 25% 0.8000 0.2567 0.2307 0.275 0.1859 01585 01530 01372 0.1340 0.1122 0.0667 0.8360 0.7002 0.5874 04238 04155 0.3503 0.2950 0.2502 0.2120 0.1790 0.1528 0.1300 01108 0.0045 0.0605 0.0001 0.0522 0.0508 0.0437 0.0375 00180 25 07798 05305 04778 03751 0.2953 0.2330 01842 01450 01100 0.0023 0.0735 0.0588 0.0471 0.0378 0.0304 0045 0.0127 0.010000139 0.0105 0.0038 0.23330 0.1678 0.0006 0:0450 0.0318 0.21 0.0154 0.0107 0.0075 0.0053 0.0037 0.0835 00730 0.0640 OLOS 00708 00018 0.0541 OLOMST 05521 04120 0.3083 0231401741 0.1314 0.0004 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0151 0.0115 0.0090 0.0070 00054 0.0042 0.0012 0.0173 00000 0.0057 0.0003 0.0019 00011 0.0000 0.0004 0.0009 0.0001 0.000 0.0500 00431 0.0367 0.0313 00144 0.0433 0.0365 0.0308 0.021 0.0115 0.0019 0.0013 0:0010 0.0007 . 0.0330 00213 0.0134 0.0065 0.0054 0.0035 0.0002 0.0014 0.0000 0.0005 0.0004 0.0003 0.0002 0.0001 0.0001 Number d Periods 1 3 4 in 8 9 P 11 St 15 P A M R * 9 8 1.9704 1.9415 1.9135 1.8801 1.8504 1.8334 1.8080 1.7833 4.8534 0.0001 09804 0.9700 02015 0.9504 0.9434 0.9345 0.0250 09174 09091 0.0000 0.00 0.8850 0.8772 2.9410 2.8830 23366 27751 2.7232 26730 2.6343 25771 3.0000 3.8077 3.7171 3000 3.5400 5.7955 6.7992 9.4713 10.3076 13 12.1337 11.3464 10.4350 17 15.543 * 4.7135 7.51517 7.3955 70197 737 50014 54172 14,7179 14 13.0087 12:1062 11.2001 10.5831 9.8080 9.7868 5% 38347 44518 4.3005 1.23:03 10021 5.7864 5.5834 5.380 8.083 8.5302 8.1100 73217 7:3001 13.5777 12:5011 5.0757 4.9173 4.7085 25.8077 223965 6.2008 11.2551 10.5753 9.2540 9.3851 8.8033 8.3838 7.9427 7.5301 9:2856 9:3090 12.5004 7 8.7005 8.3064 7.8650 7A9E7 27.3558 23.1148 8.5000 8102 7.7861 7.4353 7.1078 6.80-17 6.5152 6.2460 5.0052 5.7500 5.5370 5382 5.1317 49454 47716 4.0065 0.3950 11.053 10.8378 10.1050 18.0458 16.3514 14.8775 13.5003 12.42 11.4000 4.1002 3.00 14.2919 13.1001 12:1057 112741 10.4773 9.760/2 13.7535 12:4508 11.0890 10.8075 10.0561 8.857 8.3577 7.9038 31,4236 25.7298 21.4822 18.2550 17.292.0 15.3925 137548 3.3121 15.7819 44,0550 34.7800 27.5756 22335 18.9303 16.1514 17.1591 15.0453 13.3017 67101 8.7455 8.2442 22.0232 10.5235 17.4131 15021 14.0930 127834 11.0538 10.50743 10% 11% 1.7591 14.0392 1:3% 8.8514 1.7355 1.7125 1.5901 1.081 1.5467 25313 2.4869 24437 24018 23812 2321623332 15% 3.2397 3.1500 3.1034 30373 2074529137 2.8550 5.9713 5.7408 5.5348 5.3349 5.1401 49076 4.7988 4.6380 44873 43436 42072 40776 3.0544 3.83772 13.8351 1:2.8403 11.9379 11.1184 10.3797 9.7122 9.1079 8.55.05 8.0007 7.0001 7.1909 181095434 61422 58474 5.5755 53042 5.0916 48759 40755 11.2045 0.8021 1.0052 4.3553 4.2305 41114 3.0075 3.8667 3.7845 3.0647 5.2004 50330 4.8084 4.7122 4.5038443 4.7563 4.1504 4,0380 3.34 3.8115 3.7057 3.0045 17% 18% 3.8807 3.7208 3.0950 3.5048 3.5172 34331 33502 3.2743 31908 3.1272 3.0578 2.900 2.3459 2.2006 21743 21300 21015 08547 08475 0.643 08303 19% 20% 1.5652 15858 1.5455 1.508 7.1300 6.8052 1.4951 6.2005 5.9377 5.0850 5.457 52337 5.080 4836445500 4405 4371 27432 201 2.6380 2.5867 15.0785 14.3438 13.1330 12.0853 11.1581 10.3358 0.0035 8.2501 8.3540 7.8308 7.3058 69880 6.5504.1982 5.8775 5.5845 53182 5.0700 4.8435 6.4177 6.1448 58862 5.5502 5.422 5.2181 50188 4.8332 4.6586 4.4041 3.580234970 3.4098 1.3255 13.8007 12.2335 10.2017 9.9148 90417 8.3045 76752 7.1387 4.4505 438 4.163 4.0310 7.1007 6.8137 6.49346.1944 5.9178 5.0803 54305 5.1971 49684 4.7982 4.010544392 1:2.3705 11.0480 9.9072 7.4800 7.1034 6.7400 642356.1218 5.8434 5.5831 5.3423 5.1183 49005 47147 4.537 7.782 7.3007 6.9819 82 63025 0.0021 57245 54875 5.2093 50081 4.8003 4.0106 7.837 7.3792 69740 6.0030 6251 52640 5.0085 54053 5.104 4.9377 9.1215 8.5436 8.0016 75488 7.1126 67291 3729 40472 57487 54748 52223 49897 47745 9.3719 8.7556 8.2014 7.7016 72497 5.8390 64874 1280 5.8178 5.5339 5.2732 5.0333 48122 9.073083040 7.0873 7.1401 1.0051 9.8181 0.1355 8.5136 7.9833 7.4894 70348 843112593 5.0398 56478 5:35 5.1000 48195 4.1925 11.2578 10.2737 94309 8.5938 8.0552 7.4957 7.0027 15000 6.1772 58294 5.5108 9.3040 9.0770 84217 7.8431 7.3300 0.8729 54641 6.0971 5.7862 549805.1961 6.3402 10.7574 9.7791 8.2511 8.3438 75344 7:1050 45418 6.2335 5.8713 5.5482 5.2582 5.2347 4.5005 6.343 5.8601 5.5541 5.200 4.9905 49789 5.8819 5.5553 5.2630 4.9000