Consider how Pine Valley, a popular ski resort, could use capital budgeting to decide whether the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider how Pine Valley, a popular ski resort, could use capital budgeting to decide whether the $8.5 million Brook Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value annuity factor table.) Read the requirements. (Click the icon to view the present value factor table.) (Click the icon to view the future value factor table.) Requirement 1. What is the project's NPV? Is the investment attractive? Why or why not? Calculate the net present value of the expansion. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) Net present value of expansion Data table Assume that Pine Valley's managers developed the following estimates concerning a planned expansion to its Brook Park Lodge (all numbers assumed): Number of additional skiers per day.. Average number of days per year that weather conditions allow skiing at Pine Valley.. Useful life of expansion (in years)..... Average cash spent by each skier per day... Average variable cost of serving each skier per day . $ Cost of expansion..... ... $ 8,500,000 Discount rate..... 12% Assume that Pine Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $800,000 at the end of its ten-year life. It has already calculated the average annual net cash inflow per year to be $1,905,024. 121 164 10 240 144 Reference Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 14% 16% 18% 10% 12% 0.909 0.893 0.877 Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.862 0.847 0.926 1.783 1.736 1.690 Period 2 1.970 1.859 1.833 1.605 1.566 1.942 1.913 1.886 2.884 2.829 2.775 Period 3 1.647 2.941 2.723 2.673 2.577 2.487 2.402 2.322 2.246 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 2.690 3.274 3.127 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 5.601 5.417 3.889 3.685 3.498 6.472 6.230 4.288 4.039 3.812 7.325 5.242 5.076 4.917 4.623 4.355 4.111 6.002 5.786 5.582 5.206 4.868 4.564 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 Period 25 22.023 19.523 17.413 15.622 14.094 | 12.783 10.675 9.077 7.843 6.873 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.814 6.194 5.660 5.197 4.793 7.103 6.424 5.842 5.342 4.910 7.367 6.628 6.002 5.468 5.008 7.606 6.811 6.142 5.575 5.092 20% 0.833 1.528 2.174 2.106 2.589 2.991 5.795 6.728 7.652 8.566 9.471 3.326 3.605 3.837 4.031 4.192 5.453 5.029 4.656 4.327 4.439 5.353 5.929 6.097 5.467 6.177 5.517 6.233 5.548 4.533 4.611 4.675 4.870 4.948 4.979 4.997 Reference Periods 1% Period 1 0.990 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 2% 3% 4% 5% 0.980 0.971 0.962 0.952 0.907 0.980 0.961 0.943 0.925 0.971 0.942 0.915 0.889 0.864 0.961 0.924 0.888 0.855 0.823 0.951 0.906 0.863 0.822 0.784 Present Value of $1 6% 8% 10% 12% 0.943 0.926 0.909 0.893 0.890 0.857 0.826 0.797 0.794 0.751 0.712 0.681 0.621 0.567 0.840 0.792 0.735 0.683 0.636 0.747 0.746 0.705 0.630 0.564 0.711 0.665 0.583 0.513 0.677 0.627 0.540 0.467 0.500 0.424 0.463 0.386 0.429 0.350 0.287 0.237 0.397 0.319 0.257 0.208 0.368 0.290 0.229 0.182 0.340 