AA 24-2 (Static) Comparative Analysis LO A1

Information on assumed capital investments in the current year for Google and Apple follow. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

$ millions	Google	Apple
Initial investment	$ (23,548)	$ (10,495)
Annual net cash flows, years 110	$ 4,000	$ 3,000
Required rate of return on investment	6%	7%

Required: 1. Compute break-even time for both companies. 2. Based on break-even time, which company can expect its investment to more quickly yield positive net cash flows?

Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute break-even time for both companies. (Round "Break even time" answers to 1 decimal place.) Google 7.5 years Apple 4.2 years Break-even time Table B.4$Future Value of an Annuity of 1 f=[(1 + i)" - 1]/i Rate 1% 2% 3% 4% 5% 6% 7% 8% 9% 9 Periods Periods 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1 1.0000 2.0400 1.0000 2.0500 2 2.0100 2.0200 2.0300 2.0600 2.0700 2.0800 2.0900 2 3 3.0301 3.0604 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3 4 4.0604 4.1216 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4 4 4.5731 5.9847 5 5 5.1010 5.3091 5.4163 5.5256 5.6371 5 5.2040 6.3081 5.7507 7.1533 5.8666 7.3359 6 6.1520 6.4684 6.6330 6.8019 6.9753 7.5233 6 7 7.2135 7.8983 8.1420 8.3938 9.2004 7 7.6625 8.8923 8 8 8.2857 9.2142 9.5491 9.8975 8.6540 10.2598 11.9780 11.0285 7.4343 8.5830 9.7546 10.9497 8 9 9 9.3685 9 9 11.0266 12.5779 8.9228 10.6366 12.4876 14.4866 16.6455 18.9771 11.4913 13.1808 14.9716 13.0210 15.1929 10 10.4622 11.5668 10 13.8164 15.7836 11 12.1687 14.2068 17.5603 11 12 12.6825 13.4121 15.9171 16.8699 12 17.8885 20.1406 10% 12% 15% 1.0000 1.0000 1.0000 2.1000 2.1200 2.1500 3.3100 3.3744 3.4725 4.6410 4.7793 4.9934 6.1051 6.3528 6.7424 7.7156 8.1152 8.7537 9.4872 10.0890 11.0668 11.4359 12.2997 13.7268 13.5795 14.7757 16.7858 15.9374 17.5487 20.3037 18.5312 20.6546 24.3493 21.3843 24.1331 29.0017 24.5227 28.0291 34.3519 27.9750 32.3926 40.5047 31.7725 37.2797 47.5804 35.9497 42.7533 55.7175 40.5447 48.8837 65.0751 45.5992 55.7497 75.8364 51.1591 63.4397 88.2118 57.2750 72.0524 102.4436 98.3471 133.3339 212.7930 164.4940 241.3327 434.7451 271.0244 431.6635 881.1702 442.5926 767.0914 | 1,779.0903 13 10.1591 10.5828 11.4639 12.0061 12.8078 13.4864 14.1920 15.0258 15.6178 16.6268 17.0863 18.2919 18.5989 | 20.0236 20.1569 21.8245 21.7616 23.6975 13.8093 14.6803 13 14 14 21.4953 24.2149 27.1521 18.8821 21.0151 23.2760 25.6725 28.2129 15 20.1407 22.9534 26.0192 29.3609 33.0034 36.9737 22.5505 25.1290 27.8881 17.7130 19.5986 