0 , 0 of 20 pts 12 10 (book static) Question Help Noodsy Music is considering investing $625,000 in private lesson studios that will have no residual value The studios are expected to result in annual net cash inflows of $90,000 per year for the next nine years Assuming that Woodsy Music uses an 8 hurdle rate, what is the net present value (NPV) of the studio investment Is this a favorable investment (Click the icon to view the present value of an annuity table ) (Click the icon to view the present value table ) (Click the icon to view the future value of an annuity table ) Click the icon to view the future value table ) (Round your answer to the nearest whole dollar Use parentheses or a minus sign for a negative net present value ) The net prosent value of the studio investment is Enter any number in the edit fields and then click Check Answer CA 1 par remaining 21 MacBook Pro 4 01 complete Reference Present Value of Annuity of $1 Periods 1 2 3 4 5 6 8 10 12 14 16 18 20 Period 1 0 990 0 980 0 971 0 962 0 952 0 943 0 926 0 909 0 893 0 877 0 862 0 847 0 833 Period 2 1 9701 942 1 913 1 8861 859 1 833 1 783 1 736 1 690 1 647 1 605 1 566 1 528 Period 3 2 9412 884 2 829 2 775 2 723 2 673 2,577 2 487 2402 2322 2246 2 174 2 106 Period 43 902 3 808 3 717 3 630 3 546 3 465 3 312 3 170 3 037 2 914 2 798 2 690 2 589 Period 5 4 853 4 713 4 580 4 452 4 3294212 3 993 3 791 3 605 3 433 3 274 3 127 2 991 Periods 5 795 5 601 5 417 5 242 5 0784917 4 623 4 355 4 111 3 8893 685 3 498 3 326 Period 7 6 728 6 472 6 230 6 002 5 786 5 582 5 206 4 868 4 564 4 288 4 039 3 812 3 605 Period 87 652 7,325 7 020 6 733 6 463 6 210 5 747 5 335 4 968 4 639 4 344 4 078 3 837 Period 98 566 8 1627 786 7 435 7 108 6 8026 247 5 759 5 328 4 946 4 607 4303 4 031 Period 10 9 471 8 983 8 530 8 1117 722 7 360 6 710 6 145 5 6505 216 4 833 4 494 4 192 Period 11 10,368 9 7879 253 8 760 8 3067 887 7 139 6 495 5 938 5 453 5 029 4 656 4 327 Period 12 11 255 10 575 9 954 9 385 8863 83847536 6 8146 194 5 660 5 197 4 793 4 439 Period 13 12 134 11 348 10636 9986 9 394 8 853 7904 7 103 6 424 5 842 5,342 Period 14 13 004 12 106 11,296 10 563 9 809 9 295 8 24473676 628 4 910 4 533 8 002 5 468 Period 15 13 885 12 840 11 938 11 11810 3809 712 855976066 811 5 008 4 611 6 142 5575 5 092 4 675 Period 20 18 046 16 351 14877 13 5901246211 470 9 818 8 51474696 623 5 929 Period 25 22 023 195231741315622 14 094 12783106759 077 7 8436 873 5353 4 870 Period 30 25 800 22396 19 800 17 250 15 372 13 765 112589427 8 056 7 003 6,097 5 467 4 948 Period 40 32 8352736523 115 19 793 17 150 15 045 11 259 7798 244 6 177 5517 4979 7 1055 233 5 549 4 997 Print Done G A Check Answer tv MacBook Pro DO 000 000 II A 3 4 5 6 7 8 ( 9 ) 0 Chapter 12 HomeWork 1 4 of 10 (0 complete) HW SC atic) Q Reference Future Value of Annuity of $1 Periods 1 2 3 5 6 8 10 12 14 16 18 20 Period 1 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000 Period 2 2010 2 020 2030 2 040 2 050 2 060 2080 2 100 2 120 2 140 2 160 2 180 2 200 Period 3 3 030 3 0603 091 3 122 3 153 3 184 3246 3 310 3 374 3 440 3 506 3 572 3 640 Period 4 4 060 4 122 4 184 4 246 4310 4 375 4 506 4 641 4 779 4 921 5 066 5215 5 368 Period 5 5 101 5 2045 30954165 526 5 637 5 867 6 105 6 353 6 610 6 877 7 154 7 442 Period 6 1526,308 8 468 8 633 6 802 6 