0.263 0.205 0.160 0.315 0.239 0.183 0.140 0.942 0.888 0.837 0.790 0.933 0.871 0.813 0.760 0.853 0.789 0.731 0.766 0.703 0.645 0.592 0.820 0.744 0.676 0.614 0.558 0.837 0.923 0.914 0.905 Period 11 0.896 0.804 0.722 Period 12 0.887 0.788 0.701 0.625 0.879 0.773 0.681 Period 13 Period 14 0.870 0.758 0.661 0.577 Period 15 0.861 0.743 0.642 0.555 0.650 0.585 0.527 0.557 0.497 0.601 0.530 0.469 0.505 0.442 0.481 0.417 Period 20 0.820 0.673 0.554 0.456 0.377 Period 25 0.780 0.610 0.478 0.375 0.295 Period 30 0.552 0.412 0.308 0.231 0.742 Period 40 0.672 0.453 0.307 0.208 0.142 0.312 0.233 0.174 0.097 14% 16% 18% 20% 0.877 0.862 0.847 0.833 0.743 0.718 0.694 0.769 0.675 0.641 0.609 0.579 0.592 0.552 0.516 0.482 0.519 0.476 0.437 0.402 0.507 0.456 0.410 0.370 0.452 0.400 0.354 0.314 0.404 0.351 0.305 0.266 0.361 0.308 0.263 0.225 0.322 0.270 0.227 0.191 0.195 0.162 0.135 0.168 0.137 0.112 0.145 0.116 0.093 0.125 0.099 0.078 0.108 0.084 0.065 0.215 0.149 0.104 0.073 0.146 0.092 0.059 0.038 0.099 0.057 0.033 0.020 0.046 0.022 0.011 0.005 0.335 0.279 0.233 0.194 0.162 0.051 0.037 0.026 0.024 0.016 0.010 0.012 0.007 0.004 0.003 0.001 0.001 Reference Periods 1% Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 2% 1.000 1.000 1.000 2.010 2.020 2.030 4.060 3.030 3.060 3.091 4.122 4.184 5.204 5.309 5.101 Future Value of Annuity of $1 3% 4% 5% 6% 1.000 1.000 1.000 2.040 2.050 2.060 3.122 3.153 3.184 4.246 4.310 4.375 5.416 5.526 5.637 14% 16% 18% 1.000 1.000 1.000 2.120 2.140 2.160 2.180 3.440 3.506 3.572 4.779 4.921 5.066 6.353 6.610 6.877 6.802 6.975 8.142 8.394 12% 8% 10% 1.000 1.000 1.000 2.080 2.100 3.246 3.310 3.374 4.506 4.641 5.867 6.105 6.152 6.308 6.468 6.633 7.336 7.716 8.115 8.536 8.977 7.214 7.434 7.662 7.898 8.286 8.583 8.892 9.214 14.240 8.923 9.487 10.089 10.730 11.414 9.549 9.897 10.637 11.436 12.300 13.233 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 5.215 7.154 20% 1.000 2.200 3.640 5.368 7.442 9.442 9.930 12.142 12.916 15.327 16.499 19.086 20.799 19.337 21.321 23.521 25.959 42.219 50.818 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 30.850 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 14.947 15.974 17.086 18.292 19.599 | 21.015| 24.215 27.975 32.393 37.581 43.672 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 34.785 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 51.660 60.965 115.380 146.628 186.688 249.214 342.603 471.981 40.568 47.575 28.755 32.150 34.931 39.581 48.497 59.196 72.035 Reference Periods 1% Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 2% 3% 4% 1.010 1.020 1.030 1.040 1.020 1.040 1.061 1.082 1.030 1.061 1.093 1.125 1.041 1.082 1.126 1.170 1.216 1.217 1.276 1.051 1.104 1.159 1.062 1.126 1.194 1.072 1.149 1.230 1.316 1.407 1.083 1.172 1.267 1.369 1.477 1.195 1.305 1.423 1.219 1.344 1.480 1.094 1.105 1.116 1.127 1.138 1.149 1.161 Future Value of $1 5% 8% 10% 12% 14% 16% 18% 1.140 1.160 1.180 1.300 1.346 1.392 6% 1.050 1.060 1.080 1.100 1.120 1.103 1.124 1.166 1.210 1.254 1.158 1.191 1.260 1.331 1.405 1.482 1.262 1.360 1.464 1.574 1.689 1.811 1.338 1.469 1.611 1.561 1.643 1.939 