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 M and 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 7 Project M Project N $ b-2. Which of the two projects should be chosen based on the NPV method? 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.) Project M Project N Net present value $ $ b-2. Which of the two projects should be chosen based on the NPV method? 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? ho O NPV method O Pay back method APPENDIX D Present Value of an Annuity of St. PV w-al terapie von Percent Period VE 12 1 12 5050 DET 097 LI SIT 1050 CLET 1113 19 090 1.570 2941 3.00 UNS 5.79 25 0.900 1942 2. 3.00 1713 5.1 6472 OS 103 2673 3,065 10 OSOS LT 2007 1170 0952 Lee 2.72 1506 129 5.826 ST 2 0905 1. 2021 37 100 3.717 2577 2012 2044 10 D. 1. 2.775 2.530 L152 5202 . 6.733 7.435 90 9 19 ZITT 06 IKE LIST LED 7 IEEE CULT F. 5.5 SASE CHEV 7. 7.722 6210 6. 7.60 7.27 3971 5515 7.004 7. 7.00 5.70 30 C710 2.1 SANT 5 50 . 16 GES 6. BI 7.100 70 OSZY GO M 1.29 5.712 5.417 210 7620 7.TIMS BO 935 0.05 10. 11.00 11. 12961 3.16 12754 1130 16 17413 15.00 23.115 2.730 2.745 9.100 ES BASI 30 2191 1471 H. 11 22.130 13006 1365 12 15. 16 172326 10 22.00 . 32335 39.150 7 10.575 113 12.10 12.30 115TH 10292 HEN 15.678 16151 19533 222996 27355 31424 9 10:56 11.11 11 12.1 12.66 11M 13 15692 17.20 30.72 21 CEG ICE 10.30 1038 11.274 11.890 12.085 12.00 1. 15.872 17.159 LZS 7.702 74 10.077 (1825 LIS 11.10 12.70 1165 15.08 15.2 9. 10.05 10:33 10.50 11.55 12.000 1312 13301 2000 3.818 os 125 2514 107 LE 115 12233 100 10 10 3051 2915 Period NEL Percent 18 199 NE BIU 070 2nd DUL CU 0.71 10 L. 2361 200 3.517 1. 2.600 1037 LOS 111 6.554 175 ORSS 1. sas 2.210 2.70 11 40% 0216 1220 T. 1.57 2105 21 12111 1.00 1512 2212 2914 to w NI WE ET WE CSEE ICE 09 2.105 20 16% 162 1.605 23:46 2. 1264 LARS LO B 1607 0768 1.361 TATE 2. 20 26 2005 Wit L410 1566 2.124 2. 3.12 3. LE LO cs La 4. 1963 FREE W ZELE BE WRC 1706 116 20 250 23 79 5. 5126 SO 4419 4.816 122 207 LIS 41 US 2. 2011 21 2.410 0.0001 14.12 16 10 11 12 1571 SOZ SIDE CE CHE 157 1772 50 234 5421 SS 5.728 5:40 sos 1ST LA 2615 ZES 1725 21 VIES 219 DOC 279 I'S S. 6.000 61 14 1611 C15 100 1910 5.000 52 5. 5.460 5.575 281 2478 361 4.675 2730 6000 930 16 19 18 19 IS 1992 SU 194 5. GO 011 6.574 7.100 7.250 7506 2.O 7.30 IL055 3.244 3304 22 15 3T 3510 05 32003 3.295 51954 02 120 6150 6250 6.64 6.640 6.900 7.625 200 5.70 5. ST 5192 20 2014 2306 2.500 254 25 6373 6162 6.550 6023 6.073 7.000 7.105 7.133 S2 3320 5.105 5475 5.534 5.58 5.00 5766 5.628 S.KTI SO 1992 SEET ZIT CHT BERT DICE TICE 5.273 $310 5:30 5.000 SE517 5.000 5.020 5.10 SI 5235 52 10 2150 195 SIE SE 3316 SES OC OP 59 5177 6.21 245 2.500 764 2675 B.AZ 6.65 1995 2000 3.000 2.000 2000 6257 267 666 155 HES 2502 2:50 APPENDIX B Present Value of S1, PV -Faro) - PV) Percent 65 Period 2 1 16 60 SOSD 1 900 000 0.971 0.61 0951 094 WE 1250 CHO 5160 SO 0851 0902 5% 000 0.007 OM 09 DAT 0Al6 IS 0901 0.812 0731 97 0911 D 0.772 0.708 C B% 0923 0.257 0.794 6.735 001 0.60 OS 120 KO 5 037 0.540 0.3% . 