21.5786 23.6575 25.8404 28.1324 30.5390 15 16 16 17 30.8402 33.9990 30.3243 33.7502 37.4502 17 18 18 23.4144 14.9474 15.9739 16.0969 17.2934 17.2579 18.6393 18.4304 20.0121 19.6147 21.4123 20.8109 22.8406 22.0190 24.2974 28.2432 32.0303 34.7849 | 40.5681 41.6603 49.9945 25.6454 41.3013 46.0185 19 30.9057 33.7600 36.7856 37.3790 19 25.1169 26.8704 36.4593 27.6712 29.7781 41.4463 45.7620 20 40.9955 20 25 41.6459 54.8645 73.1059 25 33.0660 47.7271 66.4388 90.3203 63.2490 94.4608 30 47.5754 79.0582 30 51.1601 84.7009 136.3075 215.7108 337.8824 56.0849 73.6522 113.2832 172.3168 35 60.4621 138.2369 35 111.4348 154.7620 40 48.8864 60.4020 75.4013 95.0255 120.7998 199.6351 259.0565 40 Table B.3 Present Value of an Annuity of 1 p= [1 - 1/(1 + i)"]/i Rate Periods 2% 3% 4% 5% 6% 7% 8% 9% 12% 15% 1% 0.9901 10% 0.9091 Periods 1 1 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.8929 0.8696 1.6257 2 1.9704 1.9416 1.9135 1.8594 1.8080 1.7833 1.7591 1.7355 2 1.8861 2.7751 1.8334 2.6730 3 2.9410 2.8839 2.8286 2.7232 2.6243 2.5313 2.2832 1.6901 2.4018 3.0373 2.5771 3.3121 3 2.4869 3.1699 4 3.9020 3.7171 3.6299 3.5460 3.4651 3.3872 2.8550 4 3.8077 4.7135 5 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.2397 3.8897 4.4859 3.7908 4.8534 5.7955 5 5 3.6048 4.1114 3.3522 3.7845 6 5.6014 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.3553 6 7 6.7282 6.4720 6.2303 5.7864 5.5824 5.3893 5.2064 4.8684 4.5638 7 6.0021 6.7327 5.0330 5.5348 8 7.6517 7.3255 7.0197 6.4632 6.2098 5.9713 5.7466 5.3349 4.1604 4.4873 4.7716 4.9676 5.3282 8 9 8.5660 8.1622 7.7861 6.8017 6.5152 6.2469 5.9952 5.7590 9 7.4353 8.1109 7.1078 7.7217 10 9.4713 8.9826 8.5302 7.3601 7.0236 6.4177 5.6502 5.0188 10 6.7101 7.1390 6.1446 6.4951 11 10.3676 9.7868 9.2526 8.7605 8.3064 7.4987 6.8052 5.9377 11 7.8869 8.3838 12 11.2551 9.9540 9.3851 8.8633 7.1607 6.8137 10.5753 11.3484 12 7.9427 8.3577 7.5361 7.9038 5.2337 5.4206 5.5831 6.1944 6.4235 13 12.1337 10.6350 9.9856 9.3936 8.8527 7.1034 13 7.4869 7.7862 14 12.1062 11.2961 10.5631 9.2950 8.7455 8.2442 7.3667 6.6282 5.7245 14 13.0037 13.8651 15 12.8493 11.9379 9.8986 10.3797 10.8378 9.7122 9.1079 6.8109 5.8474 11.1184 11.6523 15 8.5595 8.8514 8.0607 8.3126 7.6061 7.8237 16 14.7179 9.4466 6.9740 5.9542 16 13.5777 14.2919 10.1059 10.4773 17 15.5623 11.2741 9.1216 6.0472 17 12.5611 13.1661 13.7535 14.3238 12.1657 12.6593 8.5436 8.7556 8.0216 8.2014 18 16.3983 14.9920 10.8276 9.3719 6.1280 7.1196 7.2497 7.3658 18 9.7632 10.0591 10.3356 10.5940 19 11.6896 12.0853 12.4622 17.2260 9.6036 8.3649 6.1982 19 15.6785 