_5. Declan MacManus is considering a capital budgeting project. This project will initially require a $25,000 investment in equipment and a $3,000 working capital investment. The useful life of this project is 5 years with an expected salvage value of zero on the equipment. The working capital will be released at the end of the 5 years. The new system is expected to generate net cash inflows of $9,000 per year in each of the 5 years. Also a repair of the equipment will be required at the END of year 3, costing $5,000. MacManus' discount rate is 14%. The net present value of this project is closest to (ignoring taxes): $(3,088) $1,079 $2,522 $4,454 $3,375 I Periods 1 2 3 4 Dovolo AW Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.99 0.98 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.97 1.942 | 1.913 11.886 | 1.859 1.833 1.783 1.736 1.69 1.647 1.605 11.566 1.528 2.941 2 .884 2.829 2.775 2.723 2.673 1 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.902 3.808 3.717 I 3.63 3.546 3.465 3.312 3.17 3.037 2.914 2.798 2.69 2.589 4.853 4.713 4.58 4.452 4.329 4.212 | 3.993 3.791 3.605 3.433 3.274 13.127 | 2.991 5.795 5.601 5.417 5.242 15.076 | 4.917 4.623 4.355 4.111 3.889 3 .685 3.498 3.326 6.728 6.472 6.23 6.002 5.786 5.582 5.206 4.868 4.564 4.288 14.039 3.812 3.605 7.652 7.325 1 7.02 6.733 6.463 6.21 5.747 5.335 4.968 4.639 4.344 4.078 3.837 8.566 18.162 7.786 7.435 7.108 16.802 6.247 5.759 5.328 4.946 4.607 14.303 4.031 9.471 8.983 8.53 8.111. 7.722 7.36 6.71 6.145 5.65 5.216 4.833 4.494 4.192 10.368 9.787 19.253 8.76 8.306 7.887 1 7.139 6.495 5.938 5.453 | 5.029 4.656 4.327 11.255 | 10.575 9.954 19.385 8.8638.384 17.536 6.814 6.1945.66 15.197 4.793 4.439 12.134 1 11.348 10.635 9.986 9.394 8.853 7.904 | 7.103 6.424 5.842 5.342 4.91 4.533 13.004 12.106 11.296 10.563 | 19.899 9.295 8.244 7.367 | 6.628 6.002 5.468 5.008 4.611 13.865 12.849 11.938 11.11810.38 9.712 18.559 7.606 6.811 16.142 5.575 5.092 4.675 18.046 | 16.351 14.877 13.59 12.462 11.47 9.818 8.514 7.4696 .623 5.929 | 5.353 4.87 22.023 19.523 17.41315.622 14.094 | 12.783 10.675 9.077 7.8436.873 16.097 5.467 4.948 25.808 | 22.396 19.6 17.292 15.372 13.765 | 11.258 9.427 8.055 7.003 | 6.177 | 5.517 4.979 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 | 8.244 | 7.105 6.234 | 5.548 | 4.997 1 11 12 13 14 15 20 25 30 40 Periods 1 2 00 volo AWN | 1% 2% 3% 4% 0.99 0.98 0.971 0.962 0.98 0.961 0.943 0.925 | 0.971 0.942 0.915 0.889 0.961 0.924 0.888 | 0.855 0.951 0.906 0.863 0.822 | 0.942 | 0.888 | 0.837 | 0.79 0.933 0.871 10.813 0.76 0.923 0.853 0.789 0.731 0.914 0.837 0.766 0.703 | 0.905 | 0.82 0.744 | 0.676 0.896 0.804 10.722 0.65 0.887 0.788 0.701 0.625 0.879 0.773 0.681 0.601 0.87 0.758 0.661 0.577 0.861 0.743 0.642 0.555 0.82 0.673 10.554 0.456 0.78 0.61 0.478 0.375 0.742 0.552 | 0.412 0.308 0.672 0.453 10.307 0.208 8 9 10 11 12 13 14 15 Present Value of $1 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.907 0.89 0.857 0.826 0.797 0.769 0.743 10.718 0.694 0.864 | 0.84 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.823 0.792 10.735 0.683 10.636 0.592 0.552 0.516 0.482 0.784 0.747 0.681 0.621 0.567 10.519 0.476 0.437 0.402 0.746 | 0.705 0.63 | 0.564 | 0.507 | 0.456 1 0.41 0.37 | 0.335 | 0.711 0.665 0.583 0.513 0.452 0.4 0.354 0.314 1 0.279 0.677 0.627 0.54 0.467 0.404 10.351 0.305 | 0.266 0.233 0.645 10.592 0.5 0.424 0.361 10.308 0.263 0.225 0.194 | 0.614 | 0.558 1 0.463 0.386 10.322 0.27 0.227 10.191 10.162 0.585 0.527 0.429 0.35 0.287 0.237 0.195 0.162 0.135 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.53 0.469 0.368 0.29 0.229 0.182 0.145 0.116 0.093 0.505 | 0.442 0.34 0.263 0.205 0.16 0.125 0.099 0.078 0.481 10.417 0.315 0.239 0.183 0.14 0.108 0.084 0.065 | 0.377 10.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.295 0.233 0.146 10.092 10.059 0.038 10.024. 10.016 0.01 0.231 0.174 0.099 0.057 0.033 0.02 0.012 0.007 0.004 | 0.142 0.097 0.046 | 0.022 0.011 | 0.005 0.003 0.001 0.001 | 20 25 30 40