Exercise 14-14 (Algo) Comparison of Projects Using Net Present Value [LO14-2] Labeau Products, Limited, of Perth, Australia, has $26,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Investment required Annual cash inflows Single cash inflow at the end of 6 years Life of the project The company's discount rate is 12%. Invest in Project X $ 26,000 $ 8,000 Invest in Project Y $ 26,000 $ 50,000 6 years 6 years Click here to view Exhibit 14B-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project X. 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the net present value of Project X. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.) Net present value EXHIBIT 1481-19 Present Value of $1;1(1) Periods 2 5% 4% 6% 0.962 0.952 0.943 0.925 0.907 0.890 756 8% 9% 10% 11% 12% 0935 0.926 0.917 0909 0.901 0.393 0.873 0.857 3 0859 0.864 0.840 0816 0.794 4 0.855 0.823 0.792 0.763 0.735 0.708 5 0822 0.784 0.747 0.713 6 0.790 0,746 0.705 3 0.760 0.7110665 N 9 0.703 0.645 10 0676 0614 11 0.650 0.585 12 13 15 16 17 15 19 20 21 0419 0359 294 22 23 24 25 26 0361 0281 27 0347 0248 25 29 30 40 0.15 0.116 000 0.333 0.255 0.196 0.321 0.241 0385 0.141 0.107 0.082 0.099 0.075 6.308 0.2310174 0.1SE 646 0.032 0208 0142 0097 0.067 18% 19% 21% 22% 17% 13% 14% 15% 20% 1696 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0833 0.826 0.820 | 0813 0.842 0826 0.812 0.797 0783 0.769 0.756 0.743 0.731 0718 0.706 0694 0683 0.672 0.661 0.675 0.658 0641 0624 0609 0.593 0.579 0.564 0.551 0517 0524 0.512 0.772 0.751 0731 0.712 0691 0437 0423 0410, 0.683 0.659 0636 0613 0.592 0.572 0.552 0534 0.516 0.499 0.482 0.467 0451 0328 0.419 0.402 0386 0370 0.355 0341 0681 0.650 06210593 0.567 0.543 0.519 0497 0.476 0456 0.437 0289 0.275 0.262 0.666 0.630 0.596 0.564 0.535 0307 0480 0.456 0432 0410 0.390 0.370 0.352 0.335 0319 0.30 0452 0.425 0,400 0547 0.513 0.482 0.376 0.354 0335 0314 0.296 0.279 026 024 0235 0222 0210 0.623 0.583 0.327 0.105 0404 0.376 0.351 6191 179 0.358. 0215 0266 0.249 0233 0.218 0204 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0434 0.284 0.263 0.243 0.225 0209 0194 0.180 0167 0.155 0.144 0.134 0.460 0.424 0.391 0361 0.333 0.30 0.592 0.344 0.500 6.5581 0.508 0463 0422 0.386 0352 0322 0.295 0.270 0247 0227 0208 0.191 0.176 0.162 0.149 0.137 0126 6116 0307 0.094 0086 0.237 162 0.388 0215 0195 0178 0.148 0.135 0123 0112 | 0103 0.350 0.317 0.287 0.261 0.527 0.475 0429 0.053 0.076 0069- 0.208 0.187 0168 0.152 0.137 0.124 0.112 0.102 0092 0.625 0.557 0497 0.444 0397 0.356 0319 0286 0257 0231 004 0075 0068 0.061 0.055 0601 0.530 0469 0415 0368 0.326 0.290 0258 0.229 0.204 0.182 0161 0145 0.130 0.116 0.104 0.093 0.08 0.078 00600062 0.055 0.160 0.141 0.125 1110099 0.049 0.044 14 0.577 0.505 0.442 0.388 0340 0.299 0.263 0232 0205 0.181 0057 0.05 0.04 0.074 0.065 0209 0.183 0160 0.140 0.125 0.108 0.095 6.555 0.481 