Creighton Music is considering investing $600,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $85,000 per year for the next nine years. Assuming that Creighton Music uses an 8% hurdle rate, what is the net present value (NPV) of the studio investment? Is this a favorable investment? (Click the icon to view the present value of an annuity table.) (Click the icon to view the present value table.) 2 (Click the icon to view the future value of an annuity table.) 3 (Click the icon to view the future value table.) (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) The net present value of the studio investment is $ Future Value of Annuity of $1 Periods 1% 1.000 2.010 3.030 4.060 5.101 2% 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 5% 1.000 2.050 3.153 4.310 5.526 6.802 8.142 9.549 11.027 12.578 6% 1.000 2.060 3.184 4.375 5.637 8% 1.000 2.080 3.246 4.506 5.867 7.336 8.923 10.637 12.488 14.487 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 20% 1.000 2.200 3.640 5.368 18% 1.000 2.180 3.572 5.215 7.154 7.442 6.468 7.662 6.152 7.214 8.286 9.369 10.462 6.308 7.434 8.583 9.755 10.950 6.633 7.898 9.214 10.583 12.006 6.975 8.394 9.897 11.491 13.181 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 10.159 11.464 wn SH ooo voop 11.567 12.683 13.809 14.947 16.097 12.169 13.412 14.680 15.974 17.293 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 18.292 20.024 14.207 15.917 17.713 19.599 21.579 14.972 16.870 18.882 21.015 23.276 16.645 18.977 21.495 24.215 27.152 18.531 21.384 24.523 27.975 31.772 20.655 24.133 28.029 32.393 37.280 23.045 27.271 32.089 37.581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 22.019 28.243 34.785 48.886 24.297 32.030 40.568 60.402 26.870 36.459 47.575 75.401 29.778 41.646 56.085 95.026 33.066 47.727 66.439 120.800 36.786 54.865 79.058 154.762 45.762 73.106 113.283 259.057 57.275 72.052 98.347 133.334 164.494 241.333 442.593767.091 91.025 181.871 356.787 1,342.025 115.380 249.214 530.312 2,360.757 146.628 186.688 342.603 471.981 790.948 1,181.882 4,163.213 7,343.858 | Periods 2345 67899 HQB4B8%99 1% | 2% | 3% | 16% | 18% | 20% 0.990 | 0.980 | 0.971 | 0.962 | 0.952 | 0.943 | 0.926 | 0.909 | 0.893 | 0.877 | 0.8621 0.847 10.833 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 10.797 0.769 0.743 0.718 10.694 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 10.712 0.675 0.641 0.609 10.579 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 | 0.636 | 0.592 | 0.552 0.516 0.482 0.951 0.906 10.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.942 0.888 10.837 0.790 0.746 10.705 0.630 0.564 0.507 0.456 0.410 10.370 0.335 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.923 0.853 | 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 10.233 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.905 0.820 0.744 0.676 10.614 | 0.558 10.463 0.386 0.322 0.270 10.227 0.191 0.162 0.896 | 0.804 | 0.722 10.650 10.585 10.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.887 0.788 0.701 10.625 0.557 0.497 10.397 0.319 0.257 0.208 0.168 0.137 10.112 0.879 0.773 0.681 10.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 10.093 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 10.078 0.861 0.743 10.642 0.555 0.481 0.417 10.315 0.239 0.183 0.140 0.108 0.084 10.065 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.742 0.552 0.412 0.308 0.231 0.174 | 0.099 | 0.057 | 0.033 | 0.020 | 0.012 | 0.007 | 0.004 10.672 | 0.453 | 0.307 | 0.208 | 0.142 | 0.097 | 0.046 | 0.022 | 0.011 | 0.005 | 0.003 | 0.001 | 0.001 Future Value of $1 5% 6% 8% Periods 11% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 1.050 1.103 1.158 1.216 1.276 1.060 1.124 1.191 1.262 1.338 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 1.772 1.949 2.144 2.358 2.594 2.853 3.138 3.452 3.797 4.177 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 4.661 6.848 10.063 21.725 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 5.117 5.936 6.886 7.988 9.266 6.176 7.288 8.599 10.147 11.974 7.430 8.916 10.699 12.839 15.407 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040 3.207 4.292 5.743 10.286 6.727 10.835 17.449 45.259 9.646 17.000 29.960 93.051 13.743 26.462 50.950 188.884 19.461 40.874 85.850 378.721 27.393 38.338 62.669 95.396 143.371 237.376 750.378 | 1,469.772