975 7 336 7 716 8 115 8 536 8 977 9 442 9 930 Period 7 7 214743475627898 B 142 8 394 8 923 9 487 10 089 10 730 11 414 12 142 12 916 Period 8 286 8 583 8 892 9214 9 549 9 897 10 6371143612 300 13 233 Periods 14 240 15327 16 499 9 369 9 755 10150 10 583 11 027 11491 1248813579 14 778 16 085 17 519 19 086 Period 10 10 462 10 950 11464 12000 12 578 13 181 14 48715 93717 549 20 799 19 337 21321 23 521 25 959 Period 11 11 567 12 18012808 13 456 14207 14 972 16 545 18 531 20656 Period 12 12 583 13 412 14 192 15 026 15917 16 870 18 977 21 384 24 133 23 045 25 733 28 755 32 150 Period 13 13800 14 580 15618 18 627 17 713 18882 21 495 24 523 28 029 27 271 30 850 34 931 39 581 Period 14 14947 15 974 1706 18 2929 590 2101524215 27 975 32393 32080 36 788 42219 48 497 Period 15 15 097 17250 18 500 20 024 2157923275 27152 31 772 37250 37581 43672 50 818 99 198 43 842 51 660 Period 20 22 019 24 257 25 6702977833 0963676 45 762 S727572052 60 965 72035 Period 25 20263903036459 41 64547727 54 5 73 105 98 347 133 330181871249214 91025 115 380 145 628 186 588 Pulod 30 45 46 475755606479058 11320016449424130356 757530312 342 600 471981 Period 40 4160 42 75 4915600 120 100 154752 258442 93767 000 1 342 025 2 360 7574193 2137 343 858 790 948 1181882 Pri Done CA Check Answer 21 dtv 4 MacBook Pro 80 ooo II $ A 3 4 5 6 G 7 8 ( 9 ) 0 4 of 10 ( complete) HW SCH atic) Qu i Reference 1 030 Fofure Value of 51 Periods 1 2 3 4 5 6 8 10 12 14 16 18 20 Period 1 1 010 1 020 1 030 1 040 1 050 1 0601,080 1 100 1 120 1140 1 160 1 180 1 200 Period 2 1 020 1 040 1,061 1,082 1 103 1 124 1 166 1210 1 254 1,300 1 346 1 392 1 440 Period 3 1 061 1 093 1 125 1 158 1 191 1 260 1 331 1 405 1482 1 561 1 643 1 728 Period 4 1 041 1 082 1 126 1 170 1 216 1 262 1 360 1464 1 574 1 689 1,811 1 939 2074 Period 5 1 051 1 104 1 159 12171276 1 338 1 469 1 611 1762 1925 2 100 2288 2 489 Period 6 1 062 1 126 1 194 1 265 1 340 1 419 1 587 1 772 1 974 2195 2436 2 700 2986 Period 7 1 072 1 149 1230 1 316 1407 1504 1 714 1 949 2211 2502 2825 3 185 3 583 Period 8 1 172 1 267 1 389 1477 1 594 1 851 2144 2 476 2 853 3 278 3 759 4 300 Period 9 1094 1 195 1 305 1423 1 551 1 689 1 9992358 2 773 3 252 3 803 4,435 5 160 Period 10 1 105 1 219 1 344 1 480 1 629 1 791 2 159 2594 3 106 3 707 5 234 6 192 Period 11 1 116 1243 1384 1 539 1 710 1 898 2332 2853 3 479 4220 5 117 6 176 7430 1 127 1 268 Period 12 1 426 1601 1 796 3896 2 5183 138 4819 5 936 7 288 8 916 Period 13 1 138 1 294 1469 1 665 1 886 2 133 27203452 4 363 54526 686 8 599 10 699 1 149 1 319 Period 14 1513 1742 1 960 2261 2937 3797 4887 7988 6261 12839 10 147 Period 15 1 161 1 346 1558 1801 2079 2397 3 172 4 177 5474 7 138 3266 1974 15 407 Period 20 1220 1486 1 806 2 191 2653 3 207 4661 6 727 9 646 13 74319 451 27 393 38338 Period 25 1282 2094 2 666 338642126 848 10 835 17 000 26 462 40 462 000 95 396 Period 30 5348 1811 24273243 4 3226743 10 063 17 4492996050 950 85 850 103371 237376 Period 40 1489 2208 3262 4 801 7 040 10 25 21 725 45 259 3 0511884378 721750378 1469772 1,083 2012 Print Done berin Check Answer Clear ma tv 3 21 MacBook Pro Il ODD 000 A 23 7 8 9 6 3 4 5

Question

