Excaliber Is considering the acquisition of s $259,180 machine that is expected to produce annual savings In cash operating costs of $80,000 over the next nine years. If Excaliber uses the Internal rate of return (IRR] to evaluate new Investments and the company has a hurdle rate of 20%%, which of the following statements Is correct, using the tables that follow? Future Value of $1 28% Periods 4% 12% 14% 1 1.848 1. BEE 1.888 1. 180 1. 128 1.148 1. 168 1. 188 1.280 1.082 1. 124 1. 166 1.218 1.254 1.380 1.346 1.393 1.448 IN 1. 125 1.191 1.268 TEE . T 1.48 1.482 1.561 1.643 1.728 686 T 1.178 1.263 1.361 1.464 1.574 1.689 1.811 2.874 1.217 1.338 1.469 1.611 1.762 1.925 2.181 2.288 2.488 1.265 1.419 1.587 1.772 1.974 2.195 2.437 2.986 1.714 3.583 1.316 1.584 1.949 2.211 2.582 2.827 3.186 1.369 1.594 1.851 2. 144 2.476 2.853 3.279 3.759 4.380 5. 168 1.423 1.698 1.999 2.359 2.773 3.252 4.436 1.488 1.791 2.159 2.594 3.186 3.787 4.412 5.234 6.192 Future Value of a Series of $1 Cash Flows 14" 18% Periods 4% 8% 1 8 12 1.0Be 1. BEE 1.080 1.08B 1.080 1.080 1.BBB 1.080 T 2.848 2.868 2.088 2.180 2. 128 2.148 2. 168 2.188 2.228 3.184 3.246 3.318 3.374 3.448 3.58 3.572 3.648 3.122 4.247 4.375 4.580 4.641 4.779 4.921 5.867 5.215 5.368 7.442 .416 5.637 5.867 5.185 5.353 6.618 5.877 7.15 EE9. 5.975 7.336 7.716 8. 115 8.536 8.97 9.442 7.898 8.394 8.923 9.487 18.089 BEL. BT 11.414 12.142 12.916 9.214 9.898 18.637 11.436 12.380 FEZ' ET 14.248 15.327 16.499 18.583 11.491 12.488 13.588 14.776 16. 085 17.519 19.886 28 .799 13.181 14.487 17.549 25.959 12.086 BE6'ST LEE'ST 21.321 23.521 Present Value of $1 Periods 4% EX 12% 14% 16% 18% 28% 8.962 8.943 3.926 3.989 8.893 3.877 J.862 8.847 FERB 8.69 8.925 368 8 3.857 3.826 3.79 3.769 8.743 8.718 8.889 3.848 3.794 3.751 3.712 3. 675 8.641 3.689 3.579 3.482 3.792 8.683 3.636 3.592 3.552 8.516 3.855 3.822 3.747 3.681 3.621 3.567 3.519 3.476 3.437 8.482 3.785 3.638 3.564 3.587 3.456 3.418 3.378 8.335 8.798 3. 768 8.665 B.583 3.513 8.452 8.480 8.354 3.314 8.279 3.731 8.627 3.548 3.467 3.48 8. 351 8.385 3.266 a.233 3.592 3.424 3.361 3.388 8.263 8.225 3.154 18 8.676 8.558 3.463 3.386 3.322 8.278 3.227 8. 191 8. 162 Present Value of a Series of $1 Cash Flows Periods 18% 12% 14% 16% 28% 1 8.962 8.943 8.926 8.989 F68 8 8.877 8.862 8.847 8.833 1.886 1.833 1.783 1.736 1.698 1.647 1.685 1.566 1.528 IN 2.775 2.673 2.577 2.487 2.482 2.322 2.246 2.174 2.186 3.638 3.465 3.312 3.178 LEBE 2.914 2.798 2.698 2.5898.751 8.675 8.689 8.794 8.641 8.889 3.848 3.712 8.579 8.735 8.683 3.636 3.592 3.552 8.516 3.482 3.855 8.792 3.567 3.519 3.476 8.437 8.482 3.747 8.681 3.621 3.638 3.564 3.587 3.456 3.418 3.378 SEEB 8.798 3.785 3.583 8.513 3.452 3.480 3.354 3.314 8.279 3.768 3.665 3.351 3.385 3.266 EEZ E TELE 3.627 3.548 3.467 3.484 8.5BE 8.424 3.361 3.388 8.263 8 . 225 8.194 B . THE 3.592 8.463 3.322 3.227 3.191 3.676 8.558 3.386 8.278 8.162 Present Value of a Series of $1 Cash Flows 12% 14% 18% Periods 8.962 3.943 3.926 3.989 3.893 8.247 3.862 3.847 8.833 1.647 1.685 1.566 1.528 1.886 1.833 1.783 1.736 1.698 2.482 2.322 2.246 2.174 2.186 2.775 2.673 2.577 2.48 2.914 2.798 2.698 2.589 3.638 3.465 3.312 3.178 F66.E 3.791 3.685 3.274 3.127 2.991 4.452 4.212 5.242 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 6.082 5.582 5.286 4. 