Croce, Incorporated, is investigating an investment in equipment that would have a useful life of 9 years. The company uses a discount rate of 16% in its capital budgeting. The net present value of the investment, excluding the salvage value, is-$579,464. (Ignore income taxes.) Click here to view Exhibit 148-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using the tables provided. How large would the salvage value of the equipment have to be to make the investment in the equipment financially attractive? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice $579,464 $2,203,285 $92.714 $3,621,650 EXHIBIT 148-1 Present Value of $1; 1(1+r)n Periods 4% 5% 6% 7% 8% 9% 1 0.962 0.952 0.943 0.935 0.926 0917 10% 0.909 2 0.925 0.907 0.890 0.873 0.857 0.842 0.826 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 5 0.822 0.784 0.747 0.713 0.681 0.650 0.621 6 0.790 0.746 0.705 0.666 0.630 0.596 0.564 7 0.760 0.711 0.665 0.623 0.583 8 0.731 0.677 0.627 0.582 0.540 9 0.703 10 0.676 11 0.650 0.645 0.592 0.614 0.558 0.508 0.585 0.527 0475 0.544 0.500 12 13 0.601 0.625 0.557 0.497 0.530 0.469 14 0.577 15 0555 0.481 0417 0.444 0415 0.505 0.442 0.388 0.340 0.299 0.263 0.362 0315 0.275 0.547 0.513 0.502 | 0.467 0.460 0.424 0.463 0.422 0.386 0.429 0.388 0.350 0.397 0.356 | 0.319 0.368 0.326 0.290 11% 12% 0.901 0.893 0.812 0.797 0.731 | 0.712 0.636 0.659 0.593 0.567 0.535 0.507 0.482 0.452 0.434 0.404 0.232 0.239 0.209 16 0.534 0458 0.394 0.339 0.292 0.252 17 181 19 20 21 22 23 24 0.126 0.102 25 0375 0.295 | 0.233 0.184 0.146 0.116 0.092 26 0361 0.281 0.220 0.172 | 0.135 0.074 0.066 27 0.347 0.268 0.207 0.161 0.125 28 0.333 0255 0.196 0.150 0.116 29 0.321 0.243 0.185 30 0.308 0.231 0.174 40 0.208 0.142 0.097 0.067 0.046 0.032 0.022 13% 19% 14% 17% 15% 16% 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0826 0.820 0813 0.806 0.800 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.661 0.672 0.650 0.640 0.693 0.675 0.658 0.641 0.564 0.551 0.537 | 0.524 0512 0.624 0.609 0.593 0.579 0437 0423 0410 0451 0.613 0592 0.572 0.552 0.534 0516 0.499 0.482 0.467 0.386 0328 0.543 0.519 0.497 0476 0.456 0437 0.419 0.402 0370 0.355 0.341 0289 0.275 0.262 0410 0.390 0.480 0.456 0.432 0.370 0.352 0.335 0319 0.303 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 0.204 0.191 0.179 0.168 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 0.227 0.208 0.191 0.352 0.322 0.295 0.270 0.247 0.176 0.162 0.149 0.137 0.126 0.116 0.107 0.094 0086 0.162 0.148 0.135 0.123 0.112 0.103 0317 0.287 0.261 0.237 0.215 0.195 0.178 0.083 0.076 0.069 0.286 0.257 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.231 0.084 0.075 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.099 0.088 0.078 0.069 0.062 0.205 0.181 0.160 0.141 0.125 0.111 0.057 0.051 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.188 0.163 0.141 0.123 0.107 0.218 0436 0.371 0080 0.069 0.060 0.052 0.045 0.039 0.034 0513 0.317 0.270 0.231 0.198 0.093 0.170 0.146 | 0.125 | 0.108 0.032 0.028 0.081 0.069 0.059 0.051 0.044 0038 0,095 0.153 0.130 0.111 0.212 0.180 0494 0416 0.350 0.296 0.250 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.475 0.396 0331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.073 0.061 0.014 0.012 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.016) 0.456 0.377 0312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.077 0.064 0.031 0.164 0.135 0.112 0.093 0.053 0.044 0.037 0.026 0.022 0.018 0.015 0.013 0.011 0439 0.359 0.294 0.242 0.199 0.032 0026 0.013 0.011 0.022 0.018 0.015 0.009 0.083 0.068 0.056 0.046 0.038 0.150 0.123 0.101 0422 0.342 0.278 0.226 0.184 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.406 0.326 0.262 0.211 0.170 0.138 | 0.112 0.091 0.074- 0.028 0.023 0.019 0.015 0.013 0.010 0.066 0.158 0.053 0.043 0.082 0035 0.390 0310 0.247 0.197 0.059 0.047 0038 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0.042 0.033 0.026 0021 0017 0.014 0.011 0.009 0.106 0.084 0.053 0.005 0.006 0.002 0.004 0.003 0014 0.011 0.009 0.007 0.018 0.037 0.029 0.023 0.047 0.098 0.076 0.060 0.006 0.002 0.005 0.004 0.003 0.002 0.033 0.026 0.020 0.016 0.012 0.010 0.008 0.090 0.069 0.054 0.042 0.004 0.003 0.002 0.002 0.002 0.037 0.014 0.011 0.008 0.006 0.005 0029 0.022 0.017 0.107 0.082 0.063 0.048 0.141 0.001 0044 0.033 0.026 0.020 0015 0012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.131 0.099 0.075 0.057 0000 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0000 