Cowboy Recording Studio is considering the investment of $135,000 in a new recording equipment. It is estimated that the new equipment will generate additional cash flow of $19,500 per year for each year of its 8-year life and will have a salvage value of $14,500 at the end of its life. Cowboys's financial managers estimate that the firm's cost of capital is 10%. Use Table 6-4 and Toble 6.5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Required: a. Calculate the net present value of the investment. b. Calculate the present value ratio of the investment. c. What is the internal rate of return of this investment, relative to the cost of capital? d. Calculate the payback period of the investment Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Calculate the net present value of the investment. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Net present value Required 8 > TUITO TACHOS POR CALCULATING TESTINESENT VALUE QE 38 Discount Rate of riods 2% 6% 8% 10% 12% 14% 16% 18% 20% 1 2 3 0.980 0.961 0.942 0.924 0.906 0.9615 0.9246 0.8890 0.8548 0.8219 0.9434 0.8900 0.8396 0.7921 0.7473 0.9259 0.8573 0.7938 0.7350 0.6806 0.9091 0.8264 0.7513 0.6830 0.6209 0.8929 0.7972 0.7118 0.6355 0.5674 0.8772 0.7695 0.6750 0.5921 0.5194 0.8621 0.7432 0.6407 0.5523 0.4761 0.8475 0.7182 0.6086 0.5158 0.4371 0.8333 0.6944 0.5787 0.4823 0.4019 4 5 6 7 8 9 0.888 0.871 0.853 0.837 0.820 0.7903 0.7599 0.7307 0.7026 0.6756 0.7050 0.6651 0.6274 0.5919 0.5584 0.6302 0.5835 0.5403 0.5002 0.4632 0.5645 0.5132 0.4665 0.4241 0.3855 0.5066 0.4523 0.4039 0.3606 0.3220 0.4556 0.3996 0.3506 0.3075 0.2697 0.4104 0.3538 0.3050 0.2630 0.2267 0.3704 0.3139 0.2660 0.2255 0.1911 0.3349 0.2791 0.2326 0.1938 0.1615 10 11 12 13 14 0.804 0.788 0.773 0.758 0.743 0.6496 0.5268 0.6246 0.4970 0.6006 0.4688 0.5775 0.4423 0.5553 0.4173 0.4289 0.3971 0.3677 0.3405 0.3152 0.3505 0.3186 0.2897 0.2633 0.2394 0.2875 0.2567 0.2292 0.2046 0.1827 0.2366 0.2076 0.1821 0.1597 0.1401 0.1964 0.1685 0.1452 0.1252 0. 1079 0.1619 0.1372 0.1163 0.0986 0.0835 0.1346 0.1122 0.0935 0.0779 0.0649 15 16 17 18 19 0.728 0.714 0.700 0.688 0.673 0.5339 0.5134 0.4936 0.4746 0.4564 0.3936 0.3714 0.3503 0.3305 0.3118 0.2919 0.2703 0.2502 0.2317 0.2145 0.2176 0.1978 0.1799 0.1635 0.1486 0.1631 0.1456 0.1300 0.1161 0.1037 0.1229 0.1078 0.0946 0.0829 0.0728 0.0930 0.0802 0.0691 0.0596 0.0514 0.0708 0.0600 0.0508 0.0431 0.0365 0.0541 0.0451 0.0376 0.0313 0.0261 20 21 22 23 24 25 0.860 0.647 0.634 0.622 0.610 0.4388 0.4220 0.4057 03903 0.3751 0.2942 02775 0.2618 0.2470 0.2330 0.1987 0.1839 0.1703 0.1577 0.1450 0.1351 0.1228 01117 0.1015 0.0923 0.0926 0826 0.0738 D10659 0.0688 0.0638 0.0560 00491 0.0431 0.0578 0.0443 0.0382 0.0329 0.0284 0.0245 0.0309 0.0252 0.0222 