0417 0362 0.315 0.275 0.239 0047 0042 0.123 0107 0.093 0.081 0.071 0.062 0.054 6534 0458 0.394 0339 0292 0252 0215 0.188 0.16 0.141 0.060 0.052 0.045 | 609 | 0.034 0170 0.146 0.125 0.108 0.053 0.0500069 0513 0.436) 0.371 0317 0.270 0231 0.198 0.051 0.044 0.038 0032 0028 0.024 0.02116008 0.005 0.081 0.069 0.059 8.180 0.153 0130 0.11 0.350 10494 0.416 626 6250 0212 BOKY 0070 6060 0.051 0.043 0.017 0.031 0027 0023 0.020 017 014 6164 0138 6116 0.008 0475 0396 0331 0227 0.232 0.194 0016 00146012 0.067 0.073 0.061 0.051 0.043 0017 0.031 0.025 0022 0019 0.009 0456 0.377 0312 0.258 0215 0178 0149 0124 0.104 0.053 0.077 0064 10.044 0017 88310026 0.022 0.015 0015 0.013 0.01E 6242 0.199 0.164 0135 0112 0.095 068 0056 0.046 09.038 0.012 0.026 0022 0015 0015 0015 001 000 0007 0422 0342 0.278 0.226 0.184 0.150 0123 0101 0083 0040 0.013 0.427 0.022 0.015 0015 00120010 0170 0.138 0.112 0.001 0.074 0.060 0009 0406 0.326 0262 0211 00110010608 0.023 0019 0915 0.002 0.066 0053 0.043 0015 0.08 0.90 0310 0.247 0.197 0.158 0126 102 0.074 0.059 0047 0116 0092 anis 0.030 0.004 0.020 0016 0013 0010 09 0.007 000007 066 0.375 0295 0213 0384 0.146 0.053 10042 0.006 0.421 0017 0014 0011 8006005 0.220 0.172 0135 0106 0.04 0.066 0.029 0.003 0.018 0.014 | 001110009 10007 0207 6161 0.125 0.098 0.076 0.060 0.047 0.037 0.008 6.016 0.0120010 0.009 0.054 0042 00110026 020 9005 0014 0.011 0.005 0.063 6048 6837180296022 0.017 0617 004400356026 0020 0015 0012 0.0090007 0.022 0.015 0011 0.008 0.005 0.004 0.003 0.002 0.001 23% 24% 25% 0.806 0.300 0650 0.640 0045 0016 0040 0015 0.012 0.008 0.010 026 E 009 007 0.006 0007 006 6005 0.006 6.005 0.004 6005 6004003 00060005 6004 0.005 0.00 0.002 0.002 0.004 6002 0.005 0.001 0.002 0.002 0002 6002 0.001 0.004 0.001 6003 0001 0000 0000 0.00000000000 004 6001 B0010002 EXHIBIT 148-2 Present Value of an Annuity of S1 in Arrears Iri-11)s) Perinds 4% 2. 3 4 $ 4.452 A 5.242 13 6.002 8 6.733 6463 6210 9 7.435 7.108 812 10 8.141 7722 1300 11 .760 8.306 12 9.385 8.563 8.384 7.943 13 9986 9.394 14 10.563 9899 9295 745 15 11.118 10.380 9712 9.105 16 11.652 10.838 10.306 9.447 17 12.166 11.274 10477 9.763 IN 19 20 21 21 23 24 25 26 27 28 29 30 40 796 996 10% 11% 12% 13% 14% 0.963 0.952 943 0935 926 69176909 0901 0813 0306 0.300 1836 1839 1833 10 1793 175 1736 1713 1690 1668 1.647 1626 1.605 1.585 1.566 1547 1528 1309 1492 1474 1457 1.440 2.775 2.725 2.673 2024 2.597 2.531 7487 2.444 2.402 2.361 2.322 2.283 2246 2.210 2114 2140 2106 2074 2042 2011 1941 1952 3.630 3.546 3.466 338 33312 3340 3.170 3.102 3.037 2074 2914 2555 2.708 2.741 2600 2639 2589 254 244 245 2404 2.362 4.329 4.212 4.100 3993 3990 3.791 3.616 3.605 3517 3:4330 3352 3.274 3.399 3.427 3.058 2.991 2906 2864 2800 2.745 2689 2951 5.076 4.917 4.767 4421 3.889 4486 4355 4.231 4113,998 3.784 3.685 3,589 3498 3.410 3326 3245 3.167 3.092 3020 3.161 