Alto Clinic plans to purchase a new centrifuge machine for its Massachusetts facility. The machine costs $174,000 and is expected to have a useful life of 9 years, with a terminal disposal value of $20,500. Savings in cash operating costs are expected to be $35,000 per year. However, additional working capital is needed to keep the machine running efficiently. The working capital must continually be replaced, so an investment of $14,000 needs to be maintained at all times, but this investment is fully recoverable (will be "cashed in") at the end of the useful life. Alto Clinic's required rate of return is 10%. Ignore income taxes in your analysis. Assume all cash flows occur at year-end except for initial investment amounts. Alto Clinic uses straight-line depreciation for its machines. Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirements - X Requirement 1. Calculate net present value. (Use facto Enter the net present value of the investment rounded to the nearest whole dollar.) The net present value is $ 1. Calculate net present value. 2. Calculate internal rate of return. 3. Calculate accrual accounting rate of return based on net initial investment. 4. Calculate accrual accounting rate of return based on average investment. 5. You have the authority to make the purchase decision. Why might you be reluctant to base your decision on the DCF methods? Print Done Enter any number in the edit fields and then click Check Answer. 5 parts Clear All Check Answer remaining Reference - X Periods 2 Present Value of $1 Periods 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 14 0.758 15 0.743 16 0.728 0.714 4% 6% 8% 0.962 0.943 0.926 0.925 0.890 0.857 0.889 0.840 0.794 0.855 0.792 0.735 0.822 0.747 0.681 0.790 0.705 0.630 0.7600.665 0.583 0.731 0.627 0.540 0.703 0.592 0.500 0.676 0.558 0.463 0.650 0.527 0.429 0.625 0.497 0.397 0.601 0.4690.368 0.577 0.442 0.340 0.555 0.417 0.315 0.534 0.394 0.292 0.513 0.371 0.270 10% 12% 0.9090.893 0.826 0.797 0.751 0.712 0.683 0.636 0.621 0.567 0.564 0.507 0.513 0.452 0.467 0.404 0.424 0.361 0.386 0.322 0.350 0.287 0.319 0.257 0.290 0.229 0.263 0.205 0.239 0.183 0.218 0.163 0.198 0.146 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 0.237 0.208 0.182 0.160 0.140 0.123 0.108 16% 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.093 0.080 18% 20% 22% 0.847 0.833 0.820 0.718 0.694 0.672 0.6090.579 0.551 0.516 0.482 0.451 0.437 0.402 0.370 0.370 0.335 0.303 0.314 0.279 0.249 0.266 0.233 0.204 0.225 0.194 0.167 0.191 0.162 0.137 0.162 0.1350.112 0.137 0.112 0.092 0.116 0.093 0.075 0.099 0.078 0.062 0.084 0.065 0.051 0.071 0.054 0.042 0.060 0.045 0.034 24% 0.806 0.650 0.524 0.423 0.341 0.275 0.222 0.179 0.144 0.116 0.094 0.076 0.061 0.049 0.040 0.032 0.026 26% 0.794 0.630 0.500 0.397 0.315 0.250 0.198 0.157 0.125 0.099 0.079 0.062 0.050 0.039 0.031 0.025 0.020 28% 0.781 0.610 0.477 0.373 0.291 0.227 0.178 0.139 0.108 0.085 0.066 0.052 0.040 0.032 0.025 0.019 0.015 30% 32% 0.769 0.758 0.592 0.574 0.455 0.435 0.350 0.329 0.269 0.250 0.207 