Collins Company is considering a project with an initial investment of $600,500 that is expected to produce cash inflows of $129,000 for ten years. Collins's required rate 14 What is the NPV of the project? return is 15 %. 15. What is the IRR of the project? Is this an acceptable project for Collins? 16 (Click on the icon to view Present Value of $1 table.) Click on the icon to view Present Value of Ordinary Annuity of S1 table.) 14. What is the NPV of the project? (Enter the factor amount to three decimal places, XXXX. Round the present value of the annuity to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) Present Net Cash Annuity PV Factor Years Inflow (i-15 %, n- 10) Value 5.019 647451 129000 -10 Present value of annuity 600500 0 Investment 46951 . Net present value 15. What is the IRR of the project? Start by calculating the Annuity PV factor. (Enter the factor amount to three decimal places, XXXX) Initial investment Amount f cash inflow Annuity PV factor = 129000 600500 .655 The IRR of the project is 16 % - 18 % 16. Is this an acceptable project for Collins? This is an acceptable project for Collins, because the NPV is greater than zero and the IRR is greater than Collins's required rate of return. Activate Window Choose from any list or enter any number in the input fields and then continue to the next question Go to Settinas to activ Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.990 0.980 0.980 0961 0.971 0.971 0.943 0915 0.888 0.863 0.962 0.925 0.889 0.855 0.822 0.952 0.907 0.864 0823 0.784 0.943 0.890 0840 0.792 0747 0.935 0.926 0873 0857 0816 0.909 0826 0893 0797 0.870 0.862 0.743 0833 0.694 0579 0.482 0.402 0.917 0.842 0877 0769 0756 0.772 0751 0712 0675 0658 0.641 0847 0718 0.609 0.516 0476 0437 2 0.942 0.794 0.763 0735 0.681 0.683 0636 0.592 0.621 0.961 0.924 0708 0.650 0.572 0.497 0.552 0.951 0.906 0713 0.567 0519 0.942 0888 0.933 0.871 0.923 0.853 0837 0914 0.905 0820 0507 0456 0432 0837 0813 0.789 0.766 0.744 0.790 0.760 0731 0703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.630 0.623 0583 0540 0.500 0.558 0508 0463 0475 0429 0.397 0.368 0.340 0.362 0315 0.666 0.596 0.547 0.502 0460 0422 0.564 0513 0452 0.400 0467 0.424 0.386 0410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.335 0279 0233 0.376 0.327 0 284 0247 0.582 0351 0308 0270 0.404 0.361 0.322 0.225 0.544 0.194 0.191 0.162 10 0.388 0350 0.356 0.162 0.135 0.137 0.112 0.116 0.125 0099 0.084 11 0.896 0.887 12 13 0.879 14 0870 0758 15 0.861 0804 0788 0.773 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0.601 0.577 0.555 0.585 0.557 0.530 0.505 0.481 0.527 0497 0.469 0.442 0417 0237 0208 0.182 0.160 0.141 0.140 0.123 0.163 0.123 0.108 0.180 0.130 0.095 0081 0.083 0.073 0061 0.287 0257 0229 0.205 0.183 0215 0.187 0.163 0.195 0.168 0.145 0.319 0.326 0290 0.299 0.444 0415 0.388 0093 0.078 0.065 0263 0.743 0275 0.239 0.108 0.394 0.339 0292 0.371 0350 0.331 0.312 16 17 18 19 20 0853 0.844 0714 0.836 0.828 0.820 0673 0.728 0.623 0.605 0.587 0.570 0.554 0534 0513 0.494 0.475 0.456 0.458 0.436 0416 0.396 0.377 0.252 0.231 0212 0.194 0218 0.198 0.107 0.093 0.093 0080 0.069 0060 0.051 0071 0.060 0.051 0.043 0031 0037 0026 0.054 0.045 0038 0.317 0.296 0250 0277 0.258 0215 0.178 0149 0.270 0.146 0700 0.686 0232 0.164 0.116 0.104 0.070 0.093 0064 0.053 0044 0031 0.046 0038 0.242 0.199 0226 0.184 0.164 0.135 0.150 0.123 21 22 0.811 0.803 0.660 0.647 0.538 0.522 0439 0422 0.359 0.342 0294 0.278 0.022 0018 0083 0056 0.026 X i Reference Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.952 0.943 0.935 0.926 0917 0909 0893 0877 1647 2.322 2914 3.890 3.791 3605 3433 0.990 0.980 0971 0.962 0.870 0862 0847 0833 1.626 1.605 1.566 2.283 2.246 2.174 2.106 2855 2.798 2690 2589 3.352 1 1.859 1.833 1808 1.783 2723 2673 2624 2577 2531 2487 1.759 1.736 1.690 2402 3.546 3465 3387 3312 3240 3.170 3037 1.942 1913 1.886 2.829 2.775 3.717 3630 4.580 4452 4.329 1.970 2.941 1.528 3 2.884 3.902 3808 4713 4212 4.100 3.993 5.076 4917 4.767 3.274 3.127 2991 4.853 5.795 5601 6.728 6472 6230 6.002 7.652 8.566 8.162 10 3.784 3685 3.498 3.326 4.160 4039 3812 3.605 4.487 4.772 5.019 4.833 5.234 5.029 4656 5.421 5.197 4.793 5583 5.342 4910 5.724 5.468 5.008 5.847 5575 5.092 4675 5.954 5.669 5.162 6.047 5.749 5222 4775 6.128 5818 5273 4812 6.198 5877 5.316 6.259 6 5417 5.242 3.889 5.786 5582 5.389 5206 5033 4868 4564 4288 4.639 4946 5.650 5.216 4.623 4486 4.355 4.111 7 7.325 7.020 6.733 5747 5535 5.335 4968 6.802 6.515 6.247 5995 5.759 5.328 6463 6210 5.971 4.078 3.837 4.031 4.192 4,344 4.607 4303 7.786 7435 7.108 8.111 9.471 8983 8.530 7.360 7.024 6710 6418 6.145 7.722 4494 8.306 7.887 7499 7.139 6805 6495 5.938 7.536 7.161 7.904 9253 8.760 10.368 9.787 4.327 4.439 4.533 4611 11 5.453 6.194 5.660 5.842 6.002 11.255 10.575 9.954 9.385 8.863 8.384 12 7.943 9.394 8.853 8.358 9.899 9.295 8.745 8244 6.814 7.487 7.103 6.424 7.786 7.367 12.134 11.348 10.635 9.986 13 13.004 12.106 11.296 10.563 14 6628 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8559 8.061 7606 6.811 6.142 15 14.718 13.578 12.561 11.652 10.838 10.106 9447 8.851 8.313 7.824 6.974 16 6.265 6.373 6.467 6550 8.514 7.469 6623 4,730 15.562 14.292 13.166 12166 11.274 10.477 9.763 9.122 8544 8.022 17 7.120 16.398 14.992 13.754 12659 11.690 10.828 10.059 9.372 8.756 8.201 7250 18 17.226 15.678 14.324 13.134 12085 11.158 | 10.336 9.604 8950 8.365 7.366 19 4844 4870 5.929 5.353 18.046 16.351 14.877 13.590 12462 11.470 10.594 9818 9.129 20 18.857 17.011 15415 14.029 12821 11.764 10.836| 10017 9292 8.649 7.562 6.312 5.973 5384 4891 6.359 6.011 5410 21 6687 6.743 19.660 17.658 15.937 14451 13.163 12042 11.061| 10.201 9442 8.772 7645 22 4909 Print Done