16.3514 19.5235 8.9501 9.1285 20 18.0456 14.8775 9.8181 8.5136 6.2593 20 11.1581 11.4699 12.7834 13.7648 7.4694 7.8431 13.1339 13.5903 15.6221 17.2920 18.6646 14.0939 11.6536 9.8226 9.0770 6.4641 25 30 25 22.0232 25.8077 29.4086 17.4131 19.6004 10.6748 11.2578 22.3965 10.2737 9.4269 8.0552 30 12.4090 12.9477 TTT 15.3725 16.3742 17.1591 6.5660 6.6166 35 24.9986 21.4872 11.6546 10.5668 9.6442 14.4982 15.0463 8.1755 8.2438 35 40 40 32.8347 27.3555 23.1148 19.7928 13.3317 11.9246 10.7574 9.7791 6.6418 Table B.2 Future Value of 1 f=(1 + i)" Rate Periods 1% 2% 3% 4% 4 5% 6% 7% 8% 9% 10% 12% 15% Periods 0 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 0 I 1.0000 1.1200 1 1.0100 1.0200 1.0400 1.0600 1.0700 1.0800 1.0900 1.1000 1.0300 1.0609 1 1.1500 1.3225 2 1.0201 1.0816 1.1236 1.1449 1.1664 1.2100 1.2544 2 1.0404 1.0612 1.0500 1.1025 1.1576 1.2155 1.1881 1.2950 3 1.0303 1.0927 1.1249 1.1910 1.2250 1.2597 1.3310 1.4049 1.5209 3 4 1.0406 1.1255 1.1699 1.3108 1.3605 1.4116 4 4 1.2625 1.3382 1.0824 1.1041 1.1262 1.4641 1.6105 5 1.7490 2.0114 1.1593 1.2167 1.4026 1.4693 1.5386 1.0510 1.0615 1.5735 1.7623 1.9738 5 6 1.1941 1.2763 1.3401 1.4071 1.5007 1.2653 1.3159 6 1.5869 1.7138 1.6771 1.8280 1.7716 1.9487 2.3131 2.6600 7 1.0721 1.1487 1.2299 2.2107 7 1.6058 1.7182 8 1.0829 1.2668 1.4775 1.4185 1.5036 1.5938 1.6895 1.7908 1.8509 1.9926 1.1717 1.1951 8 2.1436 2.3579 1.3686 1.4233 1.4802 2.4760 2.7731 3.0590 3.5179 1.0937 1.3048 1.8385 1.9990 2.1719 9 10 9 1.2190 1.3439 1.9672 2.3674 3.1058 1.1046 1.1157 1.1268 2.1589 2.3316 2.5937 2.8531 4.0456 4.6524 10 11 11 1.2434 1.3842 1.8983 2.1049 2.5804 3.4785 12 1.2682 2.0122 2.2522 2.5182 2.8127 3.1384 5.3503 12 3.8960 4.3635 13 1.2936 2.1329 13 1.4258 1.4685 1.5126 1.5580 1.1381 1.1495 1.1610 1.5395 1.6010 1.6651 1.7317 1.8009 1.8730 2.4098 2.5785 1.5513 1.6289 1.7103 1.7959 1.8856 1.9799 2.0789 2.1829 2.2920 2.4066 2.5270 2.7196 2.9372 3.0658 3.3417 14 6.1528 7.0757 2.2609 4.8871 1.3195 1.3459 14 15 2.3966 3.1722 3.6425 5.4736 15 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 8.1371 9.3576 16 1.1726 1.6047 2.7590 2.9522 3.1588 2.5404 3.4259 6.1304 1.3728 1.4002 16 3.9703 4.3276 17 1.1843 1.9479 2.6928 6.8660 10.7613 17 1.6528 1.7024 3.7000 3.9960 18 1.1961 1.4282 2.0258 2.8543 3.3799 4.7171 7.6900 18 12.3755 14.2318 19 1.2081 1.7535 2.1068 3.0256 3.6165 4.3157 5.1417 6.1159 8.6128 19 1.4568 1.4859 20 1.2202 2.6533 4.6610 16.3665 2.1911 2.6658 3.2071 4.2919 1.8061 2.0938 2.4273 3.8697 5.4274 5.6044 8.6231 25 1.2824 20 25 1.6406 3.3864 6.7275 10.8347 17.4494 6.8485 