Ursus, Inc., is considering a project that would have a five-year life and would require a $667,000 investment in equipment. At the end of five years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows (Ignore income taxes.): Sales Variable expenses Contribution margin Fixed expenses: Fixed out-of-pocket cash expenses Depreciation Net operating income $1,800,000 1,250,000 550,000 $320,000 133,400 453,400 96,600 $ Click here to view Exhibit 138-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 14%. Required: a. Compute the project's net present value. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) b. Compute the project's internal rate of return. (Round your final answer to the nearest whole percent.) c. Compute the project's payback period. (Round your answer to 2 decimal place.) d. Compute the project's simple rate of return. (Round your final answer to the nearest whole percent.) a. Net present value b. Internal rate of return c. Payback period d. Simple rate of return % years % Periods 4% 5% 6% 7% 8% 99 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 1 23% 24% 25% 0.962 0.952 0.943 0935 0.926 0917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0813 0.806 0.800 2. 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0650 0640 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 4 0.855 0.823 0.792 0763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0482 0467 0.451 0.437 0.423 0410 5 0.822 0784 0.747 0.713 0.681 0.650 0621 0.503 0.567 0543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.385 0 370 0.355 0.341 0.328 6 0.750 0.746 0.705 0666 0.630 0.596 0.564 0.535 0.507 0.480 0456 0.432 0.410 0.390 0.370 0.352 0.335 0319 0.303 0.289 0.275 0.262 7 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0482 0.452 0.425 0.400 0.375 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 8 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0351 0.327 0.305 0.285 0 266 0249 0.233 0.218 0.2040191 0.179 0.168 9 0.703 0.545 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0333 0.308 0.284 0.263 0243 0225 0 209 0.194 0.180 0.167 0155 0.144 0.134 10 0.676 0.614 0.558 0.508 0463 0.422 0.306 0.352 0.322 0.295 0.270 0247 0227 0.208 0.191 0.176 0.162 0.149 0.137 0.125 0.116 0.107 11 0.650 0585 0.527 0.475 0.429 0.388 0.350 0317 0.287 0 261 0.237 0215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.005 12 0625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 13 0601 0530 0.469 0.415 0.368 0.326 0 290 0.258 0229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0061 0055 14 0.577 008 0.442 0.388 0.340 0.299 0.263 0232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.008 0.078 0060 0.062 0055 0.049 0044 15 0555 0.481 0.417 0.362 0.315 0 275 0.250 0.200 0.183 0.160 0.140 0.123 0.108 0.005 0.084 0.074 0.065 0.057 0.051 0.045 0040 0.035 16 0.534 0.45 0.394 0.33 0.292 0252 0218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.052 0054 0.047 0042 0036 0.032 0.028 17 0.513 0.436 0.371 0.317 0.270 0.231 0.190 0.170 0 146 0.125 0.108 0.093 0.060 0.000 0.060 0052 0.045 0039 0034 0030 0.025 0.023 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0111 0.005 0.081 0.069 0.059 0051 0044 003 0032 0.020 0.024 0.021 0.018 19 0.475 0.396 0.331 0.277 0.232 0.194 0 164 0.18 0.116 0098 0083 0.070 0.060 0.051 0.043 0.037 0031 0027 0023 0.020 0.017 0.014 20 0.456 0.377 0.312 0.250 0.215 0.178 0.140 0124 0104 0.007 0.073 0061 0.051 0.043 0037 0031 0026 0022 0010 0.016 0.014 0.012 21 0.439 0.359 0.204 0 242 0199 0.164 0.135 0.112 0.003 0.077 0064 0.053 0.014 0.037 0031 0026 0022 0.018 0015 0.013 2011 0.009 22 0.422 0342 0.278 0.226 0.184 0.150 0.123 0.101 0063 0068 0056 0.046 003 0032 0.025 0.022 0010 0015 0013 0011 0000 000 23 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.001 0074 0060 0.049 0.040 0.033 0027 0.022 0018 0015 0012 0.010 0.000 0.007 2006 24 0.390 0.310 0.247 0.197 0.158 0.125 0.102 0002 0066 0063 0043 0.035 0.028 0.033 0010 0015 0.013 0.010 0.008 0.007 0.005 0005 25 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0074 0059 0.047 0.038 0.030 0024 0.020 2016 0013 0010 0.000 0.007 0.000 0.00 0.004 26 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0053 0.042 0.033 0.026 0.021 0017 0014 0011 0.000 0.007 0.006 0.005 0004 0.003 27 0.347 0.268 