Davis Chili Company is considering an investment of $54,000, which produces the following inflows:

Year	Cash flow
1	$24,000
2	23,000
3	20,000

Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

a. Determine the net present value of the project based on a zero percent discount rate.

Net present value=.............

b. Determine the net present value of the project based on a 13 percent discount rate. (Do not round intermediate calculations and round your answer to 2 decimal places.)

Net present value=.............

c. Determine the net present value of the project based on a 20 percent discount rate. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.)

Net present value=.............

Block 17e_AppB.pdf 1/2 Appendix B Present value of $1, PV 1 PV=FV IN + 3% 9%. 10% 11% 12%. Parlad 1. 14 0.990 5% 0.952 0.907 0.864 4% 0962 0.925 0.999 0.855 0.917 0.842 0893 0.797 2 0.980 0.971 0.961 0.951 0.942 0.712 0.626 3 4 4 5 6 7 .................. 0.909 0.82G 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 B 9 0971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.756 0744 0.722 0701 0.681 0651 0.642 0.623 0.605 10 11 2%. 0.980 0.961 0.942 0.924 0.906 O.BBB 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.72B 0.714 0.700 0.6B6 0.673 0.610 0.552 0.453 0.372 12 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.853 0.844 0.836 0.828 0.820 0.780 0.742 0,672 Percent 6% 74. 0.943 0935 0.890 0.873 0.B40 0.816 0.792 0.763 0.747 0.713 0.705 0.666 0.555 0.623 0.627 0.582 0.592 0.544 0558 OSOB 0.527 0.475 0497 0444 0.469 0.415 0.442 0388 0.362 0.394 0.339 0.371 0.312 0.350 0.295 0.331 0.277 0.312 0258 0.233 0.184 0.174 0.131 0.097 0067 0.054 0.034 0.822 0.790 0.760 0.731 0.703 0.67 0.650 0.625 0.601 0.577 0.555 0.534 0.513 0.494 0.475 0.456 0.375 0.308 0.208 0.141 13 8%. 0.926 0.857 0.794 0.735 0.6B1 0.630 0.583 0.540 0.500 0.453 0.429 0.397 0.368 0.340 0.315 0.292 0.270 0.250 0.232 0.215 0.146 0.099 0.046 0.021 0.823 0.784 0.746 0.711 0.677 0.645 0.614 0.585 0.557 0.530 0.505 0.481 0.458 0.436 0.416 0.396 0.377 0.295 0.231 0.142 0.087 14 0.772 0.708 0.650 0.596 0.547 0.502 0.460 0.422 0.388 0.356 0.326 0.299 0.275 0.252 0.231 0.212 0.194 0.178 0.116 0.075 0.032 0.013 0.901 0.812 0.731 0.659 0.593 0.535 0.482 0.434 0.391 0 0.352 0.317 0.285 0.258 0.232 0.209 0.1BB 0.170 0.153 0.13B 0.124 0.074 0.044 0015 0.005 15 0.567 0.507 0.452 0.404 0.361 0322 0.287 0257 0.229 0205 0.193 0.163 0.146 0.130 0.116 0.104 0.059 0.033 0011 0.003 0.350 0.319 0.290 0.263 0.239 0.218 0.198 0.180 0.164 0.149 0.092 0.057 0.022 0.009 16 18 0.587 19 20 - 25 0.570 0.554 0.478 0.412 0307 0.228 30 40 50 0.608 21 hulu AW P 0 Block17e_AppB.pdf 2 / 2 Appendix B (concluded) Present value of $1 Percent 15% 16% 18% 19% 30% 35% 40% 20% 0.833 0,694 25% 0.800 Period 1 2 3 4 5 6. 0.640 0.512 0.769 0.592 0.455 0.350 0.741 0.549 0.406 0.301 13% 0.995 0.783 0.693 0.613 0.543 0.480 0.425 0.376 0.333 0.295 0.261 0.231 0.204 0.181 0.160 0.141 0.125 0.870 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 7 a 9 0.840 0.706 0.593 0.499 0.419 0.352 0.296 0.249 0.209 0.847 0.718 0.609 0.5 15 0.437 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 14% 0.872 0 769 0.675 0.592 0.519 0.456 0.400 0.351 0.300 0.270 0237 0.208 0.182 0.160 0 140 0.123 0.108 0.095 0.083 0.073 0.038 0.020 0.005 0.001 17% 0.855 0.731 0.624 0.534 0.456 0.390 0.333 0.285 0.243 0.208 0.178 0.152 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.043 0.020 0.009 10 11 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.093 O.OBO 0.069 0.060 0.051 0.024 0.012 0.003 0.001 0.410 0.328 0.262 0.210 0.168 0.134 0.107 0,086 0.069 0.055 0.044 0.247 0215 12 13. 0.714 0510 0.364 0.260 0.186 0.133 0.095 0.068 0.048 0.035 0025 0.018 0013 0.009 50% 0.667 0444 0.296 0.198 0.132 0.008 0.059 0.039 0.026 0.017 0012 0.008 0005 0.003 0002 0.002 0.001 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.054 0.045 0.038 0.031 0.026 0.010 0.004 0.001 0 0.187 0.163 0.141 0.123 0.107 0.093 0.269 0.207 0.159 0.123 0.094 0.073 0056 0.043 0.033 0.025 0.020 0.015 0.012 0.009 0.007 0.005 0.001 0.176 0.148 0.124 0.104 0.088 0.074 0.223 0.165 0.122 0.091 0.067 0.050 0.037 0.027 0.020 0.015 0.011 0.008 0.006 0.005 0.003 0.002 0.001 14 15 0.084 16 17 18 0.071 0.060 0.051 19 0 0 0.043 0.037 0.098 0.087 0.047 0.026 0.008 0.002 - 0.081 0.070 0.051 0.030 0.015 0.004 0.001 20 25 30 40 50 0,035 0.028 0.023 0.018 0.014 0.012 0.004 0.001 O 0 0 0006 0.005 0.003 0.002 0.002 0.001 0 0 0 0 0.062 0.052 0.044 0.037 0.031 0.013 0.005 0.001 0 0.016 0.007 0.001 0 0 0 0 0 o 0 0.002 0 O 0 21 hulu A w P