1.762 1.925 2.100 2.288 1.220 1.486 1.282 1.641 1.348 1.811 1.489 2.208 1.265 1.340 1.419 1.587 1.772 1.504 1.714 1.949 1.594 1.851 2.144 1.551 1.689 1.999 1.629 1.791 2.159 1.806 2.191 2.094 2.666 2.427 3.243 3.262 4.801 1.974 2.195 2.436 2.211 2.502 2.826 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 1.294 1.469 1.665 1.886 2.133 2.720 3.452 1.732 1.980 2.261 2.937 3.797 1.558 1.801 2.079 2.397 3.172 4.177 5.474 1.319 1.513 1.346 2.653 3.386 4.322 7.040 2.700 2.986 3.185 3.583 4.300 2.853 3.278 3.759 3.803 4.435 5.160 4.411 5.234 6.192 3.252 3.707 4.226 5.117 6.176 7.430 4.818 5.936 7.288 8.916 4.363 5.492 6.886 8.599 10.699 12.839 4.887 6.261 7.988 10.147 7.138 9.266 11.974 15.407 2.476 2.358 2.773 2.594 3.106 20% 1.200 1.440 1.728 2.074 2.488 3.207 4.661 13.743 19.461 27.393 38.338 6.727 9.646 6.848 10.835 17.000 4.292 26.462 40.874 62.669 95.396 10.063 17.449 29.960 50.950 85.850 143.371 237.376 5.743 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 Requirements 1. What is the project's NPV? Is the investment attractive? Why or why not? 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not? Consider how Pine Valley, a popular ski resort, could use capital budgeting to decide whether the $8.5 million Brook Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value annuity factor table.) Read the requirements. (Click the icon to view the present value factor table.) (Click the icon to view the future value factor table.) Consider how Pine Valley, a popular ski resort, could use capital budgeting to decide whether the $8.5 million Brook Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value annuity factor table.) Read the requirements. (Click the icon to view the present value factor table.) (Click the icon to view the future value factor table.) Requirement 1. What is the project's NPV? Is the investment attractive? Why or why not? Calculate the net present value of the expansion. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) Net present value of expansion Requirement 1. What is the project's NPV? Is the investment attractive? Why or why not? Calculate the net present value of the expansion. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) Net present value of expansion Data table Assume that Pine Valley's managers developed the following estimates concerning a planned expansion to its Brook Park Lodge (all numbers assumed): Number of additional skiers per day.. Average number of days per year that weather conditions allow skiing at Pine Valley.. Useful life of expansion (in years)..... Average cash spent by each skier per day... Average variable cost of serving each skier per day . $ Cost of expansion..... ... $ 8,500,000 Discount rate..... 12% Assume that Pine Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $800,000 at the end of its ten-year life. It has already calculated the average annual net cash inflow per year to be $1,905,024. 