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Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $318,302, would have a useful life of 7 years, and would have

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Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $318,302, would have a useful life of 7 years, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $83,500 per year. The internal rate of return on the investment in the tractor-trailer is closest to (Ignore income taxes.): Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided. HIBIT 72-1 Present Value of State 7 riods 45 5% 6% 7% 8% 9% 10% 11% 12% 135 1% 15% 169 17% 18% 19% 20% 275 22% 23% 24% 25% 1 0962 0.952 0943 0935 0.926 0917 0.909 0901 0.893 0885 0.877 0.870 0862 0.855 0.847 0840 0.853 0.826 0820 0.813 0806 0.800 2 0925 0.907 0890 0 873 0857 0.842 0826 0812 0.797 0783 0.769 0756 0743 0731 0718 0706 0694 0683 0672 0661 0650 0640 3 0889 0.864 0 840 0.816 0794 0772 0751 0731 07120693 06750658 0641 0624 0609 0593 0.579 0564 0551 0537 0524 0512 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0659 0.636 0613 0.592 0.572 0.552 0.534 0.516 0499 0482 0.467 0.451 0.437 0.423 0.410 5 0822 0.784 0747 0713 0681 0650 0621 0593 0.567 0543 0519 0.497 0.476 0456 0437 0419 0402 0.386. 0.370 0355 03410328 6 0790 0.746 0705 0666 0630 0596 0564 0535 0507 0.480 0456 0.432 0410 0.390 0370 0352 0335 0.319 0.303 0289 0275 0262 0760 0711 0665 0623 0.583, 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0354 0.333 0.314 0296 0279 0263 0249 0235 0222 0210 8 0731 0677 0627 0582 0540 0502 04670434 0404 0376 0351 0327 0305 0285 0 266 0249 0233 0218 0204 0191 01790168 9 0.703 0645 0592 0544 0.500 0.460 0.424 0391 0361 0333 0308 0.284 0263 0.243 0225 0209 0194 01800167 0155 0144 0134 10 0.676 0.614 0558 0.508 0.463 0.422 0386 0.352 0322 0295 0.270 0.247 0227 0208 0191 0176 0162 0.149 01370126 0116 0107 11 0650 0585 0527 0475 0429 0.388 0350 03170 287 0261 0237 02150195 0178 0162 018 0135 0123 0112 0103 0094 0086 12 0.625 0557 0.497 0.444 0.397 0.356 0.319 0286 0257 0231 0208 0.187 0168 0152 0.1370124 0112 0.102 0.092 0.083 0076 0.069 13 0601 0530 0469 0415 0.368 0.326 0290 0258 0229 0204 0182 0163 0145 0130 0.116 0104 0093 0084 0075 0.068 0061 0055 0577 0505 0442 0388 0340 0799 0263 0232 0205 0181 0160 0141 0125 0111 0099 008 0078 0069 0062 0055 0049 0044 15 0.555 0 481 0417 0.362 0.315 0275 0239 0209 0.183 0160 0140 0.123 0.108 0.095 0.084 0074 0.065 0.057 0.051 0.045 0.040 0.035 16 0534 0458 0394 0339 0292 0252 0218 0188 0163 011 012301070093 0081 0071 0062 0054 0047 0042 0036 0032 0028 12 0513 0.436 0371 03170270 0231 0198 01700146 0125 0108 0093 00800069 0060 0052 0045 0039 0034 0030 0026 0023 18 0.494 0.4160350 0296 0.250 0.212 01800153 0.1300111 0.095 0.081 0.069 0.059 0051 0044 0.038 0.032 0.028 0.024 0.021 0.018 19 0475 0.396 0331 0277 0232 0194 0164 01380116 0098 00R3 0070 0060 00510043 0037 0031 0027 0023 0020 001700M 20 0456 0377 0312 0258 02150178 014901240104 0087 0073 0061 0.051 0.043 0037 0031 0026 0022 00190016 005 0.012 21 0439 0359 0294 0 242 0199 0164 013501120093 0077 0064 0.053 0044 0.037 0031 0026, 0022 0018001500130011 0009 22 0422 0342 0278 0226 0184 01500173 01010083 0068 0056 0046 008 0032 0026 002200180015001100100090007 23 0.406 0326 0262 02110170 0138 0112 00910074 0060 0049 0040 0033 0.027 0.022 001800150012 0010 0009 0.007 0006 24 0.390 0310 0247 0197 0158 0126 0102 0082 0.066 0053 0043 0.035 0.028 0.023, 0019 0015 0013 0010 0008 0007 0005 0005 25 0375 0295 02330184 016 0116 0092 007 0059 0047 008 00300024 00200016 001300100009 0007 0006 0005 0004 26 0361 0281 0220 0172 01350106 0084 0.066 0.053 0042 0033 0.025 0.021 0.01 0.014 000 0009 0007 0.006 0.005 0004 0.003 27 0347 0268 0207 0161 0125 0098 0076 0060, 0047 0037 0029 0023 0018 004 0011 0009 0007 0006 0005 0004 0001 0007 28 0313 0255 0196 01500116 0090 0069 0054 0042 0033 0026 0020 003 0012 0010 0008 0.006 0005 0004 0003 0.002 0007 032102430185 0141 0107 0082 0063 0048 0037 0029 0022 0.01 0.014 