Eric Sander, a manager of the Plate Division for the Marble Top Manufacturing company, has the opportunity to expand the division by investing in additional machinery costing $490,000. He would depreciate the equipment using the straight-line method and expects it to have no residual value. It has a useful life of seven years. The firm mandates a required rate of return of 12% on investments. Eric estimates annual net cash inflows for this investment of $125,000 before taxes and an investment in working capital of $10,000 that will be returned at the (Click the icon to view the future value of $1 factors.) (Click the icon to view the future value of annuity of $1 factors.) project's end. (Click the icon to view the present value of $1 factors.) Required (Click the icon to view the present value of annuity of $1 factors.) Requirement 1. Calculate the net present value of this investment. (Use factors to three decimal places, X.XXX, and round all currency calculations to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value of this investment is: Required 1. Calculate the net present value of this investment. 2. Calculate the accrual accounting rate of return on initial investment for this project. 3. Should Eric accept the project? Will Eric accept the project if his bonus depends on achieving an accrual accounting rate of return of 12%? How can this conflict be resolved? Print Done - Future value of $1 factors Compound Amount of $1 (The Future Value of $1) S-P(1+r). In this table P=$1. Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 40% Periods 1 1.020 1.040 1.060 2 1.040 1.082 1.124 1.080 1.100 1.166 1.120 1.140 1.160 1.180 1.200 1.220 1.240 1.260 1.280 1.300 1.320 1.400 1 1.210 1.254 1.300 1.346 1.392 3 1.061 1.125 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.440 1.488 1.538 1.728 1.816 1907 1.588 1.638 1.690 1.742 1.960 2 2.000 4 1.082 1.170 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 2.215 2.364 2.520 2.097 2.684 2.856 2.197 2.300 2.744 3 3.036 3.842 4 5 1.104 1.217 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 2.703 2.932 3.176 3.436 3.713 4.007 5.378 5 6 1.126 1.265 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 3.297 3.635 4.002 4.398 4.827 5.290 7.530 6 7 1.149 1.316 1.504 1.714 1.949 2.211 8 1.172 1.369 1.594 1.851 2.144 2.476 9 1.195 1.423 1.689 1.999 2.358 2.773 10 1.219 1.480 1.791 2.159 2.594 3.106 11 1.243 1.539 1.898 2.332 2.853 12 1.268 1.601 2.012 2.518 13 1.294 1.665 2.133 3.138 2.720 3.452 14 1.319 1.732 2.261 2.937 3.797 4.887 15 1.346 1.801 2.397 3.172 4.177 5.474 16 1.373 1.873 2.540 3.426 4.595 6.130 17 1.400 1.948 2.693 3.700 18 1.428 2.026 2.854 19 20 21 3.996 5.560 1.457 2.107 3.026 4.316 6.116 1.486 2.191 3.207 4.661 6.727 1.516 2.279 3.400 5.034 7.400 22 23 24 1.546 2.370 3.604 5.437 8.140 1.577 2.465 3.820 5.871 8.954 1.608 2.563 4.049 6.341 9.850 25 26 27 1.641 2.666 4.292 6.848 10.835 1.673 2.772 4.549 