9.6463 17.0001 29.9599 32.9190 30 1.3478 3.2434 4.3219 5.7435 7.6123 10.0627 13.2677 30 T 1.8114 1.9999 1.4166 3.9461 10.6766 14.7853 52.7996 35 40 35 2.8139 3.2620 5.5160 7.0400 7.6861 10.2857 20.4140 31.4094 66.2118 133.1755 267.8635 28.1024 45.2593 1.4889 2.2080 4.8010 14.9745 21.7245 93.0510 40 Table B.1* Present Value of 1 p=1/(1+i)" Rate 2% 3% 4% 5% 6% 7% 3% 10% 12% 15% Periods Periods 1 1% 1 0.9901 9% 9 0.9174 0.9804 0.9709 0.9615 0.9434 0.9259 0.9091 0.8929 0.8696 1 0.9346 0.8734 2 0.9803 0.9612 0.9426 0.9524 0.9070 0.8638 0.9246 0.8900 0.8573 0.8417 0.8264 0.7561 2 0.7972 0.7118 3 0.9706 0.9151 0.8890 0.8163 0.7938 0.7722 0.7513 0.6575 3 0.9423 0.9238 4 0.8885 0.8548 0.8227 0.7350 0.7084 0.6830 0.6355 0.5718 4 0.9610 0.9515 0.8396 0.7921 0.7473 0.7050 0.7629 0.7130 5 0.8219 0.7835 0.6806 0.6499 0.6209 5 0.9057 0.8880 6 0.8626 0.8375 0.8131 0.4972 0.4323 0.9420 0.7903 0.6663 0.5963 0.5645 0.5674 0.5066 0.4523 0.7462 0.7107 6 6 0.6302 0.5835 7 0.8706 0.7599 0.6227 0.5470 0.5132 0.3759 7 0.9327 0.9235 0.9143 0.6651 0.6274 8 0.7894 0.7307 0.6768 0.5403 0.5019 0.4665 0.4039 8 0.8535 0.8368 0.3269 0.2843 0.7664 0.7026 0.4604 0.5820 0.5439 0.5083 0.4241 0.3606 9 10 9 0.6446 0.6139 0.5919 0.5584 0.9053 0.8203 0.7441 0.6756 0.4224 0.3855 0.5002 0.4632 0.4289 0.3971 0.3220 0.2875 0.2472 0.2149 10 11 11 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.3875 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3555 0.3505 0.3186 0.2897 0.2567 12 0.1869 0.1625 13 0.7730 0.6810 0.5303 0.4688 0.4150 0.3677 0.3262 13 0.8787 0.8700 0.8613 0.2292 0.2046 14 0.7579 0.6611 0.4423 0.3878 0.1413 14 0.6006 0.5775 0.5553 0.5339 0.5051 0.4810 0.3405 0.3152 0.2992 0.2745 15 0.7430 0.6419 0.4173 0.3624 0.2633 0.2394 0.2176 0.1229 15 16 0.7284 0.6232 0.3387 0.2919 0.2519 0.1069 0.8528 0.8444 16 0.1827 0.1631 0.1456 0.4581 0.4363 0.3936 0.3714 17 0.7142 0.6050 0.5134 0.3166 0.2703 0.2311 0.1978 0.0929 17 18 0.8360 0.7002 0.4936 0.2502 0.1799 0.0808 18 0.5874 0.5703 0.4155 0.3957 0.3503 0.3305 0.2959 0.2765 0.2120 0.1945 0.1300 0.1161 19 0.8277 0.6864 0.4746 0.1635 19 0.2317 0.2145 0.0703 0.0611 0.8195 0.5537 0.4564 0.3769 0.3118 0.1784 0.1486 0.1037 20 25 0.6730 0.6095 0.5521 0.2584 0.1842 20 25 0.7798 0.4776 0.3751 0.2953 0.1460 0.0588 0.0304 0.2330 0.1741 0.1160 0.0754 0.0923 0.0573 30 0.4120 0.3083 0.2314 0.0994 0.0334 la 0.0151 0.7419 0.7059 30 0.1314 0.0937 35 0.5000 0.3554 0.2534 0.1813 0.1301 0.0490 0.0356 0.0189 35 0.0676 0.0460 0.0075 0.0037 40 0.6717 0.4529 0.3066 0.2083 0.1420 0.0972 0.0668 0.0318 0.0221 0.0107 40