1.7063055083416 3327 3.243 5206 5013 5.766 5582 5309 4868 4.712 4.564 4.421 4.28K 4.160 4.039 3.922 3.812 5.971 5747 4487 4344 4.207 4.078 5.535 5305 5146 4.964 4.799 4639 3.954 3417 3.726 3619 3318 3421 3320 4.163 5.759 5537 5.328 5432 4.946 472 4.607 4.451 4503 6315 6247 5905 6345 5809 5.650 5426 5216 5.019 4.833 4659 4.494 7024 6710 6418 4.536 4.656 6.207 938 5687 5.453 5.234 5029 6495 71396305 5.660 5421 5.197 4.9884793 6.492 61945.918 756 7.161 6314 5842 5.583 5342 5.118 4.910 7904 7487 7.103 6.750 6424 6.122 4.802 4M1 442 4265 4108 6.002 5724 468 32295.006 6982 6.6256302 244 7.786 7367 4876 4675 44 4315 4.153 5.093 8559 6.142 3.847 061 7.606 7.191 68116462 5.575 5324 4336 4.357 4.189 5.162 6.265 5,954 498 4730 131378248396974 6004 5.749 5475 5222 4.990 4775 43% 491 4219 4059 1910 9122344 | 8022 7.540 120 6.729 6373 6047 4604419 4240 4080 3928 12.659 11.690 10.828 10.059 9372 87568.201 7.702 7.250 6.840 6467 6.128 5.815 5.534 5.273 50134312 4635 440 4203 4007942 950 365 78397366 | 6.958 6550 6.196 5877 5.584 5316 5070 4843 13.134 12.08S 158 10.336 9604 6.623 8.514 7963 7.469 7.025 6.259 5.929 5.628 5.353 5101 4870 4657 4460 4279 4110 3.954 9.129 13.590 12.462 11.470 185941 5.384 5.127 4391 4875 4476 4292 4121 3.963 6.687 6.312 5.973 5.665 649 075 7.562 7.102 14.029 12.821 11.764 10 83610017 9292 4800 4415 4302 5.696 5.410 15149 | 4909 400 1970 7.170 6.743 6.359 6011 87728.176 7645 14451 13.163 12.042] 11.061 10201 9442 4.925 5432 5.167 4703 4.499 41573976 4311 888.266 7.718 7.230 6.792 6399 6.044 5.723 14.857 13489 12.303 11.272 10.371 9380 8985 348 7.754 7.283 6835 6434 6073 5.746 5451 5.182 4.057 4713 | 4507 4315 414) 3.981 15.247 13.799 12.550 11 469 16529 9.207 6464 6.097 5.766 5.467 5.195 4.946 4721 4514 4.323 4147 3965 29.0771 8422 7.843 7.330 6873 15.622 14.094 12 783 11.454 10.475 9823 6.906 6491 6.11K 5.7K3 5480 3.206 4956 472 4520 432 4351 3.908 15.983 14.375 13.003 31826 10810 9929 92161 8488 2896 7372 4964 4754 45244332 9237 8.548 7.943 409 6.935 6.514 6.136 5.798 5.492 5215 16.330 14.643 13.211 11.987 1935 0.027 4900 4739 5810 5.500 $223 432 6.534 6.152 8.602 7984 7.441 6961 4531 16.663 14.898 13.406 12.137 11.004 18.116 9.307 7.470 6.983 6.551 6.366 8022 5820 5.510 5.229 4915 474 16.984 15.141 13.391 12.25 11.158 10.108 9370 650 7496 7.003 6.566 6.177 5829 5517 5235 4979 4746 17.292 15.372 13.765 12.409 11.258 10.274 9427 694 8.055 6642 6.233 5871 5548 5258 4.997 476 19.793 17.159 15.046 33312 11.925 8.757 9779 8951 8.244 7.634 7.105 19% 20% 0895 0985 0.877 0.870 0.862 0.855 0.347 0.840 0813 21% 27% 826 A 20% 24% 2816 4.339 4102 4054 3.92) 3299 3682 33 4.486 43274177 | 415 1.9023776 3.656 3351 3,725 4.611 4410 427 4127 3985 4.715 4.533 4362 4200 4053 8356 3917 3.780 3.0462 3824 4001 1859 4033 18 5.6685405 4.154 1.900 4335 4157 3992 4337 4159 1004 454 4339 4150 3.995 166 1999 4544 4347