121 164 10 240 144 Data table Assume that Pine Valley's managers developed the following estimates concerning a planned expansion to its Brook Park Lodge (all numbers assumed): Number of additional skiers per day.. Average number of days per year that weather conditions allow skiing at Pine Valley.. Useful life of expansion (in years)..... Average cash spent by each skier per day... Average variable cost of serving each skier per day . $ Cost of expansion..... ... $ 8,500,000 Discount rate..... 12% Assume that Pine Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $800,000 at the end of its ten-year life. It has already calculated the average annual net cash inflow per year to be $1,905,024. 121 164 10 240 144 Reference Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 14% 16% 18% 10% 12% 0.909 0.893 0.877 Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.862 0.847 0.926 1.783 1.736 1.690 Period 2 1.970 1.859 1.833 1.605 1.566 1.942 1.913 1.886 2.884 2.829 2.775 Period 3 1.647 2.941 2.723 2.673 2.577 2.487 2.402 2.322 2.246 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 2.690 3.274 3.127 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 5.601 5.417 3.889 3.685 3.498 6.472 6.230 4.288 4.039 3.812 7.325 5.242 5.076 4.917 4.623 4.355 4.111 6.002 5.786 5.582 5.206 4.868 4.564 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 Period 25 22.023 19.523 17.413 15.622 14.094 | 12.783 10.675 9.077 7.843 6.873 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.814 6.194 5.660 5.197 4.793 7.103 6.424 5.842 5.342 4.910 7.367 6.628 6.002 5.468 5.008 7.606 6.811 6.142 5.575 5.092 20% 0.833 1.528 2.174 2.106 2.589 2.991 5.795 6.728 7.652 8.566 9.471 3.326 3.605 3.837 4.031 4.192 5.453 5.029 4.656 4.327 4.439 5.353 5.929 6.097 5.467 6.177 5.517 6.233 5.548 4.533 4.611 4.675 4.870 4.948 4.979 4.997 Reference Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 14% 16% 18% 10% 12% 0.909 0.893 0.877 Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.862 0.847 0.926 1.783 1.736 1.690 Period 2 1.970 1.859 1.833 1.605 1.566 1.942 1.913 1.886 2.884 2.829 2.775 Period 3 1.647 2.941 2.723 2.673 2.577 2.487 2.402 2.322 2.246 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 2.690 3.274 3.127 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 5.601 5.417 3.889 3.685 3.498 6.472 6.230 4.288 4.039 3.812 7.325 5.242 5.076 4.917 4.623 4.355 4.111 6.002 5.786 5.582 5.206 4.868 4.564 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 Period 25 22.023 19.523 17.413 15.622 14.094 | 12.783 10.675 9.077 7.843 6.873 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.814 6.194 5.660 5.197 4.793 7.103 6.424 5.842 5.342 4.910 7.367 6.628 6.002 5.468 5.008 7.606 6.811 6.142 5.575 5.092 20% 0.833 1.528 2.174 2.106 2.589 2.991 5.795 6.728 7.652 8.566 9.471 3.326 3.605 3.837 4.031 4.192 5.453 5.029 4.656 4.327 4.439 5.353 5.929 6.097 5.467 6.177 5.517 6.233 5.548 4.533 4.611 4.675 4.870 4.948 4.979 4.997 Reference Periods 1% Period 1 0.990 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 2% 3% 4% 5% 0.980 0.971 0.962 0.952 0.907 0.980 0.961 0.943 0.925 0.971 0.942 0.915 0.889 0.864 0.961 0.924 0.888 0.855 0.823 0.951 0.906 0.863 0.822 0.784 Present Value of $1 6% 8% 10% 12% 0.943 0.926 0.909 0.893 0.890 