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Calculate NPV! use present value tables in Appendix 13B Cost of new equipment (4-year life) $275,000 Net annual cash receipts $120,000 Overhaul equipment at end
Calculate NPV! use present value tables in Appendix 13B Cost of new equipment (4-year life) $275,000 Net annual cash receipts $120,000 Overhaul equipment at end of year 3 $40,000 Salvage value of equipment $65,000. Required rate of return 20% 1 9 | Periods 4% 5% 6% 7% 8% 9% 10% 1% 12% 13% 14% 5% 16% 7% 18% 19% 20% | 22 10.962 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 0.840 0.833 v.dzy 0. 2 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.31 0.718 0.706 0.694 0.683 0. 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0. 10.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0. 10.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0. 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0. 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0. 8 10.31 0.67 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0. | 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0. 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0. 10.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0. 2 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.28 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0. 10.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0. 10.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0160 0.141 0.125 011 0.099 0.088 0.078 0.069 0. | 0.555 0.481 0.47 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0. | 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0. 10.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045 0.039 0. 18 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.11 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0. 10.475 0.396 0.331 0.277 0.232 0194 0.164 0.138 016 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0. 0.456 0.377 0.312 0.258 0.25 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0. 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0. | 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0. 23 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0. nnnnnnnnnnnnnnnnnnnnce nnnnnnnnnnnnnnnnnnnnnnnn
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