Appendix D Present value of an annuity of $1, PVIFA PVA=A 1- (1 + i)" 1% 3% 4% 7% 12% Period 1 0.962 0.990 1.970 0.971 1.913 9% 0.917 1.759 10% 0.909 1.736 1.886 0.893 1.690 2.402 3.037 3 4 2.941 3.902 4.853 2.829 3.717 8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 2.775 3.630 2.531 3.240 2.487 3.170 5 3.605 6 7 8 9 3.890 4.486 5.033 5.535 5.995 6.418 5.795 6.728 7.652 8.566 9.471 10.368 11.255 12.134 13.004 13.865 6.247 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 6.710 7.139 2% 0.980 1.942 2.884 3.808 4.713 5.601 6.472 7.325 8.162 8.983 9.787 10.575 11.348 12.106 12.849 13.578 14.292 14.992 15.678 16.351 19.523 22.396 27.355 31.424 11 11% 0.901 1.713 2.444 3.102 3.696 4.231 4.712 5.146 5.537 5.889 6.207 6.492 6.750 6.982 7.191 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.805 5% 0.952 1.859 2.723 3.546 4.329 5.076 5.786 6.463 7.108 7.722 8.306 8.863 9.394 9.899 10.380 10.838 11.274 11.690 12.085 12.462 14.094 15.372 17.159 18.256 Percent 6% 0.943 0.935 1.833 1.808 2.673 2.624 3.465 3.387 4.212 4.100 4.917 4.767 5.582 5.389 6.210 5.971 6.802 6.515 7.360 7.024 7.887 7.499 8.384 7.943 8.853 8.358 9.295 8.745 9.712 9.108 10.106 9.447 10.477 9.763 10.828 10.059 11.158 10.336 11.470 10.594 12.783 11.654 13.765 12.409 15.046 13.332 15.762 13.801 12 7.161 13 4.452 5.242 6.002 6.733 7.435 8.111 8.760 9.385 9.986 10.563 11.118 11.652 12.166 12.659 13.134 13.590 15.622 17.292 7.487 4.580 5.417 6.230 7.020 7.786 8.530 9.253 9.954 10.635 11.296 11.938 12.561 13.166 13.754 14.324 14.877 17.413 19.600 23.115 25.730 7.103 14 7.786 7.367 7.606 15 8.061 7.536 7.904 8.244 8.559 8.851 9.122 9.372 9.604 16 14.718 7.379 17 7.549 18 7.824 8.022 8.201 8.365 8.514 7.702 19 6.628 6.811 6.974 7.120 7.250 7.366 7.469 7.843 8.055 8.313 8.544 8.756 8.950 9.129 9.823 10.274 10.757 10.962 15.562 16.398 17.226 18.046 22.023 25.808 32.835 39.196 7.839 7.963 20 9.818 10.675 11.258 25 9.077 9.427 8.422 8.694 30 40 19.793 8.951 11.925 12.233 9.779 9.915 8.244 8.304 50 21.482 9.042 Worldwide Scientific Equipment is considering a cash acquisition of Medical Labs for $3.3 million. Medical Labs will provide the following pattern of cash inflows and synergistic benefits for the next 25 years. There is no tax loss carryforward. Use Appendix D as an approximate answer, but calculate your final answer using the formula and financial calculator methods. Cash inflow (aftertax) Synergistic benefits (aftertax) Years 1-5 6-15 16-25 $320,000 $340,000 $380,000 37,000 47,000 67,000 The cost of capital for the acquiring firm is 10 percent. a. Compute the net present value. (Negative amount should be indicated by a minus sign. Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Net present value