0 , 0 of 20 pts 12 10 (book static) Question Help Noodsy Music is considering investing $625,000 in private lesson studios that will have no residual value  The studios are expected to result in annual net cash inflows of $90,000 per year for the next nine years  Assuming that Woodsy Music uses an 8  hurdle rate, what is the net present value (NPV) of the studio investment  Is this a favorable investment  (Click the icon to view the present value of an annuity table ) (Click the icon to view the present value table ) (Click the icon to view the future value of an annuity table ) Click the icon to view the future value table ) (Round your answer to the nearest whole dollar  Use parentheses or a minus sign for a negative net present value ) The net prosent value of the studio investment is Enter any number in the edit fields and then click Check Answer CA 1 par remaining 21 MacBook Pro 4 01 complete Reference Present Value of Annuity of $1 Periods 1  2  3  4  5  6  8  10  12  14  16  18  20  Period 1 0 990 0 980 0 971 0 962 0 952 0 943 0 926 0 909 0 893 0 877 0 862 0 847 0 833 Period 2 1 9701 942 1 913 1 8861 859 1 833 1 783 1 736 1 690 1 647 1 605 1 566 1 528 Period 3 2 9412 884 2 829 2 775 2 723 2 673 2,577 2 487 2402 2322 2246 2 174 2 106 Period 43 902 3 808 3 717 3 630 3 546 3 465 3 312 3 170 3 037 2 914 2 798 2 690 2 589 Period 5 4 853 4 713 4 580 4 452 4 3294212 3 993 3 791 3 605 3 433 3 274 3 127 2 991 Periods 5 795 5 601 5 417 5 242 5 0784917 4 623 4 355 4 111 3 8893 685 3 498 3 326 Period 7 6 728 6 472 6 230 6 002 5 786 5 582 5 206 4 868 4 564 4 288 4 039 3 812 3 605 Period 87 652 7,325 7 020 6 733 6 463 6 210 5 747 5 335 4 968 4 639 4 344 4 078 3 837 Period 98 566 8 1627 786 7 435 7 108 6 8026 247 5 759 5 328 4 946 4 607 4303 4 031 Period 10 9 471 8 983 8 530 8 1117 722 7 360 6 710 6 145 5 6505 216 4 833 4 494 4 192 Period 11 10,368 9 7879 253 8 760 8 3067 887 7 139 6 495 5 938 5 453 5 029 4 656 4 327 Period 12 11 255 10 575 9 954 9 385 8863 83847536 6 8146 194 5 660 5 197 4 793 4 439 Period 13 12 134 11 348 10636 9986 9 394 8 853 7904 7 103 6 424 5 842 5,342 Period 14 13 004 12 106 11,296 10 563 9 809 9 295 8 24473676 628 4 910 4 533 8 002 5 468 Period 15 13 885 12 840 11 938 11 11810 3809 712 855976066 811 5 008 4 611 6 142 5575 5 092 4 675 Period 20 18 046 16 351 14877 13 5901246211 470 9 818 8 51474696 623 5 929 Period 25 22 023 195231741315622 14 094 12783106759 077 7 8436 873 5353 4 870 Period 30 25 800 22396 19 800 17 250 15 372 13 765 112589427 8 056 7 003 6,097 5 467 4 948 Period 40 32 8352736523 115 19 793 17 150 15 045 11 259 7798 244 6 177 5517 4979 7 1055 233 5 549 4 997 Print Done G A Check Answer tv MacBook Pro DO 000 000 II A 3   4 5 6 7 8 ( 9 ) 0 Chapter 12   HomeWork 1 4 of 10 (0 complete) HW SC atic) Q Reference Future Value of Annuity of $1 Periods 1  2  3  5  6  8  10  12  14  16  18  20  Period 1 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000 1 000 Period 2 2010 2 020 2030 2 040 2 050 2 060 2080 2 100 2 120 2 140 2 160 2 180 2 200 Period 3 3 030 3 0603 091 3 122 3 153 3 184 3246 3 310 3 374 3 440 3 506 3 572 3 640 Period 4 4 060 4 122 4 184 4 246 4310 4 375 4 506 4 641 4 779 4 921 5 066 5215 5 368 Period 5 5 101 5 2045 30954165 526 5 637 5 867 6 105 6 353 6 610 6 877 7 154 7 442 Period 6 1526,308 8 468 8 633 6 802 6 975 7 336 7 716 8 115 8 536 8 977 9 442 9 930 Period 7 7 214743475627898 B 142 8 394 8 923 9 487 10 089 10 730 11 414 