868 4.564 4.288 3.812 3.685 1.639 4.344 4.87 EEL'S 5. 218 5.747 SEE'S 4.968 4.946 1.687 FBE 4 7.435 5.247 5.759 5.328 4.494 4.192 8. 111 7.368 6.718 6.145 5.658 5.216 FER Mukigle Choice O The machine's IRR is approximately 20%%, and the machine ahauled be acquired. O The machine's IRR ia approximately 18%, and the machine ahauled be acquired. O All of the aletermenta are false. O The machine's IRR ia leas them 4%, and the machine should not be acquired. O The machine's IRR ia approximately 18%, and the machine should not be acquired.2 Nelson Company owes money to Nash Company for the purchase of equipment. Nash Company has given Nelson the following payment options: L. Immediate payment In full of $28,000. Il. Annual payments of $11,000 made at the end of each of the next three years. Ill. A single payment of $38,000 made at the end of three years. =Book Assume that both Nelson and Nash use a 12% Interest rate compounded annually. What option would Nash prefer, and what is the present value of that option? Ack Multiple Choice O Option Ill. $25.172 O Option I, $25,550. O Option Ill. $27,056. O Option II, $26.422 O Option I, $28,000.3 Grenada Company Is contemplating the acquisition of a machine that costs $55,000 and promises to reduce annual cash operating costs by $12,000 over each of the next 6 years. PV of $1 (i = 16%; n = 6): 0.410 PV of a series of $1 cash flows (i = 16%, n = 6) : 3. 685 =Book Which of the following is a proper way to evaluate this Investment if the company desires a 16% return on all Investments? Ask Multiple Choice O $55,000 versus - $12 000 * 3.685. O $55,000 versus - $12000 x 6. O $55,000 x 0.862 versus - $12,000 x 3.685. O $55,000 versus - $72,000 x 3.685. O $55,000 versus - $72,000 x 0.410.Norton Company has a 4% compound annual Interest rate. If the firm Invests $90,000 today, how much will have accumulated by the end of eight years? Use appendix Table 1, Table 2, Table 3 and Table 4. -Book Multiple Choice Ask O None of the answers Is correct. O $92,250 O $123,210. O $272,730. O $387.000.Check my wo 5 You want to buy a new car In five years. You want to have saved $29,000 by then. You can invest $4,000 at the end of each of the next five years at an Interest rate of 4% compounded annually. Will you have enough money at the end of the fifth year? Use appendix Table 1, Table 2, Table 3 and Table 4. =Book Ack Multiple Choice O Yes. You have $7,336 more than you need. O No. You are short $6.404. O No. You are short $7.336. O None of the answers Is correct. O Yes. You have $6.404 more than you need.Check my work 6 You estimate that it will take five years to complete your college education. Your parents want to Invest enough money today at an Interest rate of 8% compounded annually to allow you to withdraw $23,000 at the end of each year for the next five years. with nothing left at the end. The amount of money to Invest today Is: Use appendix Table 1, Table 2, Table 3 and Table 4. :Book Multiple Choice O $115,000. O $91,839. O $85,959. O $33.790. O None of the answers Is correct.A new machine that costs $268,804 is expected to save annual cash operating costs of $70,00 0 over each of the next eight years. Using the tables that follow, the machine's Internal rate of return Is: Future Value of $1 Periods 12% 14% 18% 28 1 1.848 1.868 1.BHE 1. 