0011 0008 0006 0005 0004 0003 0.002 0.002 0002 0308 0231 8174 0131 0097 00750057 000 0033 0026 002000150012 0009 0007 0005 0004 0003000300020002 0001 40 0208 0120097 0067 004 002 0122 001S0011 000 000 0004 0003 0002 000100010001 0000 0000 0000 0000 0000 EXHIBIT 70-2 Present Value of an Annuity of $1 in Arrears seriods as 5% 6% 7 8% 9% 10% 11% 12% 13% 14% 15% 16% 19% 20% 21% 22% 23% 25% 1 09620952 0943 0.935 0.926 0917 0.909 0.901 0.893 0.885 0877 0.870 0.862 0.855 0.847 0840 0.833 0.826 0.820 0813 0.806 0800 2 1886 1859 1833 1 RON 1783 1759 1736 1713 1690 1668 1647 1626 1605 1585 1566 1547 1528 1509 1492 1474 1457 1.440 2775 2723 2673 2624 2577 2531 2487 2444 2402 2.361 2322 2283 2246 2210 2174 2MO 2106 2074 2042 2011 1981 1952 4 3630 3546 3.465 3.387 3.312 3240 3.1703102 3.037 2.974 2914 2.855 2798 2743 2690 2639 2589 2540 2494 2448 2404 2362 5 4.452 4329 4212 4100 3.993 3890 3.791 3696 3.605 3.517 3433 3.352 3 274 3199 3.127 3058 2991 2926 2864 2803 2.745 2689 6 5242 5076 4917 4767 4623 4486 4355 4231 4111 3.998 3889 3784 3685 3589 3.498 3.410 3326 3245 3.167 3092 3.020 2951 7 6002 5786 5.582 53895 205 5033 4868 4712 4564 4423 4288 4160 4039 3922 3.812 3.706 3605 3.508 3.416 3327 3.242 3161 8 6733 6.463 6.210 5.971 5,747 5535 5335 5146 4968 4799 4639 4487 4344 4 207 4078 3.954 3837 3726 3.619 3518 3.421 3329 9 7435 7108 6.802 6515 6247 5995 5759 5537 5328 53324946 4712 4607 4451 4303 4163 4031 3.905 3.786 3673 3.566 3.463 10 8111 772273607024 6710 6.418 61455.889 5650 5.426 5216 5.019 4833 4659 4494 4339 4192 4054 3.923 3799 3.682 3571 8760 8306 78877499 7139 6 805 6.495 6 207 5938 5687 5453 5234 5029 4836 4656 4486 4327 4177 4035 3902 3776 3656 93858863 8384 7943 7536 7161 6814 6 492 6194 59185660 5421 5197 4988 47934611 4439 4278 4127 3985 3851 3725 3 9 986 9394 8853 8358 7904 7487 7103 6750 6 424 6122 58425583 5342 5118 4910 4715 4533 4362 4203 4053 3912 3780 14 10563 9899 9295 8745 8244 7786 7367 692 6628 6 302 6002 57245 468 5229 5008 4 802 4611 4432 4265 41083962 3824 15 1118 10 3809712 910 8559 8061 7606 7191 6 811 6462 612 5847 5575 5324 5092 4876 46754489 43154153 4001 3859 16 11652 10838 10106 9447 8851 8313 7824 7379 6974 6,604 6 265 5.954 5668 540551624938 4730 4.536 4357 41894033 3887 17 12 166 11274 10477 9763 9122 8544 8022 75497120 6729 6373 6.047 574954755222 4990 4775 4576 4391 4219 4059 3910 TR 12 659 11690 10828 10.059 9 372 8756 8 201 7702 7250 6840 6 467 5128 5818 553452735033 48124608 4419 424340803928 19 13134208511158 10336 9604 8950 8365 78397366 6938 6550 5198 5877 5584 516 5070 4843 4635 442 4260 4097 392 20 13.590 12.462 11470 10.594 9818 9129 854 7963 7.469 7025 6623 6.259 5.929 5628 5353 5101 4870 4657 4460 427941103954 21 14.029 12821 11764836 10.0179292 8649 8.075 7562 7102 6681 6.3125973 5665 5.384 51274891 46/5 4.476 42924121 3963 22 1445113163 12042 11.061 10.2019 442 8.712817676457170 6743 5.359 60115695 5.41051494909 4690 4488 4 302 41303970 23 14857 13 489 12.303 11.272 10379580 8883 8266 7.718 7230 6792 5.399 6:044 5123 5432 5.17 4925 4.703 4499 431 43/3976 15247 3799 255011469 10.529 9707 89858.348 774 7283 6835 6.434 6073 5.746 5.451 582 4937 4/3 4507431441433981 15622 1094 1274311654 1675 9823907842278437330 6873 6.4646097 5766 5467 5.1954948 4721 4514 4323 454/3985 15983 1375 13003 11826 10810 9929 916184887896 7372 6906 6491 6118 5783 5480 5206 4956 4728 4520 43284151 3R 27 16.330 4613 3711 1987 1935 60027 923785487943 7409 6935 6540 6135 578 5492 5215 4964 4734 4524 433 4154 3990 16662 89813006 207 11051 116 9307 8602 7984 7441 6961 6534 6152 5810 5502 5773 4970 4739 4528 4335 4152 3992 1698415141' 591 278 11158989370 R650 8022 7470 6983 6551 6166 5820 5510 529 4975 4743 4531 4337 41543994 30 1729215372 13765 400 11258 77494778694 8055 7896700265666177 5879 551752354979 4716 4534 4379 4160395 1979317159 150461 112 11925 0757 97798951 824 762 71056642 623 58715 548 5258 4997 4760 45M 4307 466 3999 Multiple Choice O 17% O 15% O 18% 20%

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