Britney Javelin Company is considering two investments, both of which cost $40,000. The cash flows are as follows: Use Appendix B and Appendix D. Year 1 2 3 Project M $18,000 . 22,000 10,000 Project N $17,000 22,700 15,000 a. Calculate the payback period for project Mand project N. (Round the final answers to 2 decimal places.) Project M Project N Payback period years years b-1. Calculate the NPV for project M and project N. Assume a cost of capital of 12 percent. (Round "PV Factor" to 3 decimal places. Round the intermediate and final answers to the nearest whole dollar.) Net present Value Project M Project N A A b-1. Calculate the NPV for project Mand project N. Assume a cost of capital of 12 percent. (Round "PV Factor" to 3 decimal places. Round the intermediate and final answers to the nearest whole dollar.) Net present value $ Project M Project N $ b-2. Which of the two projects should be chosen based on the NPV method? ws O Project M O Project N O Both c. Should a firm normally have more confidence in answer derived based on NPV method or Payback method? O NPV method Pay back method APPENDIX B Present Value of 51,1V W-W - FV1+ Period 1 3 45 1 Percent 5% 090 29 980 0.951 7 1250 10 SEO 000 1250 SO 2160 CHO 0901 QUEZ 0.500 0,50 DAY 000 0915 OBES 0.06 0. 09 0.951 1042 0911 5% . 00 0.5 23 7 07 0.711 0.677 DET 0810 0.763 0.718 OAST 0794 07 ON 151 OS ID VO 6 0.70 0.76 BASS 2 0.700 20 0.731 0.22 0.67 GO 0.772 0.70 DO 05 0.56 lar 1950 BO OSO 0.64 5050 03 0.5 0.544 sos 1.475 OMO 0.00 . 0510 500 D. 0.0 0.19 0.157 0.024 0614 SAS 12557 LET B92 0.55 UNT 0.197 . 040 0417 WO 10 11 12 13 14 15 16 17 0.744 0.72 0.01 0.611 0.86 0,512 CICO DU 0319 OO 0.198 035 SIPS 0.71 O.RS 0.83 9.620 . 0.773 0.750 0.73 07 0.714 700 . . 0510 0.552 3.0 . 555 20 OPCO SICO 0275 UXO BETO PESO CISO . DNT 70 06 DAS 1144 6 0320 0.00 070 0.72 0,672 0. WO 362 300 0317 LES 562 0.570 0.210 19 2494 0270 0.250 19 20 1. ES 036 0.416 36 02177 0.255 023 SA SU 0.371 350 3.131 0.312 0.213 0174 11.097 0054 FO SITO 90 231 0.212 196 0.17 115 0.07 0.154 010 0.375 OC 0.25 0154 13 08 0412 307 0.220 05 1 02120 . . DOIS 0.005 012 000 0.00 0001 0.200 0.14 0.057 02 0.00 CHU 0.00 0.011 Perd 123 SEI COD 097 0670 0.76 0.00 0.712 20 090 WO OSED 0.567 0.507 0.45 20 SEO ZO 0.000 0.36 0123 DULU 02 0.600 0.00 0513 0.400 9.43 0.370 0.333 0.295 0.261 0.231 0204 GI 0.160 0.101 012 0.111 0. 0.087 0.047 0.008 0.009 01.29 0.700 0.75 BB 0510 DAS 0.00 0351 OLVO 0.270 0237 0.28 0.11 0.160 0.140 0.12 0.100 . 0.03 0.073 0.03 0.000 0.005 0.001 Pero 16517% 18% 196 205 OM 0.53 0.47 0.60 Son DRES 070 9.000 70 74 0.71 0.718 H 0.66 0.00 EL 0.01 0.600 0.12 OS 0.009 6510 444 0.579 0513 . 0.552 0534 0.45 OSLS 354 0.699 0.410 475 0.458 20 0437 0.419 20 EL 0.410 0290 0.370 352 02 0.134 20 OT Q.165 0314 Q 0.236 0210 0.25 0.26 0.122 a. 0.000 . 0.16 0263 0.20 . 0.225 02 1N 0.15 0.32 0.054 0.200 191 0.005 195 0:17 1673 OIT Dona 0162 015 DIS GON 0.00 2016 0.056 0.132 0.00T Us 0.112 . 0124 OO 0.145 0.00 0.130 0.10 0.00 2,083 0.125 0.005 0.111 033 08 230 GUDOS DOC LO 0.033 O. OOLS 2.00 D. 0.005 Dom 0,07 0.01 00 0.00 2060 BO 2005 0. COM 0.000 0012 USI DO 0.05) 0.00 LOCS 0.00 0.00 LOR D. DO 014 2002 . 