7.396 11.918 1.707 2.883 4.822 7.988 13.110 2.502 2.826 3.185 3.583 4.023 4.508 5.042 2.853 3.278 3.759 4.300 4.908 5.590 6.353 7.206 8.157 3.252 3.803 4.435 5.160 5.987 6.931 8.005 9.223 10.604 3.707 4.411 5.234 6.192 7.305 8.594 10.086 11.806 3.479 4.226 5.117 6.176 7.430 8.912 10.657 12.708 15.112 17.922 3.896 4.818 5.936 7.288 8.916 10.872 13.215 16.012 19.343 23.298 4.363 5.492 6.886 8.599 10.699 13.264 16.386 20.175 24.759 30.288 6.261 7.988 10.147 12.839 16.182 20.319 25.421 31.691 39.374 7.138 9.266 11.974 15.407 19.742 25.196 32.030 40.565 51.186 8.137 10.748 14.129 18.488 24.086 31.243 40.358 51.923 66.542 84.954 5.054 6.866 9.276 12.468 16.672 22.186 29.384 38.741 50.851 66.461 86.504 112.139 7.690 10.575 14.463 19.673 26.623 35.849 48.039 64.072 85.071 112.455 148.024 8.613 12.056 16.777 23.214 31.948 43.736 59.568 80.731 108.890 146.192 195.391 9.646 13.743 19.461 27.393 38.338 53.358 73.864 101.721 139.380 190.050 257.916 836.683 20 10.804 15.668 22.574 32.324 46.005 65.096 91.592 128.169 178.406 247.065 340.449 1171.356 21 12.100 17.861 26.186 38.142 55.206 79.418 113.574 161.492 228.360 321.184 449.393 1639.898 22 13.552 20.362 30.376 45.008 66.247 96.889 140.831 203.480 292.300 417.539 593.199 2295.857 23 15.179 23.212 35.236 53.109 79.497 118.205 174.631 256.385 374.144 542.801 783.023 17.000 26.462 40.874 62.669 95.396 144.210 216.542 323.045 478.905 705.641 1033.590 19.040 30.167 47.414 73.949 114.475 175.936 268.512 407.037 612.998 917.333 1364.339 21.325 34.390 55.000 87.260 137.371 214.642 332.955 512.867 784.638 1192.533 1800.927 5.629 6.275 6.983 10.541 7 9.217 14.758 8 12.166 20.661 9 13.786 16.060 28.925 10 21.199 40.496 11 27.983 56.694 12 36.937 79.371 13 48.757 111.120 14 64.359 155.568 15 217.795 16 304.913 17 426.879 18 597.630 19 3214.200 24 4499.880 25 6299.831 26 8819.764 27 I Future value annuity of $1 factors Compound Amount of Annuity of $1 in Arrears* (Future Value of Annuity) (1 + r) 1 Periods 2% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 40% Periods 1 1.000 1.000 1.000 1.000 1.000 1.000 2 2.020 2.040 2.060 2.080 2.100 2.120 3 3.060 3.122 3.184 3.246 3.310 3.374 4 4.122 4.246 5 5.204 5.416 6 7 8 9 10 14 15.974 18.292 21.015 15 17.293 20.024 23.276 27.152 16 18.639 21.825 25.673 30.324 17 18 19 20 78.969 98.603 123.414 154.740 24.297 29.778 36.786 45.762 57.275 72.052 91.025 115.380 146.628 186.688 21 25.783 31.969 39.993 50.423 22 64.002 81.699 104.768 134.841 174.021 225.026 27.299 34.248 43.392 55.457 71.403 92.503 120.436 157.415 206.345 271.031 1.000 1.000 1.000 1.000 2.140 2.160 2.180 3.440 3.506 3.572 3.640 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.524 5.684 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 7.740 8.048 8.368 8.700 6.308 6.633 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 10.442 10.980 11.544 12.136 7.434 7.898 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 13.740 14.615 15.546 