0000 0.000 0.015 18% 20% 21% 22% 23% 24% 25% 0.068 0.061 0.055 0.055 0.049 0044 0.045 0.040 0.035 0.036 0.032 0.028 0.030 0026 0.023 0.024 0.021 0.018 0.017 0.014 0009 0.007 0.010 0.009 0.007 0.006 0.008 0.007 0.006 0.005 0.007 0.006 0.005 0.004 0.007 0.006 | 0.005 0.004 0.003 EXHIBIT 14B-2 Present Value of an Annuity of $1 in Arrears, 1r[1-1(1+r)n] Periods 4% 5% 6% A 0962 0.952 0.943 7% 85 0.935 0.926 2 1886 1859 1.833 1808 1,783 3 2.775 2.723 2.673 4 3630 3546 3.465 3387 5 4452 4329 4212 4.100 6 5.242 5076 4.917 2.624 2.577 3312 3.993 4.767 4623 7 6.002 5.786 5.582 5.389 5.206 8 6.733 6463 6.210 5.971 5.747 5.535 9 7435 7.108 6.802 6515 6.247 5.995 10 8.111 7.722 7.360 7024 6.710 11 8.760 8.306 7887 7499 7.139 12 9.385 8863) 8.384 7943 13 9.986 9394 8.853 8.358 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 40 14% 23% 24% 25% 9% 10% 11% 12% 13% 15% 16% 17% 18% 19% 20% 21% 22% 0.917 0909 0.901 0.893 0.885 0.877 0.870 | 0.862 | 0.855 0847 0.840 0.833 0.826 0.820 0.813 0.306 0.800 1.759 1.736 1.713 1.690 1668 1647 1.626 1.605 1585 1566 1547 1.528 1509 1492 1474 1457 1440 2.531 2487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2042 2011 1.981 1952 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2494 2.448 2.404 2362 3.890 3.791 3.696 3.605 3.517 3433 3.352 3.274 3.199 3.127 3058 2.991 2.926 2.864 2.803 2.745 2689 4486 4355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3410 3326 3.245 3.167 3.092 3.020 2951 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3416 3.327 3.242 3.161 5.335 5.146 4.968 4.799 4.639 4.487 4344 4.207 4.078 3954 3.837 3.726 3.619 3518 3.421 3329 5.759 | 5537 5.328 5.132 4946 4.772 4.607 4.451 4303 4.163 4.031 3.905 3.786 3673 3.566 3.463 6418 6.145 5.889 5.650 5426 5.216 5.019 4833 4.659 4.494 4.339 4.192 4054 3.923 3.799 3.682 3571 6.805 6.495 6207 5.938 5.687 5453 5234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3656 7536 7.161 6.814 6492 6.194 5.918 5.660 5421 5.197 4.988 4.793 4.611 4.439 4278 4.127 3.985 3851 3725 7.904 7487 7.103 6.750 6424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 10.563 9.899 9.295 8.745 8.244 7.786 7367 6.982 6.628 6.302 6002 5.724 5.468 5229 5.00% 4.802 4611 4432 4.205 4.108 3.962 3824 11.118 10.380 9.712 9.108 8559 8061 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4.489 4315 4.153 4.00 3.859 11.652 10 838 10:106 9.447 8851 8313 7.824 7379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4536 4357 4.189 4.033 3387 12.166 11 274 10.477 9.763 9.122 8544 8.022 7549 7.120 6.729 6.373 6047 5.749 5.475 5.222 4.990 4.775 4576 4.391 4219 4.059 3910 12.659 11.690 10.825 10.059 9372 8.756 8201 7.702 7-250 6.840 6.467 6.128 5.818 5534 5.273 5033 4.812 4.608 4.419 4.243 4080 3928 13.134 12.085 11.158 10336 9.604 8.950 8.365 7.839 7.366 6938 6.550 6.198 5.877 5.584 5316 5070 4.843 4.635 4442 4.263 4097 3942 13 590 12.462 11 470 10594 9.818 9.129 8514 7.963 7 469 7.025 6623 6.259 5.929 5.628 5353 5.101 4870 4.657 4.460 4.279 4.110 3954 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7562 7.102 6.687 6312 5.973 5665 5.384 5.127 4.391 4.675 4476 4.292 4.121 3963 14.451 13.163 12.042 11.061 10.201 9.442 8.772 8.176 7.645 7.170 6.743 6.359 6.011 5.696 5410 5.149 4.909 4.690 4.488 4302 4.130 3970 14.857 13.489 12.303 11.272 10.371 9.580 8883 8.266 7.718 7.230 6.792 6.399 6044 5.223 5.432 5.167 4.925 4.703 4.499 4311 4.137 3.976 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7.784 7.283 6.835 6434 6.073 5.746 5.451 5.182 4937 4.713 4507 4318 4.143 3981 15.622 14.094 12.783 11.654 10.675 9.823 9077 8422 7.843 7330 6873 6464 6.097 5.766 5.467 5.195 4.948 4.721 4514 4323 4.147 3.985 15.983 14.375 13.003 11826 10.810 9.929 9.161 8.488 7.896 7372 6.906 6.491 6.118 5.783 5.480 5206 4.956 4.728 4520 4328 4.151 3.968 16330 14.643 13.211 11.987 10.935 10.027 9.237 8548 7.943 7.409 6.935 6514 6.136 5.795 5.492 5.215 4.964 4.734 4524 4332 4.154 3.990 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7.984 7441 6.961 6534 6.152 5810 5.502 5.223 4.970 4.739 4528 4335 4.157 3.992 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7470 6.983 6551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4.159 3.994 17.292 15.372 13.765 12.409 11.258 10.274 9427 8.694 8.055 7496 7.003 6566 6.177 5829 5517 5235 4.979 4.746 4334 4.339 4.160 3995 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8951 8.244 7634 7.105 6.642 6233 5871 5.548 5258 4.997 4.760 4544 4.347 4.366 3999