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D Dynamo is considering buying a new water treatment system for its plantin Austin, Texas The investment proposal passed the screening and counting rate of

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D Dynamo is considering buying a new water treatment system for its plantin Austin, Texas The investment proposal passed the screening and counting rate of return) so the company now wants to analyze the proponat using the discounted cashow methodsThe water treatment system costs as year and so value. The estimated net cash inflows from environmental cleanup savings are $11.000 per yew over to the company's required rate of return is 10% (Click the icon to view Present Value of 51 table) the con to view Present Value of Ordinary Amoy of 5) Read the remonts Requirement 1. Compute the water treatment systems NPV (Enter any factor amounts to three cocina peces xxx Use persones among the wave NPV Net Cash Annuity PV Factor Years Inflow (-10%, nel Present Value Years 1-3 Present value of annuity Year o Investment Net present value Enter any numbor in the edit fields and then continue to the next question his Question: 4 pts 20 of 22 (19 complete) This Dynamo is considering buying a new water treatment system for its plant in Austin, Texas. The investment proposal passed the initial screening tests payback and retum) so the company now wants to analyze the proposal using the discounted cash flow methods. The water treatment system costs $52,800, has a eight year value. The estimated net cash inflows from environmental cleanup savings are $11,000 per year over its life. The company's required rate of return is 76% (Click the icon to view Present Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of 51 table.) Read the requirements Not prosent value Requirement 2. Find the water treatment system's IRR (exact percentage is not required) The IRR (internal rate of return) is between Requirement 3. Should Dynamo buy the water treatment system? Why or why not? Dynamo v buy the water treatment system. It has a V NPV, and its IRR me company's oured rate of return Enter any number in the edit fields and then continue to the next question 1% Present Value of Ordinary Annuity of $1 Periods 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 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1759 1736 1.690 1647 1.626 1605 1.566 1.528 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246/2.174/2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2798 2 690 2 589 Period 5 4,853 4.713 4,580 4.452 4.329 4 212 4.100 3.993 3.890 3.791 3.605 3.433 3,352 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4355 4.111 3.8893.784 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4 868 4.564 4 288 4.160 4.039 3.812 3,605 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 Period 9 8,566 8.162 7.786 7.435 7 108 6.802 6.515 6.247 5.995 5.759 5328 4.946 4.772 4.607 4.303 4.031 Period 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5,019 4.833 4.494 4.192 10 ... 6 707 0.02 o non lo 7 977 4007.120 A105 0915 19109042997 Darin Print Print Done TIU 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.327 Period 11 Period 12 Period 11.255 10,575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6,814 6.194 5.660 5.421 5.1974.793 4.439 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7904 7.487 7.103 6.424 5.842 5.583 5342 4.910 4.533 13 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5724 6.468 50084611 Period 14 Period 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 5,575 5,092 4.675 15 Period 16 Period 17 14.71813.578 12.561 11652 10.838 10.106 9.447 8.851 8.313 7.824 6.9746.265 5.954 5.669 5.162 4730 15.56214.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373) 6.047 5.749 5.222 4.775 16 UFUU TU ....TUOTT.WOUVEYT VUOTTUTO TULIV. UTEUTUU TUTE 118 Period 17.226 15.678 14.324 13.134 12.08511.15810.336 9.604 8.950 8.365 7366 6.550 6.198 5.877 5.316 4.844 19 Period 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 5.929 5,353 4.870 20 Period 18.857 17.01115.415 14.029 12.82111.764 10.836 10.017 9.292 8.649 7 562 6.687 6.312 5 973 5384 4 891 21 19.660 17.658 15.937 14.45113.16312.042 11.061 10.2019.442 8.772 7.645 6.743 6.359 6 011 5.410 4.909 20.45618.292 16.444 14.857 13.48912.303 11 272 10.371 9.580 8.883 7718 6.792 6,399 6,044 5432 4.925 Period 22 Period 23 Period 24 Period 21.24318.914 16.936 15 247 13.799 12.550 11.469 10.529 9.707 8,985 7.784 6.835 6.434 6:073 5.451 4.937 22.023 19,523 17.413 15.622 14.09412.783 11.654 10.675 9.823 9.0777 843 6.873 5 464 6.097 5.467 4.948 Print Done Period 22.023 19.523 17.41315.622 14.09412.783 11.654 10.675 9.823 9.077 7.843 6.873 6.464 6.097 5.467 4.948 25 22.79520 121 17.877 15.983 14.37513.003 11.826 10.810 9.929 9.161 7896 6,906 6.491 6.118 5.480 4956 23.560 20.707 18.327 16.33014643 13.211 11.987 10.93510.027 9.237 7.943 6.935 6,5146.138 5.492 4.964 Period 26 Period 27 Period 28 Period 29 Period 30 Period 40 24.31621.28118.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 7 984 6,961 6.534 6.152 5.502 4.970 25.066 21.844 19.188 16.984 15.14113,59112 278 11.158 10.198 9.370 8 022 6 983 6.551 6.166 5510 4 975 25.80822.396 19.600 17.292 15.37213.765 12.409 11.258 10 274 9.427 8.055 7.003 6.566 6.1775.517 4.979 32.83527 355 23.115 19.793 17.15915.04613.332 11.925 10.757 9.779 8.244 7 105 6.642 6 233 5 548 4.997 Print Done 22.79520.121 17 877 15.983 14.37513,003 11.826 10 810 9.929 9.161 7.896 6.906 6.491 6.118 5.480 4956 23.56020.707 18.327 16.330 14 643 13 2 11 11.987 10.93510.027 9.237 7943 6.935 6.514 6.136 5.492 4964 Period 26 Period 27 Period 28 Period 24.31621.28118.764 16,663 1489813 40612. 137 11.05110,116 9.307 7.984 6,961 6.534 6.152 5.502 4.970 25.06621 844 19.188 16.984 15.1411350112 278 11.15810,198 9.370 8.022 6.983 6,561 6166 5.6104.975 25 80822 396 19.60017 292 15.37213.76512.409 11.258 10.2749.4278.0557.003 6.566 6.1776.517 4979 29 Period 30 Period 40 32 83527355 23. 115 19.793 17. 15915.04613 332 11.92510767 9.779 8.244 7 105 6.642 6 233 5 548 4.907 Period 50 39.196 31 424 25.730 21 482 18 25615.76213 801 12 233 10.962 9.915 8 304 7.133 6.661 8.246 55544999 Print Done considering buying a new water treatment system for its plant in Austin, Texas. The investment propos che company now wants to analyze the proposal using the discounted cash flow methods. The water tr estimated net cash inflows from environmental cleanup savings are $11,000 per year over its life. The the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary A requirements VURU Net present value nent 2. Find the water treatment system's IRR (exact percentage is not required) (internal rate of return) is between ment 3. Should Dynamo buy the wa Nhy or why not? 10% and 12% buy the water treatme NPV, and its IRR the cor 16% and 18% 14% and 16% t question ny number in the edit fields and the 12% and 14%

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