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appendix a & d respectively Problem 22-09 Management of a firm with a cost of capital of 9 percent is considering a $110,000 investment with

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appendix a & d respectively
Problem 22-09 Management of a firm with a cost of capital of 9 percent is considering a $110,000 investment with annual cash flow of $44,230 for three years. Use Appendix A and Appendix D to answer the questions, a. What are the investment's net present value and internal rate of retur? Use a minus sign to enter a negative value, if any, Round your answers for the net present value to the nearest dollar and for the internal rate of return to the nearest whole number. NPV: 5 IRR: b. The internal rate of return assumes that each cash flow is reinvested at the internal rate of return. If that reinvestment rate is achieved, what in the total value of the cash flows at the end of the third year? Use the rounded internal rate of return from parte. Round your answer to the nearest dollar c. The net present value technique assumes that each cash flow is reinvested at the firm's cost of capital. What would be the total value of the cash flows at the end of the third year, if the funds are reinvested at the firm's cost of capital? Round your answer to the nearest dollar 5 Interest Factors for the Future Value of One Dollar Time Period yar 1 2 3 25 5% 6% 1.010 1.020 1030 1040 1050 1060 1.070 1.020 1.040 1061 1.082 1.102 1.124 1.145 1.030 1061 1,093 1.125 1.158 1.191 1.225 1.041 1.082 1.126 1.170 1216 1.262 1311 1.051 1.104 1.159 1.217 1.276 1.338 1.403 8% 1.080 1.166 1.260 1.360 1.469 9% 1.090 1.188 1.295 1.412 539 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1925 15% 1.150 1.322 1.521 1.749 2011 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1392 1.643 1939 2.288 20% 1.200 1.440 1.728 2.074 2.488 5 6 7 8 9 10 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1,083 1.172 1.267 1.369 1.477 1.594 1.718 1.094 1.195 1.305 1.423 1551 1.589 1.838 1.105 1.219 1.344 1.480 1.629 1.791 1.967 1.587 1.714 1.851 1999 2.159 1.677 1.828 1.993 2.172 2.367 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.313 2.660 3.059 3.518 4.046 2.436 2.826 3.278 3.803 4.411 2.700 3.186 3.759 4.436 5.234 2986 3.583 4.300 5.160 6.192 11 12 13 14 15 1.116 1.243 1.384 1.539 1.710 1.898 2.105 1.127 1.268 1.426 1.601 1.796 2.012 2.252 1.138 1.294 1.469 1665 1.886 2.133 2.410 1.149 1.319 1.513 1.732 1980 2.261 2.579 1.161 1.346 1.558 1.801 2.079 2.397 2.759 2.332 2.518 2.720 2.937 3.172 2.580 2.813 3.066 3.342 3.642 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 4.652 5.350 6.153 7,076 8.137 5.117 5.936 6.886 7.988 9.266 6.176 7.287 8.599 10.147 11.973 7.430 8.916 10.699 12.839 15.407 16 17 18 19 20 1.173 1373 1.605 1.873 2.183 2540 2.952 1.184 1.400 1.653 1.948 2.292 2.693 3.159 1.196 1.428 1.702 2.026 2.407 2.854 3.380 1.208 1.457 1754 2.107 2.527 3.026 3.617 1220 1.486 1.806 2.191 2653 3.207 3.870 3,426 3.700 3.996 4.316 4.661 3.970 4.328 4.717 5.142 5.604 4.595 5.054 5.560 6.116 6.728 6.130 8.137 6.866 9.276 7.690 10.575 8.613 12.056 9.646 13.743 9358 10.748 10.761 12.468 12.375 14.463 14.232 16.777 16.367 19.461 14.129 16.672 19.673 23.214 27.393 18.488 22.186 26.623 31.948 38.337 25 1.282 1.641 2.094 2.666 3.386 4.292 5.427 6.848 8.623 10.83517.000 26.462 32.919 40.874 62.688 95 396 30 1.348 1.811 2.427 3.243 4322 5.743 7612 10.063 13.268 17.449 29.960 50.950 66.212 85.850 143.370 237.370 Interest Factors for the Present Value of an Annuity of One Dollar Period 1 2 3 5% 6% 7% 8% 10% 12% 14% 16% 18% 20% 28% 32% 36% 0.990 0.980 0,971 0962 0.952 0.943 0935 0.926 0.917 0909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1970 1942 1913 1886 1859 1833 1808 1.783 1.759 1736 1690 1647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.941 2.884 2829 2.775 2.723 2673 2624 2.577 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1981 1.868 1.766 1674 3902 3.808 3.717 3630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2589 2.404 2.241 2.096 1966 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.9933.890 3.791 3.605 3.433 3.274 3.127 2991 2.745 2.532 2.345 2.181 5.795 5.601 5.417 5242 5.076 4.917 4.766 4.623 4.486 4355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2399 6.728 6 472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2937 2.678 2.455 7.652 7325 7020 6.733 6.463 6.210 597) 5.7475.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7435 7108 6.802 6.515 6.247 5.985 5.759 5328 4946 4,607 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7722 7360 7024 6.710 6.418 6.145 5.6505.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 6 7 8 9 10 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2 683 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3387 3.013 2.708 13 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6.424 5.842 5.342 4910 4.533 3.912 3.427 3.040 2.727 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12 561 11.652 10.838 10.106 9.447 8,851 8.312 7824 6.974 6.265 5,669 5.162 4.730 4.003 3503 3.088 2.758 17 15562 14.292 13.166 12 166 11.274 10.477 9.763 9.122 8.544 8.002 7.120 6.373 5749 5.222 4.775 4,059 3.518 3.097 2.763 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9372 8.756 8.201 7.250 6.467 5.818 5.273 4,812 4080 3.529 3.104 2767 19 17.226 15.678 14 324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 5.877 5.316 4.844 4.097 3.539 3.109 2.770 2018.046 16 351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 25 22.022 19.522 17,413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4948 4.147, 3564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7003 6 177 5517 4979 4.160 3.569 3.124 2.778

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