0.207 0.161 0.125 0.008 0.076 0060 0047 0.037 0.029 0023 0.018 0.014 0011 0.000 0.007 0.005 0.005 0.004 0.003 0.002 28 0.333 0 255 0.196 0.150 0.116 0.000 0.06 0.054 0.042 0.033 0.026 0.020 0.016 0012 0010 0.008 0.006 0.005 0004 0.003 0.002 0.002 20 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0048 0037 0.025 0.022 0.017 0014 0011 0008 0.006 0005 0.004 0000 0002 0.002 0.002 30 0.308 0.231 0.174 0.131 0.01 0.075 0057 0044 0033 0.026 0.020 0,015 0,012 0009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0.208 0.142 0.007 0.067 0.046 0.032 0.022 0015 0,011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 40 EXHIBIT 13B-2 Present Value of an Annuity of SinArrears Periods 4% 5% 6% 7% 99 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2. 1.886 1.859 1.833 1.808 1.783 1759 1736 1.713 1.690 1668 1.647 1626 1.605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1440 3 2.775 2.723 2.673 2.624 2.577 2.531 2487 2.444 2.402 2361 2.322 2283 2.246 2210 2.174 2.140 2.106 2074 2042 2011 1.981 1952 4 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2914 2855 2.798 2743 2.690 2.639 2589 2.540 2.494 2.448 2.404 2362 5 4.452 4.329 4212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3352 3.274 3.199 3.127 3.058 2.991 2926 2864 2803 2.745 2689 6 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4 231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 7 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.70G 3.605 3.508 3.416 3.327 3.242 3.161 B 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 9 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 10 8.111 7.722 7.360 7.024 6710 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3571 11 8.760 8.306 7887 7.499 7.139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3656 12 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 13 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4 203 4.053 3.912 2.780 14 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6,628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3824 15 11.118 10.280 9.712 9.108 8.559 8.061 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4.489 4 315 4.153 4001 3.859 16 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 6.974 6,604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 437 4.189 4.033 3.887 17 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5222 4.990 4.775 4576 434 4.219 4,059 3.910 18 12.659 11.690 10.028 10.059 9372 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5534 5.273 5033 4812 4.608 4.419 4.243 4.080 3.928 19 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5,070 4.843 4.635 4.442 4.263 4,097 3.942 20 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7.469 7.025 6.623 6.259 5929 5628 5.353 5.101 4.870 4657 4.460 4.279 4.110 3.954 21 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7.562 7.102 6.687 6.312 5.973 5665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 22 14.451 13.163 12.042 11.061 10 201 9.442 8.772 8.176 7.645 7.170 6.743 6.359 6011 5.696 5410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 23 14.857 13.489 12 303 11.272 10.371 9.580 8.883 8.266 7.718 7.230 6.792 6.399 6,044 5723 5.432 5.167 4.925 4.703 4.499 4.311 4.137 3.976 24 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7.784 7283 6.835 6434 6073 5.746 5 451 5.182 4.937 4.713 4.507 4.318 4.143 3.981 25 15.622 14.094 12.783 11.654 10.675 9.8239.077 8.422 7.843 7330 6.873 6.464 6097 5.766 5.467 5.195 4.948 4.721 4.514 4.323 4.147 3985 26 15.983 14.375 13.003 11.026 10.810 9.929 9.161 8.488 7.896 7.372 6.906 6491 6.118 5.783 5.480 5.206 4.956 4.728 4.520 4.328 4.151 3.988 27 16.330 14643 13.211 11.987 10935 10.027 9.237 8.548 7.943 7.409 6 935 6514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4332 4.154 3.990 28 16.663 14 898 13.406 12.137 11051 10.116 9.307 8.602 7.984 7.441 6961 6.534 6.152 5810 5.502 5 223 4.970 4.739 4528 4 335 4.157 3.992 29 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4531 4.337 4.159 3.994 30 17.292 15.372 13.765 12 409 11258 10.274 9.427 8.694 8055 7 496 7.003 6 566 6.177 5.629 5.517 5.235 4.979 4.745 4.534 4339 4.160 3.995 40 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8 244 7634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4 760 4544 4.347 4.166 3.999