0.857 0.826 0.797 0.794 0.751 0.712 0.681 0.621 0.567 0.840 0.792 0.735 0.683 0.636 0.747 0.746 0.705 0.630 0.564 0.711 0.665 0.583 0.513 0.677 0.627 0.540 0.467 0.500 0.424 0.463 0.386 0.429 0.350 0.287 0.237 0.397 0.319 0.257 0.208 0.368 0.290 0.229 0.182 0.340 0.263 0.205 0.160 0.315 0.239 0.183 0.140 0.942 0.888 0.837 0.790 0.933 0.871 0.813 0.760 0.853 0.789 0.731 0.766 0.703 0.645 0.592 0.820 0.744 0.676 0.614 0.558 0.837 0.923 0.914 0.905 Period 11 0.896 0.804 0.722 Period 12 0.887 0.788 0.701 0.625 0.879 0.773 0.681 Period 13 Period 14 0.870 0.758 0.661 0.577 Period 15 0.861 0.743 0.642 0.555 0.650 0.585 0.527 0.557 0.497 0.601 0.530 0.469 0.505 0.442 0.481 0.417 Period 20 0.820 0.673 0.554 0.456 0.377 Period 25 0.780 0.610 0.478 0.375 0.295 Period 30 0.552 0.412 0.308 0.231 0.742 Period 40 0.672 0.453 0.307 0.208 0.142 0.312 0.233 0.174 0.097 14% 16% 18% 20% 0.877 0.862 0.847 0.833 0.743 0.718 0.694 0.769 0.675 0.641 0.609 0.579 0.592 0.552 0.516 0.482 0.519 0.476 0.437 0.402 0.507 0.456 0.410 0.370 0.452 0.400 0.354 0.314 0.404 0.351 0.305 0.266 0.361 0.308 0.263 0.225 0.322 0.270 0.227 0.191 0.195 0.162 0.135 0.168 0.137 0.112 0.145 0.116 0.093 0.125 0.099 0.078 0.108 0.084 0.065 0.215 0.149 0.104 0.073 0.146 0.092 0.059 0.038 0.099 0.057 0.033 0.020 0.046 0.022 0.011 0.005 0.335 0.279 0.233 0.194 0.162 0.051 0.037 0.026 0.024 0.016 0.010 0.012 0.007 0.004 0.003 0.001 0.001 Reference Periods 1% Period 1 0.990 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 2% 3% 4% 5% 0.980 0.971 0.962 0.952 0.907 0.980 0.961 0.943 0.925 0.971 0.942 0.915 0.889 0.864 0.961 0.924 0.888 0.855 0.823 0.951 0.906 0.863 0.822 0.784 Present Value of $1 6% 8% 10% 12% 0.943 0.926 0.909 0.893 0.890 0.857 0.826 0.797 0.794 0.751 0.712 0.681 0.621 0.567 0.840 0.792 0.735 0.683 0.636 0.747 0.746 0.705 0.630 0.564 0.711 0.665 0.583 0.513 0.677 0.627 0.540 0.467 0.500 0.424 0.463 0.386 0.429 0.350 0.287 0.237 0.397 0.319 0.257 0.208 0.368 0.290 0.229 0.182 0.340 0.263 0.205 0.160 0.315 0.239 0.183 0.140 0.942 0.888 0.837 0.790 0.933 0.871 0.813 0.760 0.853 0.789 0.731 0.766 0.703 0.645 0.592 0.820 0.744 0.676 0.614 0.558 0.837 0.923 0.914 0.905 Period 11 0.896 0.804 0.722 Period 12 0.887 0.788 0.701 0.625 0.879 0.773 0.681 Period 13 Period 14 0.870 0.758 0.661 0.577 Period 15 0.861 0.743 0.642 0.555 0.650 0.585 0.527 0.557 0.497 0.601 0.530 0.469 0.505 0.442 0.481 0.417 Period 20 0.820 0.673 0.554 0.456 0.377 Period 25 0.780 0.610 0.478 0.375 0.295 Period 30 0.552 0.412 0.308 0.231 0.742 Period 40 0.672 0.453 0.307 0.208 0.142 0.312 0.233 0.174 0.097 14% 16% 18% 20% 0.877 0.862 0.847 0.833 0.743 0.718 0.694 0.769 0.675 0.641 0.609 0.579 0.592 0.552 0.516 0.482 0.519 0.476 0.437 0.402 0.507 0.456 0.410 0.370 0.452 0.400 0.354 0.314 0.404 0.351 0.305 0.266 0.361 0.308 0.263 0.225 0.322 0.270 0.227 0.191 0.195 0.162 0.135 0.168 0.137 0.112 0.145 0.116 0.093 0.125 0.099 0.078 0.108 0.084 0.065 0.215 0.149 0.104 0.073 0.146 0.092 0.059 0.038 0.099 0.057 0.033 0.020 0.046 0.022 0.011 0.005 0.335 0.279 0.233 0.194 0.162 0.051 0.037 0.026 0.024 0.016 0.010 0.012 