16.534 8.583 9.214 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 17.762 19.123 20.588 22.163 9.755 10.583 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 22.670 24.712 26.940 29.369 10.950 12.006 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 28.657 31.643 34.945 33.593 11 12.169 13.486 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 35.962 40.238 45.031 50.398 12 13.412 15.026 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 44.874 50.895 57.739 13 14.680 16.627 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 55.746 64.110 73.751 84.853 24 215 27.975 32.393 37.581 43.672 50.818 59.196 69.010 80.496 93.926 109.612 127.913 149.240 31.772 37.280 43.842 51.660 60.965 72.035 85.192 100.815 119.347 141.303 167.286 197.997 35.950 42.753 50.980 60.925 72.939 87.442 104.935 126.011 151.377 181.868 218.472 262.356 20.012 23.698 28.213 33.750 40.545 48.884 59.118 71.673 87.068 105.931 129.020 157.253 191.735 233.791 285.014 347.309 21.412 25.645 30.906 37.450 45.599 55.750 68.394 84.141 103.740 128.117 158.405 195.994 242.585 300.252 371.518 459.449 22.841 27.671 33.760 41.446 51.159 63.440 194.254 244.033 306.658 385.323 483.973 607.472 237.989 303.601 387.389 494.213 630.165 291.347 377.465 489.110 633.593 820.215 469.056 617.278 811.999 1067.280 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1 2.200 2.220 2.240 2.260 2.280 2.300 2.320 2.400 2 3.708 3.778 3.848 3.918 3.990 4.062 4.360 3 5.848 6.016 6.187 6.362 7.104 4 9.043 9.398 10.946 5 12.756 13.406 16.324 6 17.583 23.858 25.678 18.696 23.853 7 34.395 8 32.015 34.895 49.153 9 42.619 47.062 69.814 10 56.405 63.122 98.739 11 65.510 74.327 84.320 139.235 12 97.625 112.303 195.929 13 275.300 14 386.420 15 541.988 16 759.784 17 1064.697 18 1491.576 19 802.863 2089.206 20 1060.779 2925.889 21 356.443 1401.229 4097.245 22 23 24 25 26 33.671 44.312 59.156 79.954 109.182 150.334 208.333 290.088 405.272 567.377 28.845 36.618 46.996 60.893 79.543 104.603 138.297 183.601 244.487 326.237 30.422 39.083 50.816 66.765 88.497 118.155 158.659 213.978 289.494 392.484 532.750 723.461 982.251 1332.659 1806.003 32.030 41.646 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 650.955 898.092 1238.636 1706.803 2348.803 795.165 1114.634 1561.682 2185.708 3054.444 435.861 582.630 778.771 1040.358 1388.464 1850.622 5737.142 23 2443.821 8032.999 24 3226.844 11247.199 25 27 35.344 47.084 63.706 87.351 121.100 169.374 238.499 337.502 479.221 681.853 28 971.102 1383.146 1968.719 2798.706 3971.778 37.051 49.968 68.528 95.339 134.210 190.699 272.889 392.503 586.481 819.223 1185.744 1716.101 2481.586 3583.344 5164.311 4260.434 5624.772 7425.699 15747.079 26 22046.910 27 30366.674 28 Present value of $1 factors Present Value of $1 S P In this table S-$1. (1+r) Periods 2% 4% 6% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 40% Periods 1 0.980 0.962 0.943 0.926 0.909 0.893 0.877 0.862 2 0.961 0.925 0.890 0.857 0.826 