3. (16) The French energy company Total SA announced yesterday that they were purchasing land and equipment for $1 billion to build additional wind farms and that they expected a 10% retum on that investment in the years ahead. Suppose they sell all of that land and equipment 10 years from now to another company for the same $1 billion cost, and each year 1 - 10 they earn a profit (revenue minus expenses) of $120 million. Which of the following annual interest rates most closely results in this investment having a PW=0? a 8% b. 10% c. 12% d. 14% e. 16% You must show the PW equation that you used to find your answer, not simply your answer. TABLE C-1 Single Payment Compound Present Amount Worth Factor Factor To Find F To Find P Given P Given F Fle PF 1.0025 29975 10080 09950 1003 09125 10100 0.9201 5 10126 0.9876 1 0151 09851 7 1 0176 09827 8 10202 0.9802 10227 09778 10 10253 0.9753 11 10278 0.9729 12 10304 09005 10330 0.9681 14 10356 0.9656 15 10382 0.9632 16 10208 9608 17 10434 0.9684 10460 09501 19 10456 0.9537 10512 0.9513 21 10535 0.9489 10565 0.9666 1.0591 0.942 18618 0.9418 1.0614 0.9395 18778 1978 36 1.0941 0.9140 40 1.1060 0.9150 +8 1 1273 11616 00 72 1 1969 0.2355 54 12334 08108 10 12836 Compound Amount Factor To Find F Given A FIA 1.0000 20005 3005 40150 50251 60306 70577 80204 9046 101133 11.1385 12 1664 13.1968 14.2298 152354 16.3035 17.943 18.3876 19.4336 20.4822 215334 22.5872 23.6137 24.128 25.7646 31.1133 37.6206 420132 51.9312 3-67 78.7794 3341 113.45 13 Uniform Series Present Sinking Worth Fund Factor Factor To FindP To Find A Given A Given F PA AF 0.975 10000 1.9925 0.49944 2.9851 0.3325 3.5751 0.2491 0.1990 5.908 0.16% 6.9303 0.1418 7.9107 0.1239 8.8885 0.1100 9.639 Ch89 10.83 Qo89 11 83 0.0622 127753 0075 13.7410 0.000 14.7042 0.0553 15.6650 063) 16.6235 0.0577 1725795 0.05# 18.5332 0.0515 19.4845 00488 2014334 010461 21-350 00443 223241 0-1425 23.26 0405 24 255 0388 28 8079 0.0823 34.5 38 0199 38 45.178 0.019 556534 0155 2012 7583 Capital Recovery Factor To Find A Given P AIP 10025 0.3019 0.3330 0.2516 0.2015 0.1681 0.143 0.1264 0.1125 0.1014 0.0923 CONG 0.0083 23 0.0680 0.0638 00600 0.0569 0.05-0 0.0513 00489 Brugmi FIFT F Flmha MF 0.0448 0.0430 00413 3-4 0.1291 0.0263 1221 001 0.0132 0132 0.0113 Compound Amount Factor To Find F Glven A FA 1.00 20600 3.1836 43746 TABLE C-9 DSC Compound Single Payment Compound Present Amount Worth Factor Factor To Find F To Find P Given P Glen F F/P PF 1.ONDO 0.9134 1.1236 0.8900 1.1910 0.8396 1.2125 0.7921 1.3882 0.7473 1.4185 0.7050 1.5036 0.6651 1.5938 0.6274 9 1.6895 0.9919 10 1.7208 0.584 11 1.8983 0.5268 12 2.0122 0.1970 13 2.129 0.6688 14 2.2609 0403 15 23466 0.4173 16 2.5004 0.3936 17 2.628 0314 18 28543 03803 19 3.0256 21 3.2071 0.3118 21 3336 0.2942 30035 02775 3.8197 0318 24 4.09 02170 4.2919 5.735 01711 011 002 45 1176 27 184202 Uniform Series Present Sinking Worth Fund Factor Factor To Find P To Find A Given A Given F PA AF 09434 1.0000 18334 0.4854 26730 0.3141 34651 0.2286 42124 0.1774 49173 0.1434 5.5804 0.1191 6.2008 0.1010 6.8017 0.0820 73601 0.0799 7.8869 0.0668 0.0593 8807 0.0530 0.0476 97122 00430 10.1009 0.0090 10.4773 0.0354 108276 0.0024 11.1581 0.0296 11.4699 00272 11.26-41 One 50 120416 0030 12 2034 12.54 00197 127634 00182 1376 0012 14.4962 090 15063 006 69753 3938 9.8975 11.1913 13.1808 14.9716 16 18 21 21.0151 23 2760 25.625 28 2129 30905 33.7600 36.78 399927 23 1995 SOS Capital Recovery Factor To Find A Given P A/P 1.0600 0.5454 0.3741 0.2886 0.2374 0.2014 0.1791 0.16 10 0.1420 0.1399 0.1268 0.1193 0.1130 0.1076 0.1030 0.0990 0.0954 0.0924 OLOS 0.0572 0.0830 0.00 0813 00797 0.0782 002 0.00 9.2980 111 UHEN 1947 2127430 2013 5311 15761 161611 00:14 00119 06.19 30.021 0.009 Th17 In 02