0.007 0.004 0.003 0.001 0.001 Reference Periods 1% Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 2% 1.000 1.000 1.000 2.010 2.020 2.030 4.060 3.030 3.060 3.091 4.122 4.184 5.204 5.309 5.101 Future Value of Annuity of $1 3% 4% 5% 6% 1.000 1.000 1.000 2.040 2.050 2.060 3.122 3.153 3.184 4.246 4.310 4.375 5.416 5.526 5.637 14% 16% 18% 1.000 1.000 1.000 2.120 2.140 2.160 2.180 3.440 3.506 3.572 4.779 4.921 5.066 6.353 6.610 6.877 6.802 6.975 8.142 8.394 12% 8% 10% 1.000 1.000 1.000 2.080 2.100 3.246 3.310 3.374 4.506 4.641 5.867 6.105 6.152 6.308 6.468 6.633 7.336 7.716 8.115 8.536 8.977 7.214 7.434 7.662 7.898 8.286 8.583 8.892 9.214 14.240 8.923 9.487 10.089 10.730 11.414 9.549 9.897 10.637 11.436 12.300 13.233 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 5.215 7.154 20% 1.000 2.200 3.640 5.368 7.442 9.442 9.930 12.142 12.916 15.327 16.499 19.086 20.799 19.337 21.321 23.521 25.959 42.219 50.818 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 30.850 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 14.947 15.974 17.086 18.292 19.599 | 21.015| 24.215 27.975 32.393 37.581 43.672 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 34.785 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 51.660 60.965 115.380 146.628 186.688 249.214 342.603 471.981 40.568 47.575 28.755 32.150 34.931 39.581 48.497 59.196 72.035 Reference Periods 1% Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 2% 1.000 1.000 1.000 2.010 2.020 2.030 4.060 3.030 3.060 3.091 4.122 4.184 5.204 5.309 5.101 Future Value of Annuity of $1 3% 4% 5% 6% 1.000 1.000 1.000 2.040 2.050 2.060 3.122 3.153 3.184 4.246 4.310 4.375 5.416 5.526 5.637 14% 16% 18% 1.000 1.000 1.000 2.120 2.140 2.160 2.180 3.440 3.506 3.572 4.779 4.921 5.066 6.353 6.610 6.877 6.802 6.975 8.142 8.394 12% 8% 10% 1.000 1.000 1.000 2.080 2.100 3.246 3.310 3.374 4.506 4.641 5.867 6.105 6.152 6.308 6.468 6.633 7.336 7.716 8.115 8.536 8.977 7.214 7.434 7.662 7.898 8.286 8.583 8.892 9.214 14.240 8.923 9.487 10.089 10.730 11.414 9.549 9.897 10.637 11.436 12.300 13.233 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 5.215 7.154 20% 1.000 2.200 3.640 5.368 7.442 9.442 9.930 12.142 12.916 15.327 16.499 19.086 20.799 19.337 21.321 23.521 25.959 42.219 50.818 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 30.850 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 14.947 15.974 17.086 18.292 19.599 | 21.015| 24.215 27.975 32.393 37.581 43.672 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 34.785 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 51.660 60.965 115.380 146.628 186.688 249.214 342.603 471.981 40.568 47.575 28.755 32.150 34.931 39.581 48.497 59.196 72.035 Reference Periods 1% Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 2% 3% 4% 1.010 1.020 1.030 1.040 1.020 1.040 1.061 1.082 1.030 1.061 1.093 1.125 1.041 1.082 1.126 1.170 1.216 1.217 1.276 1.051 1.104 1.159 1.062 1.126 1.194 1.072 1.149 1.230 1.316 1.407 1.083 1.172 1.267 1.369 1.477 1.195 1.305 1.423 1.219 1.344 1.480 1.094 1.105 1.116 1.127 1.138 1.149 1.161 Future Value of $1 5% 8% 10% 12% 14% 