EXAMPLE OF QUESTIONS LAYOUT NOT REAL NUMBERS^^

(Present Value of $1 Factor Table)

(Present Value of Annuity $1 Factor Table)

(future value of $1 factor table)

(future value annuity of $1 factor table)

(Click the icon to view the present value factor table.) Griffin Industries is evaluating whether to invest in solar panels to provide some of the electrical needs of its main office building in Charlotte, North Carolina. The solar panel project would cost $525,000 and would provide cost savings in its utility bills of $55,000 per year. It is anticipated that the solar panels would have a life of 20 years and would have no residual value. (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value factor table.) Read the requirements. (Click the icon to view the future value annuity factor table.) Requirement 1. Calculate the payback period in years of the solar panel project. Determine the formula, then calculate the payback period. (Round your answer to two decimal places.) Expected annual net cash inflow Initial investment 525,000 = = Payback period 9.55 years 55,000 Requirement 2. If the company uses a discount rate of 8%, what is the net present value of this project? (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) The net present value of the project is $ 14,990. Requirement 3. If the company has a rule that no projects will be undertaken that have a payback period of more than five years, would this investment be accepted? If not, what arguments could the energy manager make to try to obtain approval for the solar panel project? No because the payback period is more than five years. Choose from any dron-down list and then click Check Answer Requirement 3. If the company has a rule that no projects will be undertaken that have a payback period of more than five years, would this investment be accepted? If not, what arguments could the energy manager make to try to obtain approval for the solar panel project? No because the payback period is more than five years. Select arguments the energy manager could make. The payback method is only focusing on time, not on profitability. The payback period is not considering the cash inflows that occur after that period. Requirement 4. What would you do if you were in charge of approving capital investment proposals? (lf a box is not used in the table, leave the box empty; do not select a label.) Choose from any drop-down list and then click Check Answer. %x) E12-23A (similar to) A Question Martin Industries is evaluating whether to invest in solar panels to provide some of the electrical needs of its main office building in Orlando, Florida. The solar panel project would cost $625,000 and would provide cost savings in its utility bills of $40,000 per year. It is anticipated that the solar panels would have a life of 15 years and would have no residual value. 1 (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value factor table.) (Click the icon to view the future value annuity factor table.) Read the requirements. 9 Requirement 1. Calculate the payback period in years of the solar panel project. Determine the formula, then calculate the payback period. (Round your answer to two decimal places.) ] = Payback period A Requirements 1. Calculate the payback period in years of the solar panel project. 2. If the company uses a discount rate of 10%, what is the net present value of this project? 3. If the company has a rule that no projects will be undertaken that have a payback period of more than five years, would this investment be accepted? If not, what arguments could the energy manager make to try to obtain approval for the solar panel project? 4. What would you do if you were in charge of approving capital investment proposals? 0.636 Periods) 1% | 2% | 3% | 4% | 5% | 6% 8% | 10% | 12% | 14% | 16% | 18% | 20% 0.990 10.980 10.971 10.962 10.952 10.943 0.926 10.909 0.893 10.877 10.862 | 0.847 10.833 10.980 | 0.961 10.943 | 0.925 10.907 10.890 | 0.857 10.826 10.797 10.769 | 0.743 0.718 10.694 0.971 0.942 0.915 10.889 10.864 10.840 | 0.794 0.751 0.712 0.675 | 0.641 0.609 0.579 0.961 | 0.924 0.888 | 0.855 | 0.823 | 0.792 0.735 0.683 0.592 0.552 0.516 0.482 0.951 | 0.906 0.863 0.822 0.784 0.747 10.6811 10.621 0.567 0.519 0.476 0.437 0.402 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 10.456 | 0.410 0.370 0.335 0.933 | 0.871 0.813 0.760 | 0.71 0.665 0.583 0.513 0.452 10.400 0.354 0.314 0.279 0.923 | 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 10.266 0.233 0.914 | 0.837 0.766 10.703 | 0.645 | 0.592 0.500 0.424 0.361 10.308 10.263 10.225 0.194 10.905 | 0.820 0.744 0.676 | 0.614 | 0.558 0.463 || 0.386 | 0.322 10.270 10.227 10.191 0.162 10.896 | 0.804 0.722 | 0.650 | 0.585 | 0.527 0.429 | 0.350 | 