- Colorado Company is considering a project with an initial investment of $599,500 that is expected to produce cash inflows of $130,000 for ten years. Colorado's required rate of return is 8%. (Click on the icon to view Present Value of $1 table.) (Click on the icon to view Present Value of Ordinary Annuity of $1 table.) Reference 14. What is the NPV of the project? 15. What is the IRR of the project? 16. Is this an acceptable project for Colorado? Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 14. What is the NPV of the project? (Enter the factor amount to three decimal Period 2 0.980 0.961 0.943 0.925 0.9070.890 0.873 value.) 0.8570.842 0.826 0.797 0.769 0.756 0.743 0.7180.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.641 0.609 0.579 Net Cash Annuity PV Factor Period 4 0.961 0.924 0.888 0.855 0.8230.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 Years Inflow (i=8%, n=10) Period 5 0.951 0.906 0.863 0.822 0.784 0.7470.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 1 - 10 Present value of annuity Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.7110.665 0.623 0.5830.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 0 Investment Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.6450.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Net present value Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 Period 11 0.896 0.8040.722 0.650 0.585 0.527 0.475 0.429 0.3880.350 0.287 0.237 0.215 0.195 0.162 0.135 15. What is the IRR of the project? Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.1370.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 Start by calculating the Annuity PV factor. (Enter the factor amount to three de 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 La La ACAS ALDA TI-INN -------- In... 07 10.4 CA DOOR ACA Aan AAAF AAAA ANCA AFA ADA Reference 0.232 0.215 0.194 0.164 0.116 0.178 0.149 0.104 0.199 0.184 0.170 0.158 0.146 0.164 0.135 0.093 0.150 0.123 0.083 0.138 0.112 0.074 0.126 0.102 0.066 0.116 0.092 0.059 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 Period 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 Period 23 0.795 0.634 0.507 0.406 0.326 0.262 0.211 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 Period 26 0.772 0.598 0.464 0.361 0.281 0.220 0.172 Period 27 0.764 0.586 0.450 0.347 0.268 0.207 0.161 Period 28 0.757 0.574 0.437 0.333 0.255 0.196 0.150 Period 29 0.749 0.563 0.424 0.321 0.243 0.185 0.141 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.131 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.067 Period 50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.083 0.070 0.060 0.043 0.031 0.073 0.061 0.051 0.037 0.026 0.064 0.053 0.044 0.031 0.022 0.056 0.046 0.038 0.026 0.018 0.049 0.040 0.033 0.022 0.015 0.043 0.035 0.028 0.0190.013 0.038 0.030 0.024 0.0160.010 0.033 0.025 0.021 0.014 0.009 0.029 0.023 0.0180.0110.007 0.026 0.020 0.0160.010 0.006 0.022 0.017 0.014 0.008 0.005 0.0200.015 0.012 0.007 0.004 0.005 0.004 0.003 0.001 0.001 0.135 0.125 0.116 0.107 0.099 0.106 0.084 0.053 0.098 | 0.076 0.047 0.090 0.069 0.042 0.082 0.063 0.037 0.075 0.057 0.033 0.046 0.032 0.022 0.011 0.021 0.013 | 0.009 0.003 0.001 0.001 0.001 14. What is the NPV of the project? (Enter the factor amount to three decimal places, X.XXX. Round the present value of the annuity to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) Net Cash Annuity PV Factor Present Years Inflow (i=8%, n=10) Value 1 - 10 Present value of annuity 0 Investment 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.) Annuity PV factor The IRR of the project is 16. Is this an acceptable project for Colorado? This an acceptable project for Colorado, because the NPV is V than zero and the IRR is than Colorado's required rate of return. Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Present Value of Ordinary Annuity of $1 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 24022.322 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.1703.037 2.914 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 5.795 5.601 5.417 5.2425.076 4.917 4.767 4.623 4.4864.355 4.111 3.889 6.728 6.472 6.230 6.0025.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 8.5668.162 7.786 7.435 7.108 6.802 6.515 6.247 5.9955.759 5328 4.946 9.471 8.983 8.530 8.111 7.722 7.360 7.0246.710 6.418 6.145 5.650 5.216 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.5367.161 | 6.814 6.194 5.660 12.134 11.348 10.635 9.9869.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 13.004 12.106 11.296 10.5639.899 9.295 8.745 8.2447.786 7.367 6.628 6.002 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 15% 16% 18% 20% 0.870 0.862 0.847 0.833 1.626 1.605 1.566 1.528 2.283 2.246 2.174 2.106 2.856 2.798 2.690 2.589 3.352 3.274 3.127 2.991 3.784 3.685 3.498 3.326 4160 4.039 3.812 3.605 4.487 4.344 4.078 3.837 4.772 4.607 4.303 4.031 5.019 4.833 4.494 4.192 5.234 5.421 5.583 5.724 5.847 5.029 4.656 4.327 5.197 4.793 4.439 5.342 4.910 4.533 5.468 5.008 4.611 5.575 5.092 4.675 5.669 5.162 4.730 5.749 5.222 4.775 Period 16 Period 17 14.718 13.578 12.561 11.652 10.838 10.106 9.447 15.562 14.292 13.166 12.166 11.274 10.4771 9.763 8.851 8.313 7.824 9.122 8.544 8.022 6.974 7.120 6.265 6.373 5.954 6.047 loan DOO LOOR * CA AA ZOPA AO 1.00 -. LA 1 Reference 5.468 5.575 5.008 4.611 5.092 4.675 5.669 5.749 5.818 5.877 5.929 5.162 4.730 5.222 4.775 5.273 4.812 5.3164.844 5.353 4.870 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.3676.628 6.002 5.724 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 3.559 8.061 7.606 6.811 6.142 5.847 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.954 Period 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128 Period 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.198 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 Period 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 Period 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.2019.442 8.772 7.645 6.743 6.359 Period 23 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 6.792 6.399 Period 24 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.434 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.8239.077 7.843 6.873 6.464 Period 26 22.795 20.121 17.877 15.983 14.375 13.003 11.826 10.8109.929 9.161 7.896 6.906 6.491 Period 27 23.560 20.707 | 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 6.935 6.514 Period 28 24.316 21.281 18.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 7.984 6.961 6.534 Period 29 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.022 6.983 6.551 Period 30 25.80822.396 | 19.600 17.292 15.372 13.765 12.409 11 258 10.274 9.427 8.055 7.003 6.566 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.244 7.105 6.642 Period 50 39.196 31.42425.730 21.482 18-25615.762 13.801 12.233 10.962 9.915 8.304 7.133 6.661 5.973 6.011 6.044 6.073 6.097 5.384 5.410 5.432 5.451 5.467 4.891 4.909 4.925 4.937 4.948 6.118 6.136 6.152 6.166 6.177 5.480 5.492 5.502 5.510 5.517 4.956 4.964 4.970 4.975 4.979 6.233 5.548 4.997 6.246 5.554 4.999