Debra and Gary are partners in a business. They have approached each other regarding possible investments to aid their business in creating more revenue. Debra's investment would require an initial outlay of cash of $47,500 but would provide an additional revenue stream of $24,500 per year. Gary's investment would cost $55,500 and would bring in additional revenue of $27,500 per year. Both investments would provide revenue for four years. Using a discount rate of 10%, calculate the discounted payback period for each investment and determine which investment would better use the company's resources. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round intermediate calculations to the nearest whole dollar and final answers to 2 decimal places, e.s. 25.22. Ignore taxes.) Click here to view Present Value of 1 (Present Value of a Single Sum) would be a better use of the company's resources. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline 26 & 1.67342 & 1.90029 & 2.15659 & 2.77247 & 355567 & 4.54938 & 7.39635 & 939916 & 11.91818 & 15.07986 & 19.04007 & 37.85680 \\ \hline 27 & 1.70689 & 194780 & 222129 & 288337 & 3.73346 & 4.82235 & 798806 & 10.24508 & 13.10999 & 16.73865 & 2132488 & 43.53532 \\ \hline 28 & 1,74102 & 1.99650 & 2.28793 & 2.99870 & 3.92013 & 5.11169 & 8.62711 & 11.16714 & 14.42099 & 18.57990 & 23.88387 & 50.06561 \\ \hline 29 & 1.77584 & 2.04641 & 2.35657 & 3.11865 & 4.11614 & 5.41839 & 931727 & 12.17218 & 15.86309 & 20.62369 & 26.74993 & 57,57545 \\ \hline 30 & 1.81136 & 2.09757 & 2.42726 & 3.24340 & 4.32194 & 5.74349 & 10.06266 & 13.26768 & 17.44940 & 22.89230 & 29.95992 & 66.21177 \\ \hline 31 & 1.84759 & 2.15001 & 230008 & 3.37313 & 4.53804 & 609810 & 10.86767 & 14.46177 & 19.19444 & 25.41045 & 33.55511 & 76.14354 \\ \hline 32 & 1.88454 & 2.20376 & 2.57508 & 3.50806 & 4.76494 & 6.45339 & 11.73708 & 15.76333 & 21.11378 & 2820560 & 37.58173 & 87.56507 \\ \hline 33 & 1.92223 & 2.25885 & 2.65234 & 3.64838 & 5.00319 & 6.84059 & 12.67605 & 17.18203 & 23.22515 & 31.30821 & 4209153 & 100.69983 \\ \hline 34 & 1.96068 & 2.31532 & 273191 & 3.79432 & 5.25335 & 7.25103 & 13.69013 & 18.72841 & 25.54767 & 34.75212 & 47.14252 & 115.80480 \\ \hline 35 & 199989 & 2,37321 & 2.81386 & 3.94609 & 5.51602 & 7.68609 & 14.78534 & 20.41397 & 28.10244 & 38.57485 & 52.79962 & 133.17552 \\ \hline 36 & 2.03989 & 2.43254 & 289828 & 4.10393 & 5.79182 & 8.14725 & 15.96817 & 22.25123 & 30.91268 & 4281808 & 59.13557 & 153.15185 \\ \hline 37 & 208069 & 2.49335 & 2.98523 & 4.26809 & 6.08141 & 8.63609 & 17.24363 & 24.25384 & 34.00395 & 4752807 & 66.23184 & 176.12463 \\ \hline 38 & 2.12230 & 2.55568 & 3.07478 & 4.43881 & 6.38548 & 9.15425 & 1862528 & 26.43668 & 37,40431 & 52.75616 & 74.17966 & 202.54332 \\ \hline 39 & 2.16474 & 2.61957 & 3.16703 & 4.61637 & 6.70475 & 9.70351 & 20.11530 & 28.81598 & 41.14+79 & 58.55934 & 83.08122 & 232.92482 \\ \hline 40 & 2.20804 & 2.68506 & 3.26204 & $.80102 & 7.03999 & 10.28572 & 21.72452 & 31.10912 & 45.25926 & 6500087 & 93.05097 & 267.86355 \\ \hline \end{tabular} TABLE 7.2 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline 8 & .85349 & .82075 & .78941 & .73069 & .67684 & .62741 & .54027 & .50187 & .46651 & .43393 & 40388 & .32690 & 8 \\ \hline 9 & .83676 & .80073 & .76642 & .70259 & .64461 & .59190 & .50025 & .46043 & .42410 & 39092 & .36061 & .28426 & 9 \\ \hline 10 & .82035 & .78120 & .74409 & .67556 & .61391 & .55839 & .46319 & .42241 & .38554 & .35218 & 32197 & .24719 & 10 \\ \hline 11 & .80426 & .76214 & .72242 & .64958 & .58468 & .52679 & .42888 & 38753 & .35049 & 31728 & .28748 & .21494 & 11 \\ \hline 12 & .78849 & .74356 & .70138 & .62460 & .55684 & .49697 & 39711 & .35554 & .31863 & .28584 & 25668 & .18691 & 12 \\ \hline 13 & .77303 & .72542 & 68095 & .60057 & .53032 & .46884 & 36770 & 32618 & .28966 & .25751 & .22917 & .16253 & 13 \\ \hline 14 & .75788 & .70773 & .66112 & .57748 & .50507 & .44230 & 34046 & .29925 & 26333 & 23199 & 20462 & 14133 & 14 \\ \hline 15 & .74301 & .69047 & .64186 & .55526 & 48102 & .41727 & .31524 & 27454 & .23939 & .20900 & .18270 & .12289 & 15 \\ \hline 16 & .72845 & .67362 & .62317 & .53391 & .45811 & .39365 & .29189 & .25187 & .21763 & .18829 & .16312 & .10687 & 16 \\ \hline 17 & .71416 & .65720 & .60502 & .51337 & .43630 & .37136 & .27027 & 23107 & .19785 & .16963 & .14564 & .09293 & 17 \\ \hline 18 & .70016 & .64117 & .58739 & .49363 & .41552 & .35034 & .25025 & .21199 & .17986 & .15282 & .13004 & .08081 & 18 \\ \hline 19 & .68643 & .62553 & .57029 & .47464 & .39573 & 33051 & .23171 & .19449 & .16351 & .13768 & .11611 & .07027 & 19 \\ \hline 20 & 67297 & .61027 & .55368 & .45639 & .37689 & 31180 & .21455 & .17843 & .14864 & .12403 & .10367 & .06110 & 20 \\ \hline 21 & .65978 & .59539 & .53755 & .43883 & 35894 & 29416 & .19866 & .16370 & .13513 & .11174 & .09256 & .05313 & 21 \\ \hline 22 & .64684 & .58086 & .52189 & .42196 & .34185 & 27751 & .18394 & .15018 & .12285 & .10067 & .08264 & .04620 & 22 \\ \hline 23 & .63416 & .56670 & .50669 & 40573 & .32557 & .26180 & .17032 & .13778 & .11168 & .09069 & .07379 & .04017 & 23 \\ \hline 24 & .62172 & .55288 & .49193 & .39012 & 31007 & 24698 & .15770 & .12641 & .10153 & .08170 & .06588 & .03493 & 24 \\ \hline 2 & .60953 & .53939 & .47761 & .37512 & .29530 & .23300 & .14602 & .11597 & .09230 & .07361 & .05882 & .03038 & 25 \\ \hline & & & & 36069 & 812 & 21981 & 13520 & 10 & 083 & 06631 & 05252 & 02642 & 26 \\ \hline 20 & .59758 & .52623 & & .36069 & & 20737 & 519 & 09761 & 07628 & 05974 & 04689 & 02297 & 27 \\ \hline 27 & .58586 & .51340 & 45019 & .34682 & .26785 & .20137 & .12319 & 08955 & & 05382 & 87 & 01997 & 88 \\ \hline 20 & .57437 & .50088 & .43708 & .33348 & .25509 & .19563 & .11591 & .08955 & .06934 & 05382 & 03738 & 01737 & 28 \\ \hline 25 & .56311 & .48866 & .42435 & .32065 & .24295 & .18456 & .10733 & .08216 & .06304 & .04849 & .03738 & .01737 & 29 \\ \hline 30 & .55207 & .47674 & .41199 & 30832 & .23138 & .17411 & .09938 & .07537 & .05731 & .04368 & .03338 & .01510 & 30 \\ \hline 3 & .54125 & .46511 & .39999 & 29646 & .22036 & .16425 & .09202 & .06915 & .05210 & .03935 & .02980 & .01313 & 31 \\ \hline 32 & .53063 & .45377 & .38834 & 28506 & .20987 & .15496 & .08520 & .06344 & 04736 & .03545 & .02661 & .01142 & 32 \\ \hline 33 & .52023 & .44270 & .37703 & .27409 & .19987 & .14619 & .07889 & 05820 & .04306 & .03194 & .02376 & .00993 & 33 \\ \hline 3 & .51003 & .43191 & .36604 & .26355 & .19035 & .13791 & 07305 & .05340 & .03914 & .02878 & .02121 & .00864 & 34 \\ \hline 3 & .50003 & .42137 & .35538 & .25342 & .18129 & .13011 & .06763 & .04899 & 03558 & .02592 & .01894 & .00751 & 35 \\ \hline \end{tabular} Thars7.1 Futare Valne of 1 (Rature Value of a Stasle Sum) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline & & & & Future & lue of a & gle sum & FV )= Pres & ent value & (1+R)N & & & & \\ \hline (n) Periods & 2% & 2% & 3% & 4% & 5% & 6% & 8% & 9% & 10% & 11% & 12% & 15% & (w) Periods \\ \hline 1 & 1.02000 & 1.02500 & 1.03000 & 1.04000 & 1.05000 & 1.06000 & 1.00000 & 1.09000 & 1.10000 & 1.11000 & 1.12000 & 1.15000 & 1 \\ \hline 2 & 1.04040 & 1.05053 & 1.06090 & 1.08160 & 1.10250 & 1.12360 & 1.16640 & 1.18810 & 1.21000 & 1.23210 & 1.25440 & 1.32250 & 2 \\ \hline 3 & 1.06121 & 1.07689 & 1.09273 & 1.12486 & 1.15763 & 1.19102 & 1.25971 & 1.29503 & 133100 & 136763 & 1.40493 & 152088 & 3 \\ \hline 4 & 1.08243 & 1.10381 & 1.12551 & 1.16986 & 1.21551 & 1.26248 & 136049 & 1.41158 & 1.46410 & 1.51807 & 157352 & 1.74901 & 4 \\ \hline 5 & 1.10408 & 1,13141 & 1.15927 & 1.21665 & 1.27623 & 139823 & 1.46953 & 1.53862 & 1.61051 & 1.68506 & 1.76234 & 201136 & 5 \\ \hline 6 & 1.12616 & 1.15969 & 1.19605 & 1.26532 & 134010 & 1.41852 & 1.58687 & 1.67710 & 1.77156 & 1.87041 & 1.97382 & 2.31306 & 6 \\ \hline 7 & 1.14869 & 1.18869 & 1.22987 & 1.31593 & 1.40710 & 1.50363 & 1.71382 & 1.82804 & 1.94872 & 2.07616 & 2.21068 & 266002 & 7 \\ \hline 8 & 1.17166 & 1.21840 & 1.26677 & 136857 & 1.47746 & 1.59385 & 185093 & 1.99256 & 2.14359 & 2.30454 & 2,47596 & 3.05902 & 8 \\ \hline 9 & 1.19509 & 1.24886 & 1.30477 & 1.42331 & 1.55133 & 1.68918 & 199000 & 2.17189 & 2.35795 & 2.55800 & 2.77308 & 3.51788 & 9 \\ \hline 10 & 1.21899 & 1.28008 & 1.34392 & 1.48024 & 1.62889 & 1.79085 & 2.15892 & 2.36736 & 259374 & 283942 & 3.10585 & 404556 & 10 \\ \hline 11 & 1.24337 & 1.31209 & 1.38478 & 1.33945 & 1.71034 & 1.89830 & 233164 & 2.58043 & 2.85312 & 3.15176 & 3.47855 & 465299 & 11 \\ \hline 12 & 1.26824 & 1.34489 & 1.42576 & 1.60103 & 1.79586 & 