0.287 | 0.237 | 0.195 | 0.162 0.135 10.887 | 0.788 0.701 | 0.625 | 0.557 | 0.497 10.397 | 0.319 | 0.257 | 0.208 | 0.168 | 0.137 | 0.112 10.879 | 0.773 0.681 10.601 | 0.530 | 0.469 0.368 | 0.290 | 0.229 | 0.182 | 0.145 | 0.116 | 0.093 10.870 | 0.758 0.661 10.577 | 0.505 | 0.442 0.340 | 0.263 | 0.205 10.160 10.125 | 0.099 10.078 10.861 | 0.743 0.642 0.555 10.481 0.417 0.315 10.239 | 0.183 | 0.140 | 0.108 | 0.084 | 0.065 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.742 | 0.552 | 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 10.672 | 0.453 | 0.307 | 0.208 | 0.142 | 0.097 | 0.046 | 0.022 | 0.01 | 0.005 | 0.003 | 0.001 | 0.001 34567890 84b8%89 | 1.528 | Periods) 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20%, 10.990 | 0.980 | 0.971 10.962 | 0.952 | 0.943 | 0.926 0.909 10.893 10.877 10.862 10.847 10.833 1.970 1.942 1.913 | 1.886 1.859 1.833 1.783 1.736 1.690 1.6471 1.605 1.566 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 12.322 2.246 2.174 2.106 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.853 4.713 4.580 14.452 4.329 4.212 3.993 13.791 3.605 13.433 3.274 13.127 12.991 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.11 3.889 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 14.288 4.039 3.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 9.471 8.983 8.530 8.111 7.722 17.360 6.710 16.145 5.650 5.216 4.833 4.494 4.192 678 10.368 19.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 12.134 | 11.348 | 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 13.004 12.106 | 11.296 | 10.563| 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 13.865 12.849 | 11.938| 11.118| 10.380 | 9.712 8.559 17.606 6.811 6.142 5.575 5.092 18.046 | 16.351| 14.877 | 13.590 | 12.462 | 11.470 | 9.818 8.514 7.469 6.623 5.929 5.353 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 32.835 | 27.355 | 23.15| 19.793| 17.159 | 15.046| 11.925 | 9.779 | 8.244 | 7.105 || 6.233 15.548 4.327 4.439 4.533 14.611 4.675 4.870 4.948 4.979 4.997 Periods | | | | | | 1% 1.010 1.020 1.030 1.041 1.051 2% 11.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 15% 1.050 1.103 1.158 1.216 1.276 | 6% 1.060 1.124 1.191 1.262 1.338 18% 1.080 1.166 1.261 1.361 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14%, 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 34567890 TBB46%88% 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 1.243 1.268 1.116 1.127 1.138 1.149 1.161 1.294 1.319 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 1.710 1.796 1.886 1.980 2.079 1.898 2012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 12.853 3.138 3.452 13.797 4.177 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 5.117 5.936 6.886 7.988 19.266 6.176 7.288 8.599 10.147 11.974 1.346 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.653 3.386 4.322 7.040 3.207 4.292 5.743 10.286 4.661 6.848 10.063 21.725 6.727 10.835 17.449 45.259 9.646 17.000 29.960 93.051 13.743 26.462 50.950 188.884 19.461 40.874 85.850 378.721 27.393 62.669 143.371 750.378 38.338 195.396 237.376 1,469.772 Periods 5% | 1% 1.000 2.010 3.030 4.060 5.101 14% 1.000 2.140 12% 1.000 2020 3.060 4.122 5.204 13% 1.000 2.030 3.091 4.184 5.309 14% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 1.000 2.050 3.153 4.310 5.526 16% 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 11.491 13.181 8% 1.000 2.080 3.246 4.506 5.867 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 3.440 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7. 154 6.152 7.214 8.286 9.369 10.462 6.468 7.662 8.892 10.159 11.464 7.336 8.923 10.637 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 12.488 345 67899 HQ84B%89% 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 14.487 4.921 6.610 8.536 10.730 13.233 16.085 19.337 23.045 27.271 32.089 37.581 43.842 6.802 8.142 19.549 11.027 12.578 14.207 15.917 17.713 19.599 21.579 20% 1.000 2.200 3.640 5.368 7.442 19.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 8.977 11.414 14.240 17.519 21.321 25.733 30.850 36.786 43.672 51.660 19.442 12.142 15.327 19.086 23.521 28.755 34.931 42.219 50.818 60.965 11.567 12.683 13.809 14.947 16.097 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 18.292 20.024 14.972 16.870 18.882 21.015 23.276 16.645 18.977 21.495 24.215 27.152 18.531 21.384 24.523 27.975 31.772 20.655 24.133 28.029 32.393 37.280 22.019 28.243 34.785 48.886 24.297 32.030 40.568 60.402 26.870 36.459 47.575 75.401 29.778 41.646 56.085 95.026 33.066 47.727 66.439 120.800 36.786 54.865 179.058 154.762 45.762 73.106 113.283 259.057 57.275 72.052 91.025 115.380 146.628 186.688 98.347 133.334 181.871 1249.214 342.603 1471.981 164.494 241.333 1356.787 1530.312 | 790.948 1,181.882 1442.593 | 767.091 | 1,342.025 | 2,360.757 14,163.213 17,343.858