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CAPITAL BUDGETING CASH FLOWS GEO Labs is evaluating the acquisition of a light truck that will increase the speed and amount of area serving. The

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CAPITAL BUDGETING CASH FLOWS GEO Labs is evaluating the acquisition of a light truck that will increase the speed and amount of area serving. The acquisition of this light truck at a cost of $100,000 will result in earnings before depreciation and taxes of $34,000 in years 1 to 3, and $14,500 in years 4 to 6. The company tax rate is 30% and cost of capital is 10% (REMEMBER TO USE TABLES 12-11 AND 12-12) PRESENT YOUR ANSWER ROUNDED TO ZERO DECIMAL PLACES AND DON'T USE COMMA SEPARATORS HOW MUCH ARE THE CASH FLOWS IN YEAR 2 Present Value o OT Future Value of a Lump Sum Present Value of a Lump Sum Future Value of an Annuity Present value interest factor of $1 per period at i% forn periods, PVIF(in). Period 1% 21 361 481 5% 6 7% 881 9% 10% 11312313413 16% 17% 18% 19% 20% 000 130 097 02062 143 0935 20 17 000 Ft 003 BS 0.677 03370082 0.655 08470840 0.633 0.980 0.951 0.943 0.925 OSOT 0.890 0.873 0.857 0.842 08200012 0.797 0700 0.769 0.750 0.743 0.731 0.71 0.706 0.694 0.971 0.942 0915 889 0.864 0.840 0.816 0.71 0.772 0.750 0.737 0.712 0.693 0.675 0.6580641 0.624 0.609 0.53 0.579 40.901 24 ORA 0.856 OT 0.792 0.763 0.735 0.708600.659 0.6 0.613 0.592 0572 0.552 0.534 0516 0.499 0432 5 0.961 0.906 0.863 0.822 0.784 0.747 0.713 0681 0.65006210.598 0.567 0543 0.519 0.497 0.475 0.456 0.437 0.4190.402 022 18 0337 ON 0.70 106 6.630 050605640535 0.507 0.460 0.456 04:204T0OSIO 0.3760352 0.336 0.935 0.87 0813 0.760 0711 0.668 0.623 0.553 0.547 0.513 0.482 0.452 0425 0.400 0.375 0.354 0.393 0.314 0.295 0.278 BL 0.923 0.853 0.789 0.731 0.877 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.375 0.351 0.3270305 0.285 0.206 0249 0233 0914 0.83 0.766 ood 0.592 0.544 0.500 0.400 0.42 0.391 0.361 0.330 0.308 02840263 0243 0.225 0.209 0.1946 10 0.905 0.820 0.746 0.676 0.614 0.550 0.500 0.463 0.422 0.385 0.352 0.3220 295 0.270 0.2470227 0.20 0.1910.178.162 11 0800 04 0.722 07650 0 585 6127 0415 0429 03860350.31702870.2616237 0.21508 0176 0.162.148.135 12 0.887 0.788 0.701 0.625 0557 0.497 0444 0.397 0.356 0319 0.286 0.257 0231 0.200 0.1070.16 0.152 0.137 0.124 0.112 13 0.899 0.773 0.681 0.001 0.530 0.480 0415 0.368 0328 020010258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.04 0.093 14 0.8.10 0.758 0681 0.577 0505 0442 0386 0.340 0.299 026 0232 0.205 0.18 0.160 0.11 0.125 0.11 0.000 0.00 0.078 150.001 0.743 0.0420.556 0481 0.417 0.362 0.315 OZIS 0.299 0.200 0.18 0.100.140 0.123 0.100 0.096 0.0040074 0.015 0.853 0.728 0.623 0.534 0.458 0.394 0.330 0212 0.252 0218 0.188 0.163 0.541 0.123 0.1070.093 0.081 0.071 0.062 0.054 97 0.144 0.714 0.005 0513 0436 0 371 0.317 0.270 0231 0.170 0 146 0.125 0.108 0.00 0.00 0.00 0.000 0 0520045 18 0.836 0.700 0.587 0.4 0.416 0.350 0.296 0.250 0.212 0.750 0.153 0.10 0.11 0.096 0.081 0.069 0.059 0.061 0.044 0.038 100.128 0.686 0570 0.475 0300 0 331 0.277 0.232 0.194 0.1640.138 0.116 0.008 0.083 0.70 0.060 0.051 0.043 0.037 6031 20 0.20 0.673 0.54 0.456 0377 0.312 0.250 0.215 0.178 0:49 0.124 0.1040087 0.073 0.061 0.05 0.04 0.037 0.035 0.026 25 0.780 0.610 0.478 0.375 0 295 0.233 0.184 0.146 0.116 0.092 0.074 0.069 0.047 0.038 0.000 0.024 0.020 0.0160.013 0.010 30 0.742 0.552 0412 0.300 031 0.174 0.00 0.075 002 0.014 0.033 0028 0.02000150012 0.000 0.007 0.005 0.03% 35 0.706 0.500 0355 0.253 0.161 0.130 0,094 . 