16% 18% 1.140 1.160 1.180 1.300 1.346 1.392 6% 1.050 1.060 1.080 1.100 1.120 1.103 1.124 1.166 1.210 1.254 1.158 1.191 1.260 1.331 1.405 1.482 1.262 1.360 1.464 1.574 1.689 1.811 1.338 1.469 1.611 1.561 1.643 1.939 1.762 1.925 2.100 2.288 1.220 1.486 1.282 1.641 1.348 1.811 1.489 2.208 1.265 1.340 1.419 1.587 1.772 1.504 1.714 1.949 1.594 1.851 2.144 1.551 1.689 1.999 1.629 1.791 2.159 1.806 2.191 2.094 2.666 2.427 3.243 3.262 4.801 1.974 2.195 2.436 2.211 2.502 2.826 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 1.294 1.469 1.665 1.886 2.133 2.720 3.452 1.732 1.980 2.261 2.937 3.797 1.558 1.801 2.079 2.397 3.172 4.177 5.474 1.319 1.513 1.346 2.653 3.386 4.322 7.040 2.700 2.986 3.185 3.583 4.300 2.853 3.278 3.759 3.803 4.435 5.160 4.411 5.234 6.192 3.252 3.707 4.226 5.117 6.176 7.430 4.818 5.936 7.288 8.916 4.363 5.492 6.886 8.599 10.699 12.839 4.887 6.261 7.988 10.147 7.138 9.266 11.974 15.407 2.476 2.358 2.773 2.594 3.106 20% 1.200 1.440 1.728 2.074 2.488 3.207 4.661 13.743 19.461 27.393 38.338 6.727 9.646 6.848 10.835 17.000 4.292 26.462 40.874 62.669 95.396 10.063 17.449 29.960 50.950 85.850 143.371 237.376 5.743 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 Reference Periods 1% Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 2% 3% 4% 1.010 1.020 1.030 1.040 1.020 1.040 1.061 1.082 1.030 1.061 1.093 1.125 1.041 1.082 1.126 1.170 1.216 1.217 1.276 1.051 1.104 1.159 1.062 1.126 1.194 1.072 1.149 1.230 1.316 1.407 1.083 1.172 1.267 1.369 1.477 1.195 1.305 1.423 1.219 1.344 1.480 1.094 1.105 1.116 1.127 1.138 1.149 1.161 Future Value of $1 5% 8% 10% 12% 14% 16% 18% 1.140 1.160 1.180 1.300 1.346 1.392 6% 1.050 1.060 1.080 1.100 1.120 1.103 1.124 1.166 1.210 1.254 1.158 1.191 1.260 1.331 1.405 1.482 1.262 1.360 1.464 1.574 1.689 1.811 1.338 1.469 1.611 1.561 1.643 1.939 1.762 1.925 2.100 2.288 1.220 1.486 1.282 1.641 1.348 1.811 1.489 2.208 1.265 1.340 1.419 1.587 1.772 1.504 1.714 1.949 1.594 1.851 2.144 1.551 1.689 1.999 1.629 1.791 2.159 1.806 2.191 2.094 2.666 2.427 3.243 3.262 4.801 1.974 2.195 2.436 2.211 2.502 2.826 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 1.294 1.469 1.665 1.886 2.133 2.720 3.452 1.732 1.980 2.261 2.937 3.797 1.558 1.801 2.079 2.397 3.172 4.177 5.474 1.319 1.513 1.346 2.653 3.386 4.322 7.040 2.700 2.986 3.185 3.583 4.300 2.853 3.278 3.759 3.803 4.435 5.160 4.411 5.234 6.192 3.252 3.707 4.226 5.117 6.176 7.430 4.818 5.936 7.288 8.916 4.363 5.492 6.886 8.599 10.699 12.839 4.887 6.261 7.988 10.147 7.138 9.266 11.974 15.407 2.476 2.358 2.773 2.594 3.106 20% 1.200 1.440 1.728 2.074 2.488 3.207 4.661 13.743 19.461 27.393 38.338 6.727 9.646 6.848 10.835 17.000 4.292 26.462 40.874 62.669 95.396 10.063 17.449 29.960 50.950 85.850 143.371 237.376 5.743 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 Requirements 1. What is the project's NPV? Is the investment attractive? Why or why not? 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not? Requirements 1. What is the project's NPV? Is the investment attractive? Why or why not? 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not?
