\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline . & 45 & 5 & 6% & 79 & 8% & 9% & \% & 1% & 2% & 35 & 14% & 15% & 16% & 17% & 18% & 9% & 20% & 1% & 22% & 23% & 24% & 25% \\ \hline 1 & 0.962 & 952 & 0943 & 0935 & 926 & 917 & 009 & 901 & & 0855 & 877 & 0.570 & & 0.855 & 0847 & 0840 & 0.833 & 0.826 & 0.820 & 0.813 & 0806 & 0.500 \\ \hline 2 & 0.925 & 907 & 0.890 & 0.873 & 857 & 842 & 826 & 812 & BD & 0.783 & 0.769 & 0.756 & & 0.731 & 0.718 & 0.706 & 0.694 & 0.683 & 0.672 & 0661 & 0650 & 0.640 \\ \hline 3 & 0.859 & 0.864 & 0.840 & 0.816 & 799 & 0.772 & 51 & 0.731 & 712 & 0693 & & & 641 & 0624 & 0.609 & 0593 & 579 & 0564 & 0551 & 0537 & 524 & 0512 \\ \hline 4 & 0.855 & 023 & 0792 & 0763 & 0.735 & 0708 & 0689 & 0659 & 0636 & & & & & 0.534 & 0516 & -0 & 3 & & 0.451 & 0.437 & 0.423 & 0,410 \\ \hline 5 & & & & & & & & & & & 519 & & & & & 419 & 0 & & 0370 & & 0.341 & 128 \\ \hline 6 & & & & & & & 054 & 5 & 7 & & & & & on & & 0.352 & & & 0303 & & & 262 \\ \hline 7 & 760 & 211 & 606 & 623 & & 154 & 13 & 482 & 452 & 0,425 & 0.400 & & & & & 0.296 & & 263 & 0.249 & & & 210 \\ \hline 8 & 0.731 & 0.677 & 0627 & 0.582 & 540 & 0.502 & 0467 & 0.434 & 0.404 & 0376 & 0351 & 0327 & 0.305 & & 0.266 & 0.249 & 33 & 218 & 0.204 & 191 & 0.179 & .168 \\ \hline 9 & 0.703 & 0.645 & 0592 & 0.544 & 0.500 & 0.460 & 0.424 & 0391 & 0361 & & & 0. & 0.263 & 0243 & 0.225 & 0.209 & 0.184 & 2.180 & 167 & 0.155 & 0.144 & 1.134 \\ \hline 10 & 0.676 & 0.614 & 0558 & 0.50 & 0.463 & 0142 & & 0 & 0.3 & 0.2 & 0270 & 0 & 02 & 0.208 & 0.19 & 176 & & 1.149 & 137 & 0.126 & 0.116 & 2.107 \\ \hline II & 0.650 & 0.585 & 0.527 & 0 & & 0.38 & 0 & 0.3 & 0287 & 0.2 & 237 & 0. & 0.19 & 88 & 01 & 0148 & & 0.123 & 112 & 0.103 & 0.09 & 1086 \\ \hline 12 & 625 & 57 & 497 & 0.444 & & 03 & & 0.2 & & 0.2 & 0.208 & & 0.1 & & & 0.124 & & & 1092 & 83 & 0076 & 000 \\ \hline 13 & & & 4C & 4 & 365 & 0.3 & 0.2 & 0.2 & 03 & 02 & 0.1K & 0.1 & 01 & & & 0.104 & Woys & 84. & 1075 & 0.068 & 0.061 & 2005 \\ \hline 14 & 0.577 & 0.505 & 0.442 & 0.38 & 0.340 & 0.29 & 0.263 & 0.232 & 0.28 & 0.181 & 0.1 & 0.1 & 0.1 & 0.111 & 0099 & 0008 & 0.078 & 0069 & 0062 & 0055 & 0049 & 5.04 \\ \hline 15 & 0555 & 0.481 & 0.417 & 0.36 & 0.3 & 02 & 0.2 & 0.2 & 0 & 0.1 & 0 & 0.1 & 0.1 & 0.095 & 00 & 