0.049 0.0360026 0.019 0.014 0.010 0.000 0.00 0.004 0.003 0.002 0.002 401 0.672 0453 0.307 0.208 0.142 0.007 0.067 0.046 0.002 0.022 0.015 0.011 0008 0.005 0.0040.003 0.002 0.001 0.001 0.001 50 0.00 0.372 0.22 0.141 0087 0.054 0.034 0021 0013 0.00 0.00 0.00 0.00 0.001 0.00 0.00 0.000 0.000 0.000 0.000 96 0131 Present Value of a 4031 Future Value of a Lump Sum Present Value of a Lump Sum Future Value of an Annuity Present value interest factor of an ordinary) annuity of S1 per period at i% for n periods, PVIFA(1.n). Period 1 39 49 5% 6% 7. 8% 910% 115 125 138 149 150 16% 17 18 19 2016 0.990 0.900 0.971 0.962 0.952 0.945 0.836 0.526 0.17 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.865 0.847 0.840 0.833 2 1.970 1942 1913 7850 1.833 108 1.783 1.759 1733 1713 1690 1668 1647 1628 1605 1525 1568 1.5471528 3 2041 2884 2.829 2.775 2.723 2.673 2824 2.577 2.531 2487 2.444 2.402 2.381 2322 223 2246 2210 2174 2.140 2100 43.902 3.800 3.717 3.630 3.540 3.45 3.387 3.312 3.240 3.70 3.102 3.037 2974 29142855 2.798 2.743 2.690 2639 2509 5 4 853 4 713 4.580 4452 4220 4212 4100 3.993 3.8903791 3.696 3.605 3.517 343333523.274 3.190 3127 3.0582901 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4355 4231 4.111 3.998 3.889 3.784 3695 3.589 3.498 34103326 7 6.720 6472 6.230 6.002 570 5.542 5.380 5.200 5.033 4.6 4.712 4364 4423 4260 4100 4.039 3.22 3.812 3705 005 7,652 7325 7.020 6.733 0.463 6210 5.971 5.741 5.535 5335 5.146 4.184.799 4.639 44574346 4.207 4.078 3.954 3837 9 8.500 818 7.786 7435 7.00 6.002 6.595 6.247 8.9065705537 5.328 5.132 49464772 4.607 4451 4.500 4 164 100.471 8.983 6.530 8.111 7.722 70 70 6.710 6.100.145 5.8805.6505.420 5.210501048334,6604494430 12 11 9787 9.253 8.760 8306 7887 7130 6.806 6.4956 207 5.938 5.687 5.453 5.2345.629 4.8364,656 4.486 4327 12 11.255 10.575 9.954 9.305 8.803 8.354 7.943 7.530 7.161 014 6.492 6.194 6.9185.000 5420 5.1974.906 4.790 4611 4439 1312134 11345 10.035 9.000 . 8.850 83 7,004 748771036.750 6.424 6.122 6842550042 118 4010 4.715 4313 413004 12.106 11.206 1053 920 8745 8.244 7.760733676902 6.628 6.00 6.00257205.468 5.220 5.000 4.002 4611 10190612840 11.901 11.11 TOO 712 108 8.650 8.00 0.10161116.42014276.515 0.24 0.0124.070 BY 10 18 12.501 16 10830101100 447 51 0.313M38096002063954560064062494720 1716162 14 202 13.100 12.100 1127010477 0 9.122 654480227.40 7.120 6.720 6373 60476.740 5475 5222 400015 116390 14902 13.754 12.650 11.680 10828 10.058 9.372 87568201 7.702 7.250 6.840 6.4570126 5818 5.534 5.273 5033 4112 1017226 15.00 13 12.085 11.158 10.30 5.804 8.85063057.839 73666.938 6.55065877 5.584 5.310 5.070 443 201604610351148PY 13500 1240211470 10.504 9.818 12965147.96374007.025 662363505420 5.628 5.353 510140 25 22023 105231741 1572 14012783 11.654 10675 29.0770.422784373306.873646466075.766 5:467 1950 301 25 08 22 300 10 000 17292 15.372 13.766 12.400 1125 1027494278.694 0056 748 7.000 6.500 6.177 3.029 5.517 5235 490 35 29.409 24 900 21487 18.665 16.374 14.458 12 948 11.655 10.567 9644 855 8.176 7.588 7.070 6617 6 215 5.858 5.539 5251 4.902 40 32835 27 355 23.115 19.793 17.150 15.046 13.332 11.925 10.757 9.779 5.951 8.244 7.634 7.105 6 642 6 233 5.871 5.548 5258 4997 50 39.195 3142425.730 21.482 18256 15.762 13.801 12 233 10.629150042 304 7,675 7.133 666162466.880555432024900

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