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Format the ratios as fixed or percent with the appropriate number of decimals. To get you started on the first ratio (Return on Investment, net income is calculated as the sum of the revenue and...
-
Consider how Wolf Valley, a popular ski resort, could use capital budgeting to decide whether the $8 million Brook Park Lodge expansion would be a good investment. Assume that Wolf Valley's managers...
-
Refer to the Wolf Valley Data Set in E12-34A. Data in E12-34A. Consider how Wolf Valley, a popular ski resort, could use capital budgeting to decide whether the $8 million Brook Park Lodge expansion...
-
In Simpleland, there are only two risky assets in the market, A and B. The information and CAPM estimates of A and B are shown in the following table: A 100 Million 0.09 Market Capitalisation ($)...
-
The chapter discussed four inventory costing methods. List the four methods and briefly explain each.
-
Find the length of the astroid x 2/3 + y 2/3 = 1. y 1 x3 + y = 1 2/3 -1
-
A process in which pressure remains constant is called (a) Isochoric process (b) Isobaric process (c) Isothermal process (d) Adiabatic process.
-
After analyzing the costs of various options for obtaining brackets, Ross White (see Problems 6-25, 6-26, and 6-27) recognizes that although he knows that lead time is 2 days and demand per day...
-
Brennan's Bakery purchases Celeste's Cookies. Celeste's Cookies has assets of $ 1 2 1 million and liabilities for $ 6 3 million. Brennan records Goodwill of $ 3 7 million related to the purchase. How...
-
When faced with different alternatives, there are many criteria that can be used to identify the best one. What is the tangible criterion that is usually used in an engineering economic analysis?
-
You decide to buy a home for $100,000. You approach two banks for financing. Bank 1 requires a 10 percent down payment and requires monthly payments on a 20-year mortgage sufficient to earn it an...
-
24-year-old Mariana single parent and her 5-year-old daughter, Gabriela. Income: 35,000 Expenses: 16,000 total (Annual rent: 16,000; car: 7500; credit cards: 6,000 making min. paymnts only) emergency...
-
In the situation below, a ball of mass 4kg is moving down a ramp. If at the point illustrated in the diagram, the ball has PE-32J and KE=50J, what is the speed the ball has?
-
Students may wish to refer to the chapters on the introduction to the revenue cycle and patient encounter and billing information in this workbook for a review of math for the following problems. 1....
-
The following questions relate to the coupon and par bond described above (a) Is the bond price ofthis coupon bond ever below the price of the par bond? Explain youranswer (b.) What happens to the...
-
1. A supernet has a first address of 205.17.64.0 and a supernet mask of 255.255.224.0. a. How many blocks are in this supernet and what is the range of addresses of each block? (15 points) b. A...
-
The Angie Manufacturing Company makes one model of a product known as Brand A. On January 1, 2018, there was 500 units of the finished product which were included in the finished goods inven- tory....
-
Explain the regulation of the secretions of the small intestine.
-
Refer to the data in E11-43B. Data in E11-43B. Dock Guard, which uses a standard cost accounting system, manufactured 230,000 boat fenders during the year, using 1,660,000 feet of extruded vinyl...
-
The following is a sample of a worksheet in Excel. To complete this exercise, download the Excel file from MyLab Accounting. Requirements Perform the following tasks in the Excel worksheet you...
-
Describe the capital budgeting process in your own words.
-
Sandblasting is a process in which an abrasive material, entrained in a jet, is directed onto the surface of a casting to clean its surface. In a particular setup for sandblasting, the casting of...
-
\(f(t)=\delta(t-\tau)\) corresponds to a force applied at a. \(t-\tau=0\) b. \(t-\tau <0\) c. \(t-\tau>0\)
-
Find the response of a viscously damped system under the periodic force whose values are given in Problem 1.116. Assume that \(M_{t}\) denotes the value of the force in newtons at time \(t_{i}\)...
Study smarter with the SolutionInn App