An investment with total costs of $8,000 will generate total revenues of $9,000 for one year Use Appendix B to answer the questions Use a minus sign to enter negative values, if any Round your answers to the nearest dollar If funds cost 10 percent, the NPV is $ 3 What would be your advice to management The investment be made Would your answers be different if the cost of capital is 18 percent If funds cost 18 percent, the NPV is $ ( The investment be made Interest Factors for the Present Value of One Dollar begin tabular c c c c c c c c c c c c c c c c c c c hline begin tabular l Time Period (e g year) end tabular 16 200 36 4x 5 6 74 8 9 10 12 14 15 16 18 200 28 hline 1 990 980 971 962 952 943 935 926 917 909 893 877 870 862 847 833 806 781 hline 2 980 961 943 925 907 890 873 857 842 826 797 769 756 743 718 694 650 610 hline 3 971 942 915 889 864 840 816 794 772 751 712 675 658 641 609 579 524 477 hline 4 961 924 889 855 823 792 763 735 708 683 636 592 572 552 516 482 423 373 hline 5 951 906 863 822 784 747 713 681 650 621 567 519 497 476 437 402 341 291 hline 6 942 888 838 790 746 705 666 630 596 564 507 456 432 410 370 335 275 227 hline 7 933 871 813 760 711 665 623 583 547 513 452 400 376 354 314 279 222 178 hline 8 923 853 789 731 677 627 582 540 502 467 404 351 327 305 266 233 179 139 hline 9 914 837 766 703 645 592 544 500 460 424 361 308 284 263 226 194 144 108 hline 10 905 820 744 676 614 558 508 463 422 386 322 270 247 227 191 162 116 085 hline 11 896 804 722 650 585 527 475 429 388 350 287 237 215 195 162 135 094 066 hline 12 887 788 701 625 557 497 444 397 356 319 257 208 187 168 137 112 076 052 hline 13 879 773 681 601 530 469 415 368 326 290 229 182 163 145 116 093 061 040 hline 14 870 758 661 577 505 442 388 340 299 263 205 160 141 125 099 078 049 032 hline 15 861 743 642 555 481 417 362 315 275 239 183 140 123 108 084 065 040 025 hline 16 853 72 62 53 45 39 33 29 25 21 16 12 10 093 071 054 0 019 hline 17 844 714 605 513 436 371 317 270 231 198 146 108 093 080 060 045 026 015 hline 18 836 700 587 494 416 350 296 250 212 180 13 095 081 069 051 038 021 012 hline 19 828 686 570 47 396 331 27 232 194 164 116 083 070 060 043 031 017 009 hline 20 820 673 554 456 377 312 258 215 178 149 104 073 061 051 037 026 014 007 hline 25 780 610 478 375 295 233 184 146 116 092 059 038 030 024 016 010 005 002 hline 30 742 552 412 308 231 174 131 099 075 057 033 020 015 012 007 004 002 001 hline end tabular

Question

An investment with total costs of $8,000 will generate total revenues of $9,000 for one year  Use Appendix B to answer the questions  Use a minus sign to enter negative values, if any  Round your answers to the nearest dollar  If funds cost 10 percent, the NPV is  $ 3  What would be your advice to management  The investment be made  Would your answers be different if the cost of capital is 18 percent  If funds cost 18 percent, the NPV is  $ ( The investment be made  Interest Factors for the Present Value of One Dollar  begin tabular   c c c c c c c c c c c c c c c c c c c    hline  begin tabular  l  Time    Period    (e g     year)  end tabular    16   200   36   4x   5    6    74   8    9    10    12    14    15    16    18    200     28      hline 1   990   980    971    962    952    943    935    926   917   909    893    877    870    862   847   833    806    781     hline 2   980   961   943   925   907   890   873    857   842   826   797    769   756    743   718    694   650   610     hline 3   971    942   915   889    864   840    816    794    772    751    712    675    658    641    609   579    524   477     hline 4   961   924   889    855   823    792    763    735    708    683    636    592    572    552    516    482    423    373     hline 5   951   906    863   822   784    747    713    681   650    621    567   519    497    476    437    402   341   291     hline 6   942   888    838   790   746    705    666    630    596    564    507    456   432   410   370    335    275    227     hline 7    933   871    813    760    711    665    623    583    547   513    452   400    376    354   314    279    222    178     hline 8    923   853    789    731   677   627    582    540    502    467   404    351    327    305    266   233    179    139     hline 9   914   837    766    703   645    592    544    500   460   424   361    308   284    263   226    194    144    108     hline 10   905   820    744   676    614    558    508    463    422   386    322    270   247    227    191    162    116    085     hline 11   896   804   722    650   585    527   475    429   388    350    287    237    215   195    162    135    094    066     hline 12   887   788    701   625   557   497    444   397   356   319   257   208    187   168   137    112   076   052     hline 13   879    773   681   601   530    469    415   368    326    290    229    182    163    145    116    093    061    040     hline 14   870   758    661   577   505    442    388    340   299   263    205    160    141    125   099    078    049   032     hline 15   861   743    642    555    481    417   362    315    275    239    183    140    123    108    084    065    040    025     hline 16   853    72    62    53    45    39   33   29    25   21    16    12    10    093    071    054   0   019     hline 17   844    714    605    513   436    371   317    270   231    198    146    108    093    080    060    045    026    015     hline 18    836    700    587    494    416    350    296   250    212    180   13   095    081    069   051    038    021    012     hline 19   828   686   570   47   396    331   27   232    194    164    116    083    070    060    043    031    017    009     hline 20    820    673    554    456   377    312   258    215    178    149    104    073    061    051    037    026    014    007     hline 25    780    610    478    375    295    233    184    146    116    092    059    038    030    024    016    010    005    002     hline 30    742    552    412    308    231    174   131    099    075    057    033    020    015    012    007    004    002    001     hline  end tabular

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An investment with total costs of $8,000 will generate total revenues of $9,000 for one year. Use Appendix B to answer the questions. Use a

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