Benton Music is considering investing $800,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $120,000 per year for the next ten years. Assuming that Benton Music uses a 12% hurdle rate, what is the net present value (NPV) of the studio investment? Is this a favorable investment? (Click the icon to view the present value of an annuity table.) (Click the icon to view the future value of an annuity table.) (Click the icon to view the present value table.) (Click the loon to view the future value table.) (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) The net present value of the studio investment is Reference to lesson studies that will have no residual value. The studios are expected t Present Value of Annuity of $1 Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 Period 2 2.775 1.970 1.942 1.913 Period 3 2.941 2.884 2.829 2.673 2.577 2.487 2.402 Period 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 Period 6 5.795 Period 7 6.728 Period 8 7.652 Period 9 8.566 Period 10 9.471 5% 6% 8% 10% 12% 0.962 0.952 0.943 0.926 0.909 0.893 1.886 1.859 1.833 1.783 1.736 1.690 14% 16% 18% 20% 0.877 0.862 0.847 0.833 1.647 1.605 1.566 1.528 2.723 2.322 2.246 2.174 2.106 2.914 2.798 2.690 2.589 3.433 3.274 3.127 2.991 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 Period 11 10.368 9.787 9.253 8.760 8.306 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 6.623 5.929 6.873 7.003 7.105 3.889 3.685 3.498 3.326 4.288 4.039 3.812 4.639 4.344 4.078 3.605 3.837 4.946 4.607 4.303 4.031 5.216 4.833 4.494 4.192 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 7.536 6.814 6.194 5.660 5.197 4.793 4.439 5.842 5.342 4.910 4.533 6.002 5.468 5.008 4.611 6.142 5.575 5.092 4.675 5.353 4.870 6.097 5.467 4.948 6.177 5.517 4.979 6.233 5.548 4.997 Print Done