9.051 0.024 0.00 0.01 0.000 0.010 0.012 0.00 . 0.000 0.007 0.004 0.001 0.000 3.00 0001 0.001 0 0 0 D 497 0.43 0.376 0427 0294 0.247 0.215 0.1 0.18 0.16 0.123 100 0.033 0.051 0.070 0.061 D. 11 12 D 14 15 16 17 10 19 20 TO It SRUT 0000 BIO SOTO 0.18 0163 146 0.13 0.116 0.104 200 re Sie Lond ons 10 Sien DO Dog 2900 Hoo 00 GOOD or 4000 COMO 0.012 00 OL 01 TIDO TO 900 Core 1100 CODO 015 SOTO TOO 0 2000 0.001 0.00 NES APPENDIX D Presentase of an Annuity 1.7. - w-ul de- y - Perted IX NE vo 10 0650 OLST 0.971 1.913 192 2. 3.00 0952 LI 2723 156 2. 2.775 2.0 Percent 65 0903 DI 23 3.05 212 LIT 09 1.000 2.624 925 1.78 2572 6060 SET 100 CIT 21 3.502 CSS 59 1720 SIE L75 2.531 130 1. PET 2. 117 2791 2004 2100 19 CIL 100 3.717 500 5.412 6210 7.000 520 5.076 4.100 1921 7 SE ETT 2 903 SERE 12 TS 7435 111 DIV CONV SHES 5.525 59 7.100 412 ET 5597 10 11 13 7. 7:17 165 5971 6.IS 7.000 7. 7.943 23 3.071 105 11255 12.13 11.00 SS 37 710 7.11 78 7.04 10 3.25 1954 10 11. 11. 1 SA SER 07 7.161 TR 7.100 750 STAV 15 PIC TH HT 3061 7. 7.01 VIEW 16575 11:30 12.100 129 1357 163 1 15.678 1635 18523 22 27.355 31.424 7.191 737 7.505 BASI 122 52372 N.SE 16 17:34 18. 1.750 US 06 10 11.11 11 121 12.50 13.11 13.00 15.02 17212 10. 21. ELAS 125 3.712 10.106 16.77 10.128 11.158 11.070 12.7 13.765 15.00 15.762 201 7.700 10 10. 11.276 11.00 12 12.00 IUM 15.372 17.150 126 10 47 11. 10.059 10.30 10.550 11 ASE 12.109 132332 13.30 1157 17.413 1. 1.115 25.730 7.100 75 25.000 BAS 9.1 10.675 12 11.525 12.233 450 2125 23 1027 10757 10 2514 5.077 9.00 2.779 9915 RAH 061 2016 Period 12 so 1. 2-402 BLAS . 2.1 2254 1517 14 ORT 1647 2:22 2014 LU 15% 70 1.6 22 RSS 1452 3781 4.10 1846 Ore LAOS 2246 2.2 207 LES 17 DASS 1.SAS 2.210 2.741 3.190 3.500 1922 355 0.741 1. 1. 1.987 2320 235 2.50 404 0.714 1.324 1.S 1,609 20 2.16 22 SUE 1.111 1.2007 1.6 1.27 1024 WE C 50 SOP PET 2017 ISE 46 . 2. 2. 10 11 12 SI 5 ST 5.91 6.122 4772 501 8.214 5421 55 724 U? RS 5. S. ULTE 16 19 WS VIES IGE 199 1299 2012 2414 CAS Percent 19194 017 00 1.566 1.57 2.12 2.166 2.60 2010 3.127 LOS 39 3.410 1012 170 1078 Llo 2 LUM 2 41 4910 715 3.000 6.000 SOKE $100 5222 20 5273 5.000 5316 5.000 510 5:46 195 5.517 5.235 5. 3150 3262 20629% 30% RA NO 0765 1.50 1.440 1.161 2.105 18 2. 21 2.16 2.991 2016 126 2.951 2. 2161 20 337 112 10 L 1019 12 1.571 11.02 1656 114 2.735 190 1.700 12 3.821 1219 3 3.26 47 31.12 1200 4.275 3.900 1.295 2012 32920 330 0.333 2012 2311 1.820 3.95 3.3116 1.985 1129 38993 3.10 3803 19 1. 1977 15 24 14 15 16 12 2010 1.993 TIS SOT 1591 SAU 575 5. 5.249 5:43 56 SM 6.00 12 6205 0373 6.467 6550 6.623 6873 7.00 7.105 7.13 CL 6974 7.100 7.250 7.00 7. 7.80 21TB 2A 20 3554 2012 120 BCS ST 5.220 5124 5.000 5.675 SS 5356 28 2715 2.752 277 2.799 2014 2015 2.3 230 23 250 200 2.1 2852 2.7 2854 08 6.79 6.5.10 6.500 7.005 7100 75 7.63 7675 1.997 1990 19 tos 5.87% 5328 LICE LU 8055 6.259 6464 6. 5. 6.661 2.1 29 2497 2.1 225.00 2.500 2.500 5.177 523 20 24 30 1999 1.99 2.000 2.000 2000 2.000 " 265 5.7 5. 2000 CONER PER D Por