0871 0.05 0.713 0. 0.00 SRC CIU . 0.86 02 70 MO 0.731 0.200 0.67 750 0625 093 0.914 0.0 OSO 000 0.366 050 0.9 00 022 0.19 care UPO HYO ICO 10 0.909 O.RS 0.75 OS 0.621 0.550 05 0.467 22 0.36 0.350 0.119 0.290 023 0.29 0.21 190 BOSTO 10 11 12 13 14 20 BH 0. 0.773 WEB 0731 0.746 0.711 0.570 645 0.614 0.85 0.567 0.50 ELSOS 1481 B. 0.06 0416 11.00 0177 0.26 B.RO 30 0.792 0.747 0.705 . 0.627 . D. 0.527 0.497 0.469 04 417 0.79 0.171 0.350 1331 0.312 02 0174 0.097 0.054 0.079 11870 0.061 01151 0344 10 0.75 012 0317 0.20 0.29 0.220 0.200 00326 0.251 0.70 . 49 0.197 3 0.380 0.315 0.250 0.270 02.0 0.577 0.555 0.78 0.766 0.24 0.722 0.70 . 0661 M2 0623 0.605 0:57 0.570 0554 047 0.412 307 0228 0.275 16 17 6.723 . 12 0.231 WE 31 475 0.444 0415 38 02 B019 0317 0.95 0.277 0.250 0.184 0.131 0.067 0.004 0.170 0.15 CO 19 20 0.714 0.70 016 0.673 0.610 0.5 1453 0,372 TO 0.53 0.491 475 0.450 0375 0.30 2011 0.14 OM 164 0.149 100 0.70 0.72 0.67 . 0.194 0.17 0.115 0.000 0,032 0215 0146 0.194 0.016 0.021 0231 0.124 0.074 0.01 0.015 0.005 112 0.057 0.022 0.000 50 2900 003 Prod 0377 0.709 174 0.255 0.00 0.575 12 0.00 0.792 0.712 0.630 0.567 0.507 0452 0104 155 017 0.756 0.650 0.572 14197 0.42 0.3 0322 0.231 0.247 0.215 son 0,657 OL 0295 0.190 1 GUSO 10 COP CRO 02 057 CO STO 2316 195 DBS 07 . 0.63 0.540 0.48 0.425 0.370 0.333 0.295 0.261 0.231 0204 0.101 0.160 0.14 0.125 0.111 0.09 0.087 0.017 0. 0.000 0.000 10 11 12 13 10 15. 16 17 18 15 16% 0.362 0.763 0.641 0.502 0478 0410 0.354 0.305 29 0.22 0.196 0.168 01:45 01.24 0.100 0.00 0.000 0.000 0.00 0.051 0.24 0.012 OU 0.001 Percent 10% 195 200 25% 30% 40% 0.347 0.500 0.833 0.70 0.741 0.71 0718 9.- 0.89 0509 0.510 0.009 C2593 0512 45 0.406 0164 0515 0.699 0.410 0.250 0301 0.260 0437 049 0,320 0.200 0.223 03 12 0.262 0.207 0.165 012 1114 0.28 0,229 0.210 0.13 0.122 LOS 0.26 0.24 0.210 DIEN 0.123 0.001 0.225 0.000 0.299 0.194 0.134 00 191 0.048 017 162 0.102 0.07 0.005 016 0.135 D. 0.006 0037 0.137 0.025 0124 00 060 00 0.018 116 10 0.055 0033 0.000 . QUOIS 0.02 0.01 0.005 0.014 DIS 0.074 005 0.020 0.011 bore 0,054 006 LO 2015 DO . 0.008 0.00 0.0145 DO 0,05 0.012 005 0.044 0.003 0.030 0.000 0.005 Ozone 0.00 Lodz DOBI 0.014 G C 0.000 0.037 0.00 0.001 0.1126 0.012 0.005 OLIG 0.013 0.001 0.010 0.007 2005 0.004 0.001 0 1.001 0.001 0 0 0.392 0.519 DASS 0.600 0.15 0.300 0.220 0217 0.30 0.182 0.160 0.140 0.12 0.100 0.095 003 00173 0.038 20 0.15 0.14 0.123 0107 0.624 0.534 0.456 090 13 0.25 0.23 0.200 1 0,192 0.130 ON OS 0,00 0.069 0.009 GOST 003 0.000 0.009 100 0.39 205 016 1 0106 3.130 0.116 0.104 0.05 0.000 0.011 0,00 0.00 0.050 0.009 0.02 0.017 0.012 0.00 BLOGS LO 0.00 0.000 0.000 0.001 0600 mo 0.08 a. 0.031 0.000 0.061 0.000 OOLS 0.004 0.001 0.004 0.001 1000 0 0 0 0 0 O 5000 1000 0.001 www NEILE