128 1.148 1. 168 1. 189 1.280 1.082 1. 124 1. 166 1.218 1.254 1.3BE 1.346 1.393 1.448 1. 125 1. 191 1.268 1.331 1.485 1.482 1.561 1.643 1.728 1. 178 1.263 1.361 1.464 1.574 1.689 1.811 1.939 2.874 1.217 1.338 1.469 1.611 1.762 1.925 2.181 2.288 2.488 umbwN 1.265 1.419 1.587 1.772 1.974 2.195 2.437 2.780 2.986 1.316 1.584 1.714 1.949 2.211 2.582 2.827 3.186 ERS'E 1.369 1.594 1.851 2.144 2.476 2.853 3.279 3.759 4.380 1.423 1.698 1.995 2.359 2.773 3.252 3.883 4.436 5.168 10 1.488 1.791 2.159 2.594 3.186 3.787 4.412 5.234 6.192 Future Value of a Series of $1 Cash Flows Periods 12% 14% 16 1.080 1.0Be 1.080 1.080 1. 080 1.080 1.080 1. 0Be 1. 0Be 2.848 2. B68 2.848 2.180 2. 128 2.148 2. 168 2.188 2.228 3.122 3.184 3.246 3.318 3.374 3.448 3.586 3.572 3.648 4.247 4.375 4.586 4.641 4.779 4.921 5.867 5.215 5.368 5.416 LE9'S 5.867 6.185 6.353 6.618 6.877 7.154 7.442 FE9 9 5.975 7.336 7.716 8. 115 8.536 8.977 9.442 BE6 6 7.898 8.394 8.923 9.487 18.089 11.414 12. 142 12.916 9.214 9.898 18.637 11.436 12.380 13.233 14.248 15.327 16.499 ERS BI 11.491 12.488 13.580 14.776 16. 085 17.519 19.086 28.799 18 12.086 13. 181 14.487 15.938 17.549 19.337 21.321 23.521 25.959 Present Value of $1 Periods 4% 6X 12% 16% 18% 3.962 8.943 8.926 8.989 8.893 8.877 8.862 8.847 3.925 3.898 8.857 3. 826 3.797 8.769 8.743 8.718 8.694 3.889 8.848 3.794 a.751 8.712 8.675 3.641 8.689 8.579 3. 855 3.792 3.735 8.683 3.636 8.592 8.552 3.516 8.482 3.822 3. 747 3.681 a.621 8.567 8.519 8.476 8.437 8.482 3.798 8.785 8.564 8.587 3.456 8.418 3.378 SEE B 3.768 8.665 ERS'B 3.513 3.452 3.480 3.354 3.314 8.279 TEL'E 8.627 8.548 3.467 8.484 8.351 8.385 3.266 FEZ'B 3.592 3.580 3.424 3.361 3.388 3.263 3.225 8.194 3.676 8.558 8.463 3.386 8.322 8.278 8.227 8. 191 8.162 Present Value of a Series of $1 Cash Flows Periods 4% 12% 14% 16% 18%7 3.889 8.848 8.794 8.751 8.712 8.675 8.641 8.689 8.579 8 . 855 8.792 8.735 8.683 3.636 8.592 8.552 8.516 8.482 3.747 8.681 8.621 8.567 8.519 8.476 8.437 8.482 a.822 3.798 8.785 BE9 8 a.564 3.587 8.456 3.418 8.378 8.335 8. 768 3.665 3.583 8.513 3.452 8.480 3.354 3.314 8.279 8.731 8.627 a.548 3.467 3.484 8.351 3.385 B.266 FEZ'E 3. 780 8.592 3.424 3.361 8.388 8.263 8.225 8. 194 8. 162 18 8.676 8.558 8.463 8.386 8.322 8.278 8.227 a.191 Present Value of a Series of $1 Cash Flows EX 12% 14% 16% 18% 28% Periods 8.962 8.943 8.926 8.989 8.893 8.877 8.862 8.847 1. 886 FER T 1.783 BELT 1.698 1.647 1.685 1.566 1.528 2.775 2.673 2.577 2.487 2.482 2.322 2.246 2.174 2.186 BE9. E 3.465 3.312 3.178 2.914 2.798 2.698 2.589 4.452 4.212 3.993 3.791 3.685 FEFE 3.274 3.127 2.991 5.242 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 5.082 5.582 5.286 4. 868 4.564 4.288 4.835 3.812 3.685 6.218 5.747 5.335 1.968 4.639 4.344 4.878 7.435 6.882 6.247 5.759 5.328 4.946 4.687 4.383 18 8.111 7. 368 6.718 6.145 5.658 5.216 FER 4.494 4.192 Mukiple Choice O O approximately 18%. O approximately 18%. O Name of the crawera in earrect. O approximately 20%