201220 & 251817 & 281267 & 3.13843 & 3.49845 & 3.89596 & 5.35025 & 12 \\ \hline 13 & 1.29361 & 137851 & 1.46853 & 1.66507 & 1.88565 & 2.13293 & 2.71962 & 3.06581 & 3.45227 & 3.88328 & 436349 & 6.15279 & 13 \\ \hline 14 & 1.31948 & 1.41297 & 1.51259 & 1.73168 & 1.97993 & 2.26090 & 293719 & 334173 & 3.79750 & 431044 & 488711 & 7,07571 & 14 \\ \hline 15 & 1.34587 & 1.44830 & 1.55797 & 1,80094 & 2.07893 & 2.39656 & 3.17217 & 3.64248 & 4.17725 & 4.78459 & 5.47357 & 8.13706 & 15 \\ \hline 16 & 1.37279 & 1.48451 & 1.60471 & 1.87298 & 2.18237 & 254035 & 3.12596 & 397031 & 459497 & 531069 & 6. 13039 & 9.35762 & 16 \\ \hline 17 & 1.40024 & 1.52162 & 1.65285 & 194790 & 2.29202 & 2.69277 & 3.70002 & 432763 & 5.0547 & 5.89509 & 6.86604 & 10.76126 & 17 \\ \hline 18 & 1.42825 & 1.55966 & 1.70243 & 2002382 & 240662 & 285434 & 399602 & 4.71712 & 3.55992 & 6.54355 & 7.6899? & 12.37545 & 18 \\ \hline 19 & 1.45681 & 1.59865 & 1.75351 & 2.10685 & 2.52695 & 302560 & 431570 & 5.14166 & 6.11591 & 7.26334 & 8.61276 & 14.23177 & 19 \\ \hline 20 & 1.48595 & 1.63862 & 1.80611 & 219112 & 2.65330 & 3.20714 & 4.66096 & 56041 & 672750 & 8.06231 & 9.64629 & 16.36654 & 20 \\ \hline 21 & 1.51567 & 1.67958 & 1.86029 & 2.27877 & 2.78596 & 3.39956 & 5.03383 & 6.10581 & 7.40025 & 894917 & 10.80385 & 18.82152 & 21 \\ \hline 22 & 1.54598 & 1.72157 & 1.91610 & 236992 & 292526 & 3.60354 & 5.4365t & 6.65860 & 8.1+02a & 9.93357 & 12.10031 & 21.6475 & 22 \\ \hline 23 & 1.57690 & 1.76161 & 1.97359 & 246472 & 3.07152 & 3.81975 & 587146 & 7.25787 & 8.95+30 & 11.02627 & 13.55235 & 24.89146 & 23 \\ \hline 24 & 1.60844 & 1.80873 & 203279 & 256390 & 322510 & 4.04893 & 634118 & 7.91108 & 9.84973 & 12.23916 & 15.17863 & 28.62518 & 24 \\ \hline 25 & 1.64061 & 1.85394 & 2.0937s & 266584 & 3.38635 & 4.29187 & 6.84847 & 862306 & 10.83471 & 13.58546 & 17.00000 & 3291895 & 25 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline & & \multirow{2}{*}{\multicolumn{2}{|c|}{=F}} \\ \hline \multirow{2}{*}{\multicolumn{14}{|c|}{\begin{tabular}{l} TABHB 7.1 \\ Present Value of an Ordinary Annuity of 1 \end{tabular}}} \\ \hline \multicolumn{5}{|c|}{ Present Valne of an Ordinary Annuity of 1} & & & & & & & & & \\ \hline & & & Presen & int value & ordina & ary anno & P & ayment & R(11+1 & RN1) & & & \\ \hline \begin{tabular}{l} (n) \\ Periods \end{tabular} & 2% & 21/2% & 3% & 4% & 5% & 6% & 8% & 9% & 10% & 11% & 12% & 15% & \begin{tabular}{l} (n) \\ Periods \end{tabular} \\ \hline 1 & 98039 & .97561 & .97087 & .96154 & .95238 & 94340 & 92593 & 91743 & 90909 & .90090 & 89286 & 86957 & 1 \\ \hline 2 & 1.94156 & 1.92742 & 1.91347 & 1.88609 & 1.85941 & 1.83339 & 1.78326 & 1.75911 & 1.73554 & 1.71252 & 1.69005 & 1.62571 & 2 \\ \hline 3 & 2.88388 & 2.85602 & 2.82861 & 2.77509 & 2.72325 & 267301 & 257710 & 253130 & 2.48685 & 2.44371 & 2,40183 & 2.28323 & 3 \\ \hline 4 & 3.80773 & 3.76197 & 3.71710 & 3.62990 & 3.54595 & 3.46511 & 331213 & 3.23972 & 3.16986 & 3.10245 & 3.03735 & 2.85498 & 4 \\ \hline 5 & 4.71346 & 4.64583 & 4.57971 & 4.45182 & 4.32948 & 4.21236 & 3.99271 & 3.88965 & 3.79079 & 3.69590 & 3.60478 & 3.35216 & 5 \\ \hline 6 & 5.60143 & 5.50813 & 5.41719 & 5.24214 & 5.07569 & 4.91732 & 4.62288 & 4.48592 & 4.35526 & 4.23054 & 4.11141 & 3.7848 & 6 \\ \hline 7 & 6.47199 & 6.34939 & 6.23028 & 6.00205 & 5.78637 & 5.58238 & 5.20637 & 5.03295 & 4.86842 & 4.71220 & 4.56376 & 4.16042 & 7 \\ \hline 8 & 7.32548 & 7.17014 & 7.01969 & 6.73274 & 6.46321 & 6.20979 & 5.74664 & 5.53482 & 533493 & 5.14612 & 4.96764 & 4.48732 & 8 \\ \hline 9 & 8.16224 & 7.97087 & 7.78611 & 7.43533 & 7.10782 & 6.80169 & 6.24689 & 5.99525 & 5.75902 & 5.53705 & 5,32825 & 4.77158 & 9 \\ \hline 10 & 8.98259 & 8.75206 & 8.53020 & 8.11090 & 7.72173 & 7.36009 & 6.71008 & 6.41766 & 6.14457 & 5.83923 & 5.65022 & 5.01877 & 10 \\ \hline 11 & 9.78685 & 9.51421 & 9.25262 & 8.76048 & 8.30641 & 7.88687 & 7.13896 & 6.80519 & 6.49506 & 6.20652 & 5.93770 & 5.23371 & 11 \\ \hline 12 & 10.57534 & 10.25776 & 9.95400 & 9.38507 & 8.86325 & 8.38384 & 7.53608 & 7.16073 & 6.81369 & 6.49236 & 6.19437 & 5.42062 & 12 \\ \hline 13 & 11.34837 & 10.98319 & 10.63496 & 9.98565 & 9.39357 & 8.85268 & 7.90378 & 7.48690 & 7.10336 & 6.74987 & 6.42355 & 5.58315 & 13 \\ \hline 14 & 12.10625 & 11.69091 & 11.29607 & 10.56312 & 9.89864 & 9.29498 & 8.24424 & 7.78615 & 7.36669 & 6.98187 & 6.62817 & 5.72448 & 14 \\ \hline 15 & 12.84926 & 12.38138 & 11,93794 & 11.11839 & 10.37966 & 9.71225 & 8.55948 & 8.06069 & 7.60608 & 7.19087 & 6.81086 & 5.84737 & 15 \\ \hline 16 & 13.57771 & 13.05500 & 12.56110 & 11.65230 & 10.83777 & 10.10590 & 8.85137 & 8.31256 & 7.82371 & 7.37916 & 6.97399 & 5.95424 & 16 \\ \hline 17 & 14.29187 & 13.71220 & 13.16612 & 12.16567 & 11.27407 & 10.47726 & 9.12164 & 8.54363 & 8.02155 & 2.54879 & 2.11963 & 6.04716 & 17 \\ \hline 18 & 14.99203 & 14.35336 & 13.75351 & 12.65930 & 11.68959 & 10.82760 & 9.37189 & 8.75563 & 8.20141 & 7.70162 & 7.24967 & 6.12797 & 18 \\ \hline 19 & 15.67846 & 14.97889 & 14.32380 & 13.13394 & 12.08532 & 11.15812 & 9.60360 & 8.95012 & 8. 36492 & 7.83929 & 7.36578 & 6.19823 & 19 \\ \hline 20 & 16.35143 & 15.58916 & 14.87747 & 13.59033 & 12.46221 & 11.46992 & 9.81815 & 9.12855 & 8.51356 & 7.96333 & 7.46944 & 6.25933 & 20 \\ \hline 21 & 17.01121 & 16.18455 & 15.41502 & 14.02916 & 12.82115 & 11.76408 & 10.01680 & 9.29224 & 8.64869 & 8.07507 & 7.56200 & 6.31246 & 21 \\ \hline 22 & 17.65805 & 16.76541 & 15.93692 & 14,45112 & 13.16300 & 12.04158 & 10.20074 & 9.44243 & 8.77154 & 8.17574 & 7.64465 & 6.35866 & 22 \\ \hline 23 & 18.29220 & 17.33211 & 16.44361 & 14.85684 & 13.48857 & 12.30338 & 10.37106 & 9.58021 & 8.88322 & 8.26643 & 7.71843 & 639884 & 23 \\ \hline \end{tabular}