0.189 0.1590.143 0.123 0.108 0.094 0.082 0.073 0.062 0.056 0.047 0.043 0.036 0.033 0.027 0.025 0.021 0.020 0.016 0.015 0.012 0.012 0.009 40% 0.714 0.510 0.364 0.260 0.186 0.133 0.095 0.068 0.048 0.035 0.025 0.018 0.013 0.009 0.006 0.005 0.003 boonoooo voor AWN- Aara a laaaaaaaaa Print Done i Reference - X Periods 1 2 3 4 6 7 Present Value of Annuity of $1.00 in Arrears* Periods 2% 4% 6% 8% 0.980 0.962 0.9430.926 1.942 1.886 1.833 1.783 2.884 2.775 2.673 2.577 3.808 3.6303.465 3.312 4.713 4.452 4.212 3.993 5.601 5.242 4.917 4.623 6.472 6.002 5.5825.206 7.325 6.733 6.2105.747 8.162 7.435 6.8026.247 8.983 8.111 7.360 6.710 9.787 8.760 7.887 7.139 10.575 9.385 8.384 7.536 11.348 9.9868.853 7.904 14 12.106 10.563 9.295 8.244 12.849 11.118 9.712 8.559 13.578 11.652 10.106 8.851 17 14.292 12.166 10.477 9.122 8 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.103 7.367 7.606 7.824 8.022 12% 14% 16% 18% 0.893 0.8770.862 0.847 1.6901.647 1.605 1.566 2.402 2.322 2.246 2.174 3.037 2.914 2.798 2.690 3.605 3.433 3.274 3.127 4.111 3.8893.685 3.498 4.564 4.288 4.039 3.812 4.968 4.639 4.344 4.078 5.328 4.946 4.6074.303 5.650 5.216 4.8334.494 5.938 5.453 5.029 4.656 6.194 5.660 5.1974.793 6.424 5.842 5.342 4.910 6.628 6.002 5.468 5.008 6.811 6.142 5.575 5.092 6.974 6.265 5.668 7.120 6.373 5.749 5.222 Zara a la Fara Faza | 20% 0.833 1.528 2.106 2.589 2 991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.730 4.775 | 22% 0.820 1.492 2.042 2.494 2864 3.167 3.416 3.619 3.786 3.923 4.035 4.127 4.203 4.265 4.315 4.357 4.391 | 24% 0.806 1.457 1.981 2.404 2 745 3.020 3.242 3.421 3.566 3.682 3.776 3.851 3.912 3.962 4.001 4.033 4.059 cana | 26% | 28% 30% 0.794 0.781 0.769 1.424 1.392 1.361 1.923 1.868 1.816 2.320 2.241 2.166 2 635 2532 2436 2.885 2.759 2.643 3.083 2.937 2.802 3.241 3.076 2.925 3.3663.184 3.019 3.4653.269 3.092 3.543 3.3353.147 3.6063.387 3.190 3.656 3.427 3.223 3.695 3.459 3.249 3.726 3.483 3.268 3.751 3.503 3.283 3.771 3.518 3.295 32% 0.758 1.331 1.766 2.096 2.345 2.534 2.677 2.786 2.868 2.930 2.978 3.013 3.040 3.061 3.076 3.088 3.097 40% 0.714 1.224 1.589 1.849 2.035 2.168 2.263 2.331 2.379 2.414 2.438 2.456 2.469 2.478 2.484 2.489 2.492 11 12 15 17 AAAAAAAAAAAAAAA Print Done Reference Compound Amount of $1.00 (The Future Value of $1.00) Periods 2% 4% 6% 8% 10% 12% 14% 16% 1.020 1.040 1.0601.080 1.100 1.120 1.140 1.160 1.040 1.082 1.124 1.166 1.210 1.254 1.300 1.346 1.061 1.125 1.191 1.260 1.331 1.405 1.482 1.561 4 1.0821.170 1.262 1.360 1.464 1.574 1.689 1.811 1.104 1.217 1.338 1.469 1.611 1.762 1.925 2.100 1.126 1.265 1.419 1.587 1.772 1.974 2.195 2.436 1.149 1.316 1.504 1.714 1.949 2.211 2.502 2.826 8 1.172 1.369 1.594 1.851 2.144 2.476 2.853 3.278 1.195 1.423 1.689 1.999 2.358 2.773 3.252 3.803 1.219 1.480 1.791 2.159 2.594 3.106 3.707 4.411 1.243 1.539 1.898 2.332 2.853 3.4794.226 5.117 12 1.268 1.601 2.012 2.518 3.138 3.896 4.818 5.936 13 1.294 1.665 2.133 2.720 3.452 4.363 5.492 6.886 14 1.319 1.732 2.261 2.937 3.797 4.8876.261 7.988 1.346 1.801 2.397 3.172 4.177 5.474 