6 Tanya and Tim are partners in a business. They have approached each other regarding po to aid their business in creating more revenue. Tanya's investment would require an initia $40,000 but would provide an additional revenue stream of $28,000 year and $22,000 t investment would cost $55,000 and would bring in additional revenue of $35,000 year thereafter. Both investments would provide revenue for four years. Using a discount rat the discounted payback period for each investment. intermediary calculations to the nearest whole dollar and the final payback period to 2 taxes.) 7 8 PRESENT VALUE Periods 5 234 S N 00 1 9 10 8% 0.926 0.857 0.794 0.735 0.681 0.63 0.583 0.54 0.5 0.463 PRESENT VALUE OF AN ANNUITY 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322

Tanya and Tim are partners in a business. They have approached each other regarding pc to aid their business in creating more revenue. Tanya's investment would require an initii $40,000 but would provide an additional revenue stream of $28,000 year and $22,000 investment would cost $55,000 and would bring in additional revenue of $35,000 year thereafter. Both investments would provide revenue for four years. Using a discount rat the discounted payback period for each investment. intermediary calculations to the nearest whole dollar and the final payback period to 2 taxes.) PRESENT VALUE OF AN ANNUITY