12 142 12 916 Period 8 286 8 583 8 892 9214 9 549 9 897 10 6371143612 300 13 233 Periods 14 240 15327 16 499 9 369 9 755 10150 10 583 11 027 11491 1248813579 14 778 16 085 17 519 19 086 Period 10 10 462 10 950 11464 12000 12 578 13 181 14 48715 93717 549 20 799 19 337 21321 23 521 25 959 Period 11 11 567 12 18012808 13 456 14207 14 972 16 545 18 531 20656 Period 12 12 583 13 412 14 192 15 026 15917 16 870 18 977 21 384 24 133 23 045 25 733 28 755 32 150 Period 13 13800 14 580 15618 18 627 17 713 18882 21 495 24 523 28 029 27 271 30 850 34 931 39 581 Period 14 14947 15 974 1706 18 2929 590 2101524215 27 975 32393 32080 36 788 42219 48 497 Period 15 15 097 17250 18 500 20 024 2157923275 27152 31 772 37250 37581 43672 50 818 99 198 43 842 51 660 Period 20 22 019 24 257 25 6702977833 0963676 45 762 S727572052 60 965 72035 Period 25 20263903036459 41 64547727 54 5 73 105 98 347 133 330181871249214 91025 115 380 145 628 186 588 Pulod 30 45 46 475755606479058 11320016449424130356 757530312 342 600 471981 Period 40 4160 42 75 4915600 120 100 154752 258442 93767 000 1 342 025 2 360 7574193 2137 343 858 790 948 1181882 Pri Done CA Check Answer 21 dtv 4 MacBook Pro 80 ooo II $ A 3   4 5 6 G 7 8 ( 9 ) 0 4 of 10 ( complete) HW SCH atic) Qu i Reference 1 030 Fofure Value of 51 Periods 1  2  3  4  5  6  8  10  12  14  16  18  20  Period 1 1 010 1 020 1 030 1 040 1 050 1 0601,080 1 100 1 120 1140 1 160 1 180 1 200 Period 2 1 020 1 040 1,061 1,082 1 103 1 124 1 166 1210 1 254 1,300 1 346 1 392 1 440 Period 3 1 061 1 093 1 125 1 158 1 191 1 260 1 331 1 405 1482 1 561 1 643 1 728 Period 4 1 041 1 082 1 126 1 170 1 216 1 262 1 360 1464 1 574 1 689 1,811 1 939 2074 Period 5 1 051 1 104 1 159 12171276 1 338 1 469 1 611 1762 1925 2 100 2288 2 489 Period 6 1 062 1 126 1 194 1 265 1 340 1 419 1 587 1 772 1 974 2195 2436 2 700 2986 Period 7 1 072 1 149 1230 1 316 1407 1504 1 714 1 949 2211 2502 2825 3 185 3 583 Period 8 1 172 1 267 1 389 1477 1 594 1 851 2144 2 476 2 853 3 278 3 759 4 300 Period 9 1094 1 195 1 305 1423 1 551 1 689 1 9992358 2 773 3 252 3 803 4,435 5 160 Period 10 1 105 1 219 1 344 1 480 1 629 1 791 2 159 2594 3 106 3 707 5 234 6 192 Period 11 1 116 1243 1384 1 539 1 710 1 898 2332 2853 3 479 4220 5 117 6 176 7430 1 127 1 268 Period 12 1 426 1601 1 796 3896 2 5183 138 4819 5 936 7 288 8 916 Period 13 1 138 1 294 1469 1 665 1 886 2 133 27203452 4 363 54526 686 8 599 10 699 1 149 1 319 Period 14 1513 1742 1 960 2261 2937 3797 4887 7988 6261 12839 10 147 Period 15 1 161 1 346 1558 1801 2079 2397 3 172 4 177 5474 7 138 3266 1974 15 407 Period 20 1220 1486 1 806 2 191 2653 3 207 4661 6 727 9 646 13 74319 451 27 393 38338 Period 25 1282 2094 2 666 338642126 848 10 835 17 000 26 462 40 462 000 95 396 Period 30 5348 1811 24273243 4 3226743 10 063 17 4492996050 950 85 850 103371 237376 Period 40 1489 2208 3262 4 801 7 040 10 25 21 725 45 259 3 0511884378 721750378 1469772 1,083 2012 Print Done berin Check Answer Clear ma tv 3  21 MacBook Pro Il ODD 000 A     23 7 8 9 6 3 4 5

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0%, 0 of 20 pts 12-10 (book/static) Question Help Noodsy Music is considering investing $625,000 in private lesson studios that will have no residual value.

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