0.797 0.769 0.743 3 0.942 0.889 0.840 0.794 0.751 4 0.924 0.855 0.792 0.735 5 0.906 0.822 6 0.888 0.790 0.747 0.705 0.437 7 0.871 0.760 8 0.853 0.731 0.627 0.540 9 0.837 0.703 0.592 0.500 0.424 10 0.820 0.676 0.558 0.463 0.396 0.322 0.270 11 0.804 0.650 0.527 0.429 0.350 0.287 12 0.788 0.625 0.497 13 14 15 16 0.163 0.123 17 0714 0.513 0.371 0.270 0.146 0.108 18 0.700 0.494 0.350 0.250 0.180 0.130 0.095 0.069 19 0.686 0.475 0.331 0.232 0.164 0.116 20 0.673 0.456 0.312 0.215 0.104 21 22 23 24 0.622 0.390 25 0.610 0.375 26 0.598 0.361 0.220 27 0.586 0.347 0.207 0.125 0.076 0.047 0.029 0.018 0.847 0.833 0.718 0.694 0.672 0.650 0.630 0.610 0.712 0.675 0.641 0.609 0.579 0.551 0.524 0.500 0.477 0.455 0.435 0.683 0.636 0.592 0.552 0.516 0.482 0.451 0.423 0.397 0.373 0.350 0.329 0.260 0.681 0.621 0.567 0.519 0.476 0.402 0.370 0.341 0.315 0.291 0.269 0.250 0.186 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.303 0.275 0.250 0.227 0.207 0.189 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.249 0.222 0.198 0.178 0.159 0.143 0.467 0.404 0.351 0.305 0.266 0.233 0.204 0.179 0.157 0.139 0.123 0.108 0.361 0.308 0.263 0.225 0.194 0.167 0.144 0.125 0.108 0.094 0.082 0.227 0.191 0.162 0.137 0.116 0.099 0.085 0.073 0.062 0.237 0.195 0.162 0.135 0.112 0.094 0.079 0.066 0.056 0.047 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.092 0.076 0.062 0.052 0.043 0.036 0.773 0.601 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.075 0.758 0.577 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.062 0.743 0.555 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.051 0.040 0.031 0.025 0.728 0.534 0.394 0.292 0.218 0.093 0.071 0.054 0.042 0.032 0.025 0.019 0.015 0.198 0.080 0.060 0.045 0.034 0.026 0.020 0.015 0.012 0.009 0.003 17 0.051 0.038 0.028 0.021 0.016 0.012 0.009 0.007 0.002 18 0.083 0.060 0.043 0.031 0.023 0.017 0.012 0.009 0.007 0.005 0.002 19 0.149 0.073 0.051 0.037 0.026 0.019 0.014 0.010 0.007 0.005 0.004 0.660 0.439 0.294 0.199 0.135 0.093 0.064 0.044 0.031 0.022 0.015 0.011 0.008 0.006 0.004 0.003 0.647 0.422 0.278 0.184 0.123 0.083 0.056 0.038 0.026 0.018 0.013 0.009 0.006 0.004 0.003 0.002 0.001 22 0.634 0.406 0.262 0.170 0.112 0.074 0.049 0.033 0.022 0.015 0.010 0.007 0.005 0.003 0.002 0.002 0.000 23 0.247 0.158 0.102 0.066 0.043 0.028 0.019 0.013 0.008 0.006 0.004 0.003 0.002 0.001 0.000 24 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.007 0.005 0.001 0.001 0.000 25 0.135 0.084 0.053 0.033 0.021 0.014 0.009 0.006 0.004 0.002 0.002 0.001 0.001 0.000 26 0.011 0.007 0.005 0.003 0.002 0.001 0.001 0.001 0.000 27 0.820 0.806 0.794 0.781 0.769 0.758 0.714 1 0.592 0.574 0.510 2 0.364 3 4 5 0.133 6 0.095 7 0.068 8 0.048 9 0.035 10 0.025 11 0.018 12 0.061 0.050 0.040 0.033 0.027 0.049 0.039 0.032 0.013 13 0.025 0.021 0.009 14 0.020 0.016 0.006 15 0.012 0.005 16 0.001 20 0.001 21 0.003 0.002 0.000 0.000 Present value annuity of $1 factors Present Value of Annuity $1 in Arrears* 1 (1+r) Periods 2% 10% 12% 14% 16% 18% 20% 22% 24% 1 0.980 0.962 0.943 0.926 0.909 0.893 0.877 0.862 2 1.942 1.886 1.833 1.783 1.736 1.690 1.647 1.605 3 2.884 2.775 2.673 2.577 2.487 2.402 4 3.808 3.630 3.465 3.312 3.170 3.037 2.914 2.798 5 4.713 4.452 4.212 3.993 3.791 3.605 3.433 3.274 6 5.601 5.242 4.917 4.623 4.355 4.111 3.889 3.685 7 6.472 6.002 5.582 5.206 4.868 4.564 4.288 4.039 8 7.325 6.733 6.210 5.747 5.335 4.968 4.639 4.344 9 8.162 7.435 6.802 6.247 5.759 5.328 4.946 4.607 10 8.983 8.111 7.360 11 9.787 8.760 7.887 12 10.575 9.385 13 14 15 16 17 18 19 11.348 12.106 10.563 9.295 12.849 11.118 9.712 13.578 11.652 10.106 14.292 12.166 10.477 14.992 12.659 10.828 15.678 13.134 11.158 8.384 9.986 8.853 6.710 7.139 6.495 5.938 5.453 7.536 6.814 6.194 5.660 7.904 7.103 6.424 5.842 8.244 7.367 6.628 6.002 8.559 7.606 6.811 6.145 5.650 5.216 4.833 4.494 6.142 8.851 7.824 6.974 6.265 5.668 6.373 6.467 5.818 5.749 20 16.351 13.590 11.470 21 22 23 25 26 19.523 15.622 20.121 15.983 0.806 0.794 1.457 1.424 2.322 2.246 2.174 2.106 2.042 1.981 1.923 1.868 2.690 2.589 2.494 2.404 2.320 2.241 3.127 2.991 2.864 2.745 2.635 2.532 3.498 3.326 3.167 3.020 2.885 2.759 3.812 3.605 3.416 3.242 3.083 2.937 3.837 3.619 3.421 3.241 3.076 2.925 4.031 3.786 3.566 3.366 3.184 4.192 3.923 3.682 3.465 3.269 5.029 4.656 4.327 4.035 3.776 3.543 3.335 5.197 4.793 4.439 4.127 3.851 3.606 3.387 5.342 4.910 4.533 4.203 3.912 3.656 3.427 5.468 5.008 4.611 4.265 3.962 3.695 3.459 5.575 5.092 4.675 4.315 4.001 3.726 3.483 3.268 5.162 4.730 4.357 4.033 3.751 3.503 3.283 9.122 8.022 7.120 5.222 4.775 4.391 4.059 3.771 3.518 3.295 3.097 2.492 9.372 8.201 7.250 5.273 4.812 4.419 4.080 3.786 3.529 3.304 3.104 2.494 9.604 8.365 7.366 6.550 5.877 5.316 4.843 4.442 4.097 3.799 3.539 3.311 3.109 2.496 9.818 8.514 7.469 6.623 5.929 5.353 4.870 4.460 4.110 3.808 3.546 3.316 3.113 17.011 14.029 11.764 10.017 8.649 7.562 6.687 5.973 5.384 4.891 4.476 4.121 3.816 3.551 3.320 3.116 17.658 14.451 12.042 10.201 8.772 7.645 6.743 6.011 5.410 4.909 4.488 4.130 3.822 3.556 3.323 3.118 18.292 14.857 12.303 10.371 8.883 7.718 6.792 6.044 5.432 4.925 4.499 4.137 3.827 3.559 3.325 3.120 24 18.914 15.247 12.550 10.529 8.985 7.784 6.835 6.073 5.451 4.937 4.507 4.143 3.831 3.562 3.327 3.121 2.499 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 4.514 4.147 3.834 3.564 3.329 3.122 2.499 13.003 10.810 9.161 7.896 6.906 6.118 5.480 4.956 4.520 4.151 3.837 3.566 3.330 0.847 0.833 0.820 1.566 1.528 1.492 26% 28% 0.781 1.392 30% 32% 40% Periods 0.769 0.758 0.714 1 1.361 1.331 1.224 2 4.078 4.303 3.019 3.092 2.930 2.414 3.147 2.978 2.438 3.190 3.013 2.456 3.223 3.040 2.469 3.249 3.061 1.816 1.766 1.589 2.166 2.096 1.849 2.436 2.345 2.035 2.643 2.534 2.802 2.677 2.786 2.868 2.379 3 4 5 2.168 6 2.263 7 2.331 8 9 10 11 12 13 2.478 14 3.076 2.484 15 3.088 2.489 16 17 18 19 2.497 20 2.498 21 2.498 22 2.499 23 24 3.123 2.500 225