0.0188 0.0160 0.0217 0.0181 0.0151 0.0126 0.0105 30 35 40 45 50 0.552 0.500 0.453 0.410 0.372 0.3083 0.2534 0.2083 0.1712 0.1407 0.1741 0.1301 0.0372 0.0727 0.0543 0.0994 0.0676 0.046 0.0313 0.0210 0.0573 00356 0.0221 0.0137 0.005 0.0334 0.0189 0.0107 00051 D10035 0.0196 0.0102 0.0063 0.0027 0.0014 0.0116 0.0055 0.0026 0.0013 0.0006 0.0070 0.0030 0.0013 0.0006 0.0003 0.0042 0.0017 0.0007 0.0003 0.0001 TURII63 TACTORS TOR CALCULATING THE TRESENT VALUE OF AN ANNUITY OTSE Discount Rate of ods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 11 2 3 4 5 0.980 1.942 2.884 3.808 4.713 0.9615 1.8861 2.7751 3.6299 4.4518 0.9434 1.8334 2.6730 3.4651 4.2124 0.9259 1.7833 2.5771 3.3121 3.9927 0.9091 1.7355 2.4869 3.1699 3.7908 0.8929 1.6901 2.4018 3.0373 3.6048 0.8772 1.6467 2.3216 2.9137 3.4331 0.8621 1.6052 2.2459 2.7982 3.2743 0.8475 1.5656 2.1743 2.6901 3.1272 0.8333 1.5278 2.1065 2.5887 2.9906 6 7 8 9 10 5.601 6.472 7.325 8.162 8.983 5.2421 6.0021 6.7327 7.4353 8.1109 4.9173 5.5824 6.2098 6.8017 7.3601 4.6229 5.2064 5.7466 6.2469 6.7101 4.3553 4.8684 5.3349 5.7590 6.1446 4.1114 4.5638 4.9676 5.3282 5.6502 3.8887 42883 4.6389 4.9464 5.2161 3.6847 4.0386 4.3436 4.6065 4.8332 3.4976 3.8115 4.0776 4.3030 4.4941 3.3255 3.6046 3.8372 4.0310 4.1925 11 12 13 14 15 9.787 8.7605 7.8869 10.575 9.3851 8.3838 11.348 9.9856 8.8527 12.106 10.5631 9.2950 12.849 11.1184 9.7122 7.1390 7.5361 7.9038 8.2442 8.5595 6.4951 6.8137 7.1034 7.3667 7.6061 5.9377 6.1944 6.4235 6.6282 6.8109 5.4527 5.6603 5.8424 6.0021 6.1422 5.0286 5.1971 5.3423 5.4675 5.5755 4.6560 4.7932 4.9095 5.0081 5.0916 4,3271 4.4392 4.5327 4.6106 4.6755 16 17 18 19 20 13.578 14.292 14.992 15.678 16.351 11.6523 10.1059 12.1657 10.4773 12.6593 10.8276 13.1339 11.1581 13.5903 11.4699 8.8514 9.1216 9.3719 9.6036 9.8181 7.8237 8.0216 8.2014 8.3649 8.5136 6.9740 7.1196 7.2497 73658 7.4694 6.2651 6.3729 6.4674 6.5504 6.6231 5.8885 5.7487 5.8178 5.8775 5.9288 5.7624 5.2223 5.2732 5.3162 5.3527 4.7296 4.7746 4.8122 4.8435 4.8696 10.0168 10.2007 21 22 23 24 25 17.011 17.658 18.292 18.914 19.523 14.0292 11.7641 14.4511 12.0416 14.8568 12 3034 15.2470 12.5504 15.6221 12.7834 8.6487 8.7715 8.8832 8.9847 9.0770 10.3711 10.5288 10.6748 7.5620 7.6446 7.7184 7.7843 7.8431 6.6870 6.7429 6.7921 6.8351 6.8729 5.9731 60113 6.0442 6.0725 8.0971 5.3837 5.4099 5.4321 5.4509 5.4869 4.8913 4.9094 4.9245 4.9371 4.9676 30 35 40 45 50 22.396 17.2920 13.7648 24.999 18.6646 14:4982 27.355 19.7928 15.0403 29.490 20.7200 15.4558 31424 21 4822 15.7619 112578 11.6546 11.9246 12. 1084 12 2335 9.4269 19.6442 97791 9.8628 19148 8.0552 8.1766 8 2438 8.2825 8.3045 70027 7 0700 7 1050 71232 6.1772 62153 02335 6.2421 82483 5.5168 5.5388 5.5482 5.5523 5.5541 4.9789 4.9915 4.9956 1.9988