7.138 9.266 1.373 1.873 2.5403.426 4.595 6.130 8.137 10.748 17 1400 1 948 2693 3.700 5054 6 866 927612 468 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6.176 .288 8.599 10.147 11.974 14.129 16.672 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 18.488 22 186 22% 1.220 1.488 1.816 2.215 2.703 3.297 4.023 4.908 5.987 7.305 8.912 10.872 13.264 16.182 19.742 24.086 29 384 24% 1.240 1.538 1.907 2.364 2.932 3.635 4.508 5.590 6.931 8.594 10.657 13.215 16.386 20.319 25.196 31.243 38 741 26% 1.260 1.588 2.000 2.520 3.176 4.002 5.042 6.353 8.005 10.086 12.708 16.012 20.175 25.421 32.030 40.358 50 851 28% 1.280 1.638 2.097 2.684 3.436 4.398 5.629 7.206 9.223 11.806 15.112 19.343 24.759 31.691 40.565 51.923 66 461 30% 1.300 1.690 2.197 2.856 3.713 4.827 6.275 8.157 10.604 13.786 17.922 23.298 30.288 39.374 51.186 66.542 8 6 504 32% 40% 1.320 1.400 1.742 1.960 2.300 2.744 3.036 3.842 4.007 5.378 5.290 7.530 6.983 10.541 9.217 14.758 12.166 20.661 16.060 28.925 21.199 40.496 27.983 56.694 36.937 79.371 48.757 111.120 64.359 155.568 84.954 217.795 112139304 913 7 16 Print Done Reference - X voor AWN- Compound Amount of Annuity of $1.00 in Arrears* (Future Value of Annuity) Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.020 2.040 2.060 2.080 2.100 2.120 2.140 2.160 2.180 3.060 3.122 3.184 3.246 3.310 3.374 3.440 3.506 3.572 4.122 4.246 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.204 5.416 5.637 5.867 6.105 6.353 6.610 6.877 7.154 6.308 6.633 6.975 7.336 7.716 8.115 8.536 8.977 9.442 7.434 7.898 8.394 8.923 9.487 10.089 10.730 11.414 12.142 8.583 9.214 9.897 10.637 11.436 12.300 13.233 14.240 15.327 9.755 10.583 11.491 12.488 13.579 14.776 16.085 17.519 19.086 10.950 12.006 13.181 14.487 15.937 17.549 19.337 21.321 23.521 12.169 13.486 14.972 16.645 18.531 20.655 23.045 25.733 28.755 13.412 15.026 16.870 18.977 21.384 24.133 27.271 30.850 34.931 14.680 16.627 18.882 21.495 24.523 28.029 32.089 36.786 42.219 15.974 18.292 21.015 24.215 27.975 32.393 37.581 43.672 50.818 17.293 20.024 23.276 27.152 31.772 37.280 43.842 51.660 60.965 18.639 21.825 25.673 30.324 35.950 42.753 50.980 60.925 72.939 17 20.012 23.098 28. 213 33.750 40545 48 884 59 11871 67387 068 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 87.442 105 931 22% 1.000 2.220 3.708 5.524 7.740 10.442 13.740 17.762 22.670 28.657 35.962 44.874 55.746 69.010 85.192 104.935 129 020 24% 1.000 2.240 3.778 5.684 8.048 10.980 14.615 19.123 24.712 31.643 40.238 50.895 64.110 80.496 100.815 126.011 157 253. 26% 1.000 2.260 3.848 5.848 8.368 11.544 15.546 20.588 26.940 34.945 45.031 57.739 73.751 93.926 119.347 151.377 191 735 28% 1.000 2.280 3.918 6.016 8.700 12.136 16.534 22.163 29.369 38.593 50.398 65.510 84.853 109.612 141.303 181.868 233 791 30% 1.000 2.300 3.990 6.187 9.043 12.756 17.583 23.858 32.015 42.619 56.405 74.327 97.625 127.913 167.286 218.472 285 014 32% 1.000 2.320 4.062 6.362 9.398 13.406 18.696 25.678 34.895 47.062 63.122 84.320 112.303 149.240 197.997 262.356 347 309 MONOWNIAN ou en Print Done