0074 & 00 & 0057 & 1051 & 0045 & 0.040 & 0.035 \\ \hline 16 & 0 & 0A & 0.39 & & 0. & 02 & 0.2 & 0.1 & 01 & 0.1 & 0. & 0.1 & 00 & 0081 & 00 & 062 & 0.054 & 0.047 & 042 & 016 & 0032 & 2028 \\ \hline 17 & 13 & 336 & 0371 & 0.317 & E0 & 0.23 & & 0.1 & 01 & 01 & 0. & 00 & 0.0 & 0.069 & 0060 & 0052 & 45 & 0039 & 0034 & 2030 & 2006 & 0023 \\ \hline 18 & & & 0.35 & 0 & 0 & 0.212 & 0.160 & 0.153 & 0.130 & 0.111 & 0095 & & 0.060 & & 00 & & & & 128 & 24 & 0021 & 2018 \\ \hline 19 & 475 & 0396 & 0.331 & 0.277 & 0.232 & 0.194 & 0.164 & 0.138 & 0.116 & 0.098 & 0.083 & 0070 & 0060 & & 0 & 1037 & & 0027 & 023 & 2020 & 0.017 & 2014 \\ \hline 20 & 0.456 & 0377 & 0312 & 0.258 & 0.215 & 0.178 & 0.149 & 0.1 & & 0 & 0 & & 0 & 43 & 0 & 0.031 & 0026 & 0022 & 5019 & 0016 & 0014 & 0.012 \\ \hline 21 & 0.439 & 0.359 & 0.204 & & 0.1 & 8 & & 0.1 & 00 & 0.0 & 0.0 & 00 & 01 & 0.037 & 0.0 & 0.026 & 1022 & 0.0 & 0.015 & 0013 & 0.011 & 0.009 \\ \hline 22 & & 03 & 0. & 0.2 & 0.1 & 0.1 & 0.1 & 0.11 & 00 & 00 & 0. & 00 & & 0032 & 0.026 & 0022 & 0018 & 0.015 & 0013 & 0.011 & 0.009 & 0.007 \\ \hline & & 0326 & 0.262 & 0.2 & 0.1 & 0.1 & & 00 & 0074 & 0000 & 0049 & 0.00 & 0.033 & 0027 & 0.022 & 0018 & 0.015 & 0012 & 0010 & 0.009 & 0.007 & 0,006 \\ \hline 2 & 90 & 0310 & 0.247 & 0.197 & 0.158 & 0.126 & 0.102 & 0002 & 0066 & 0053 & 0.043 & 0035 & 0028 & 0023 & 0019 & 0015 & 0.013 & 0010 & 0.008 & 0.007 & 006 & 0.005 \\ \hline 25 & 375 & 0.295 & 0.233 & 0.184 & 0.146 & 0.116 & 0092 & 0.074 & 00059 & 0.047 & 0.038 & 0,030 & 0024 & 0020 & 0.016 & 0013 & 0010 & 009 & 0007 & 2006 & 0005 & 0.004 \\ \hline 26 & 361 & 0.281 & 0.220 & 0.172 & 0.135 & 0.106 & 0084 & 0006 & 00053 & 0042 & 0.033 & 0026 & 0021 & 0017 & 0014 & 0011 & 0000 & 0007 & 0.006 & 2005 & 004 & 0003 \\ \hline 27 & 0.347 & 0.268 & 0.207 & 0.161 & 0.125 & 0098 & 00 & 006 & & 00 & & 0023 & 001 & 0014 & 0 & 0009 & 97 & 16 & 0.005 & 0004 & 1003 & 0.002 \\ \hline 28 & 333 & 0.255 & 0.196 & 0.150 & 0.1 & & 00 & 00 & 00 & 00 & 0. & 0.020 & 0. & 0012 & 0010 & 0.004 & 0006 & 0005 & 0004 & 0.003 & 0002 & 0002 \\ \hline 29 & 21 & 0.243 & 185 & & 0.11 & 00 & 00 & 00 & 0037 & 0.029 & 0022 & 0017 & 0014 & 0011 & 0.008 & 0006 & 0.005 & 0.004 & 0.003 & 0002 & 0.002 & 0.002 \\ \hline 30 & & 02 & & & 0000 & 0075 & 0057 & 0044 & 00033 & 0026 & 0020 & 0.015 & 0012 & \begin{tabular}{|c|} 0009 \\ \end{tabular} & 0.007 & 0005 & 0.004 & 0.003 & 0003 & 0002 & 0002 & 0.001 \\ \hline 40 & 1,208 & 0.142 & 0.097 & 0.067 & 0.045 & 0032 & 0022 & 0015 & 0011 & 0008 & 0005 & 0.004 & 0.003 & 0.002 & 0.001 & 0.001 & 0.001 & 0.000 & 0,000 & 0.900 & 0000 & 0000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline Periods. & 4% & 5% & 6% & 75 & 8% & 95 & 10% & 1% & 12% & 13% & 4% & 15% & 16% & 17% & 18% & 19% & 20% & 21% & 22% & 23% & 24% & 25% \\ \hline 1 & 0.962 & 0.952 & 0.943 & 0.935 & 0.926 & 0.917 & 0.909 & 0.901 & 0.893 & 0.885 & 0.877 & 0.870 & 0.862 & 0.855 & 0.847 & 0840 & 033 & 0.826 & 0.820 & 0.813 & 0.806 & 0.800 \\ \hline 2 & 886 & 1.859 & 1.833 & 1808 & 783 & 1.759 & 1.736 & 1.713 & 1690 & 1668 & 1647 & 1626 & 1.605 & 1.585 & 1560 & 1547 & 1528 & 1509 & 1.492 & 1.474 & 1.457 & 1460 \\ \hline 3 & 2.775 & 2.723 & 2.673 & 2.624 & 577 & 2531 & 2.487 & 2444 & 2.402 & 2361 & 232 & 2283 & 2246 & 2210 & 2.174 & 2.140 & 2.106 & 2074 & 2042 & 2011 & 1.981 & 1952 \\ \hline 4 & 3.620 & 3546 & 3.465 & 3,387 & 3.312 & 3240 & 3.120 & 3.102 & 3037 & 2974 & 2914 & & 2.798 & & & 2639 & 2559 & 2540 & 2494 & 2.448 & 2.404 & 2.362 \\ \hline 5 & 4.452 & 4329 & 421 & 4.100 & 100 & 3.590 & & 3.696 & 3605 & 3517 & 3.433 & 3352 & 3.274 & 3.199 & 3127 & 3005 & 2991 & 2.926 & 2864 & 2803 & 2745 & 2089 \\ \hline 6 & 5,242 & 5:076 & 4917 & 4.767 & 4.62 & 4486 & 4355 & 4.231 & 4.111 & 399k & 3859 & 3.784 & 3.685 & 3.589 & 3.498 & 3,410 & 3.326 & 3.245 & 3.167 & 3.092 & 3000 & 2951 \\ \hline 7 & 6002 & 5.786 & 5582 & 5389 & 5.206 & 5033 & 4.868 & 4.712 & 4.564 & 4,423 & 4288 & 4.160 & 4039 & 39m & 3.812 & 3.706 & 3.605 & 3505 & 3,416 & 3.327 & & 3.161 \\ \hline 8 & 6. & 463 & 6.210 & 597 & 57.7 & 53 & 533 & 5.1 & 4x & 4.799 & 46 & 44 & 4344 & 4.207 & 78 & 3,954 & 3.837 & 3.726 & 3.619 & 3518 & 3.421 & 3329 \\ \hline 9 & 35 & 7.10s & 680 & 6515 & 624 & 59 & 5.75 & 55 & 5.328 & 5.132 & 49 & 47 & 4607 & 4.451 & = & 4.163 & 4031 & 3505 & 3.786 & 3.673 & 3566 & 3.463 \\ \hline 10 & 8.111 & 7.722 & 7360 & 7024 & 6.710 & 6.418 & 6.145 & 58x & 5650 & 542 & 5216 & 50 & 4833 & 4659 & 4 & 4339 & 4.192 & 4054 & 3923 & 3.799 & 392 & 3571 \\ \hline 11 & 8.760 & 8306 & 7887 & 7A9 & 7.139 & 6.805 & 6.495 & 6297 & 5938 & 5697 & 5.453 & 5.234 & 5.029 & 4836 & 4. & 4.486 & 4327 & 4.177 & 4035 & 3902 & 3.776 & 3.656 \\ \hline 12 & 85 & 8.863 & 83 & 7.9s & 753 & 7.1 & 0 & 6.4 . & 6.1 & 59 & 5.6 & 5. & 5197 & 49 & 3 & 4.611 & 4439 & 4278 & 4.127 & 3.985 & 3851 & 3.725 \\ \hline 1.3 & & 9394 & 8.853 & 8.358 & 790 & 7.487 & 7.103 & 6.750 & 6.424 & 6.122 & 5842 & 5583 & 5342 & 5.118 & & 47 & 4533 & 4362 & 4.203 & 053 & 3912 & 3.700 \\ \hline 14 & 10563 & 9.599 & 9295 & 8.745 & 8.244 & 7786 & \begin{tabular}{l} 7367 \\ \end{tabular} & 6982 & 6628 & 6.30 & 6002 & 5.724 & 5.468 & 5229 & 5 & 4802 & 4611 & 4432 & 4.265 & 100 & 3962 & 3824 \\ \hline 15 & .118 & 10.350 & 9712 & 9.10x & 8559 & 8061 & 7606 & 7.191 & 6811 & 6.4 & 6.142 & 3847 & 55 & 5324 & 50 & 4.876 & 73 & 89 & 4315 & 53 & 4001 & 3.859 \\ \hline 16 & 652 & 10838 & 10.106 & 9.447 & 851 & 8313 & 724 & 7379 & 6.974 & 6.004 & 62 & 593 & 5.668 & 5405 & 5.162 & 4938 & 4730 & 4536 & 4357 & 1.189 & 4033 & 3857 \\ \hline 17 & 166 & 11274 & 10477 & 9763 & 9.122 & 8.544 & 802 & 7549 & 7.120 & 6.720 & 6373 & 6047 & 5749 & 3475 & 5.222 & 4 Who & 4.773 & 4576 & 4391 & 4.219 & 4.059 & 3.910 \\ \hline 18 & 659 & 11.690 & 1028 & 10059 & 9.372 & 8.756 & 8.201 & 7.702 & 7250 & 6340 & 6.467 & 6.128 & 5818 & 5334 & 5273 & 5033 & 4812 & 4.608 & 4.419 & 4,243 & 4050 & 3.928 \\ \hline 19 & 134 & 2085 & 15x & 10.336 & 9604 & 8.950 & 8.36 & 7839 & 736 & 69 & 6550 & 6.108 & 5.877 & 5584 & 5316 & 5020 & & 4635 & 4.442 & 4.263 & 4097 & 3.942 \\ \hline 20 & 590 & 12.462 & 11.470 & 10594 & 9818 & 9129 & 8514 & 7961 & 7409 & 7025 & 6623 & 6.259 & 5929 & 562 & 5353 & 01 & 4870 & 5 & 4460 & 4279 & 4.110 & 3954 \\ \hline 21 & 1009 & 1221 & 1176 & 1016 & 10017 & 9.292 & 8600 & 8075 & 7562 & 7.102 & 6857 & 6312 & 5973 & 5065 & 5.384 & 5.127 & 4891 & 4675 & 4.476 & 402 & .121 & 3.963 \\ \hline 22 & 14.451 & 13.163 & 12042 & 11061 & 10201 & 9.442 & & 8.176 & 7605 & 7170 & 6.743 & 6359 & 6011 & 5696 & 5.410 & 5.149 & 4900 & 4600 & A.ARB & 4302 & 4.190 & 3970 \\ \hline 23 & 1457 & 13.459 & 12.03 & 11.272 & 10,371 & 9550 & B.803 & 8.260 & 7.718 & 7230 & 6792 & 6.399 & 6014 & 5.721 & 5412 & 5.67 & 4923 & 4.703 & 4A00 & 4311 & 4137 & 3976 \\ \hline 24 & 247 & 13.79 & 12550 & 11.400 & 1520 & 9.707 & 8.985 & K. 3.48 & 7.74 & 7253 & 6835 & 6.434 & 6073 & 5.746 & 5451 & 5.182 & 4.937 & 4.713 & 4507 & 4318 & 4.143 & 3981 \\ \hline 25 & 622 & 14004 & 12.763 & 11.654 & 1675 & 923 & 9977 & 8.422 & 7.43 & 7330 & 6.173 & 6.464 & 6097 & 5.766 & 5.467 & 5.105 & 4948 & 4.721 & 4514 & 4.323 & 4.147 & 3985 \\ \hline 26 & 963 & 14375 & 13,003 & 11.526 & 1010 & 9.929 & 9.61 & 8.4kB & 7.806 & 7372 & 6.906 & 6.491 & 6.118 & 5.783 & 5,400 & 5.206 & 4956 & 4.728 & 4520 & 4.328 & 4.151 & 3.988 \\ \hline 27 & 16,390 & 14.643 & 13.211 & 11.987 & 10.935 & 10027 & 9.237 & 854x & 7943 & 7.409 & 6935 & 6514 & 6.136 & 5,798 & 5.492 & 5.215 & 4964 & 4.734 & 4.524 & 4.332 & 4.154 & 3,990 \\ \hline 28 & 16663 & 14.898 & 13.406 & 12.13 & 11.051 & 10.116 & 9.307 & K6002 & 7984 & 7.441 & 6961 & 6534 & 6.152 & 510 & 5.502 & 5.223 & 4970 & 4.739 & 4.528 & 4.335 & 4.157 & 3992 \\ \hline 29 & 16994 & 15.141 & 13591 & 12.278 & 11.158 & 10.198 & 9370 & 8650 & 8022 & 7470 & 6983 & 6551 & 6.166 & 5820 & 5.510 & 5229 & 4.975 & 4.743 & 4531 & 4.337 & 4.159 & 3994 \\ \hline 30 & 17.292 & 15.372 & 13.765 & 12.409 & 11258 & 10274 & 9427 & 8.694 & 8055 & 7.496 & 7003 & 6566 & 6.177 & 5.529 & 5517 & 5.235 & 499 & 4.746 & 4534 & 4339 & 4.160 & 3995 \\ \hline 40 & 19.793 & 1159 & 15046 & 13.332 & 1325 & 10.757 & 9.779 & 8.951 & 8.244 & 7.634 & 7.105 & 6.642 & 6.233 & 5.871 & 5548 & 5.258 & 4997 & 4.760 & 4.544 & 4347 & 4.166 & 390 \\ \hline \end{tabular} Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division's return on investment (ROI), which has been above 23% each of the last three years. Casey is considering a capital budgeting project that would require a $5,510,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company's discount rate is 19%. The project would provide net operating income each year for five years as follows: Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor(s) using tables. Required: 1. What is the project's net present value? 2. What is the project's internal rate of return to the nearest whole percent? 3. What is the project's simple rate of return? 4-a. Would the company want Casey to pursue this investment opportunity? 4-b. Would Casey be inclined to pursue this investment opportunity