EXHIBIT 12B-1 Present Value of $1; **(1+ r) 1 Periods 4% 5% 6% % 8% 9% 10% 1% 2% 3% 4% 5% 6% 7% 18% 19% 20% 21% 22% 23% 24% 25% 1 0962 0952 0943 0935 0926 097 0909 0.901 0893 0.885 087 0870 0862 0855 0847 0840 0833 0826 0820 083 0806 0800 | 2 0925 0.907 0.890 0.873 0857 0842 0826 0.82 0.797 0.783 0769 0756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0661 0.650 0640 3 0889 0.864 0840 0.816 0794 072 0751 0731 0712 0693 0675 0658 0641 0.624 0609 0593 0579 0564 0551 0537 0524 0512 14 0855 0823 0792 0763 0735 0708 0683 0659 0636 0613 0592 0572 0552 0534 0516 0499 0482 0467 0451 0437 0423 0410 5 0822 0784 0747 0713 0681 0.650 0621 0.593 0567 0.543 0519 0497 0476 0.456 0437 0419 0.402 0386 0.370 0355 0.341 0.328 6 0790 0.746 0705 0666 0630 0596 0564 0535 0507 0480 0456 0432 0410 0.390 0370 0352 0335 0319 0303 0289 0275 0.262 7 0760 0.71 0665 0623 0583 0.547 053 0482 0452 0425 0400 0.376 0354 0333 0314 0296 0279 0263 0249 0235 0.222 0210 0731 0677 0627 0582 0540 0.502 0467 0434 0404 0.376 0351 0327 0.305 0285 0266 0249 0233 0218 0204 0191 0179 0168 19 0703 0645 0592 0544 0500 0460 0424 0391 0361 0.333 0308 0284 0263 0243 0225 0209 0194 0180 0167 0155 0144 0134 10 0.676 0.614 0.558 0508 0.463 0.422 0.386 0.352 0322 0.295 0270 0.247 0227 0.208 0191 076 0162 0.149 0137 0.126 0.116 0107 1 0650 0.585 0527 0475 0429 0388 0350 0.37 0287 0.261 0237 0215 0195 0178 0162 0.148 0135 0123 0112 0103 0094 0086 2 0625 0.557 0497 0444 0397 0356 0319 0286 0257 0.231 0208 0187 0168 0152 0.137 0124 012 0102 0.092 0083 0.076 0069 3 0601 0.530 0469 0.45 0368 0326 0290 0258 0229 0204 0182 0163 0145 0130 016 0104 0093 0084 0075 0068 0061 0055 14 057 0505 0442 0388 0340 0299 0263 0232 0205 0181 0160 0141 0125 0111 0099 0088 0078 0069 0062 0055 0049 0044 5 0.555 0.481 0.47 0.362 0.315 0.275 0.239 0.209 0.183 0160 0.140 0123 0108 0.095 0.084 0074 0.065 0.057 0.051 0.045 0.040 0.035 16 0534 0458 0394 0339 0292 0252 0218 0188 0163 0141 0123 0107 0093 0081 0071 0062 0054 0047 0042 0036 0032 0028 7 0513 0436 0371 0.37 0270 0.231 0198 0170 0146 0125 0108 0.093 0080 0.069 0060 0052 0045 0039 0034 0030 0.026 0.023 8 0494 0416 0350 0.296 0250 0.212 0180 0153 0130 011 0095 0081 0069 0.059 0051 0044 0038 0032 0.028 0024 0021 0018 | 19 0475 0.396 0331 0277 0232 0194 0164 0138 016 0.098 0083 0070 0060 0051 0043 0037 0031 0027 0023 0020 007 0014 | 20 0.456 0.37 0.312 0.258 0.215 0.178 0.149 0124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0016 0.014 0.012 21 0439 0.359 0294 0242 0199 0164 0135 012 0093 007 0064 0.053 0044 0037 0031 0026 0022 0018 0.015 0013 001 0009 22 0422 0.342 0278 0226 0184 0150 0123 0101 0083 0.068 0.056 0.046 0038 0.032 0026 0022 0.018 0015 003 0011 0.009 0.007 23 0406 0.326 0262 021 0170 0138 012 0.091 0074 0060 0049 0.040 0033 0027 0022 0018 005 0012 0010 0.009 0.007 0006 24 0390 0.310 0247 0197 0158 0126 0102 0.082 0066 0.053 0043 0.035 0028 0.023 0019 005 0.03 0010 0008 0007 0006 0.005 25 0375 0.295 0.233 0.184 0.146 0.16 0.092 0.074 0.059 0.047 0.038 0.030 0024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 26 0361 0281 0220 072 0135 0106 0084 0066 0053 0042 0033 0026 0021 007 0014 001 0009 0007 0006 0005 0004 0003 27 0347 0.268 0207 0161 0125 0.098 0.076 0.060 0047 0.037 0029 0023 0018 0.014 001 0009 0.007 0006 0.005 0004 0003 0002 28 0333 0.255 0196 0150 016 0.090 0.069 0.054 0042 0.033 0.026 0.020 0016 0.01 0.010 0008 0006 0.005 0.004 0003 0.002 0002 29 0321 0.243 0185 0.141 0107 0.082 0063 0.048 0037 0.029 0022 007 0014 0.01 0008 0006 0005 0004 0003 0002 0002 0002 | 30 0308 0.231 0.174 031 0.099 0.075 0.057 0.044 0.033 0026 0.020 0.05 0012 0.009 0.007 0005 0.004 0003 0.003 0002 0.002 0001 | 40 0208 042 0097 0067 0046 0032 0022 005 001 0008 0005 0004 0003 0002 0001 0001 0001 0000 0000 0000 0000 0000 EXHIBIT 128-2 Present Value of an Annuity of $1 in Arrears: 11 - Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0943 0935 0926 0917 0909 0901 0893 0885 0 877 0870 0852 0855 0.847 0840 08330826 0820 0813 0806 0800 2 1.886 1859 1833 1808 1.783 1.759 1.736 1713 1.690 1668 1.647 1626 1605 1.585 1566 1547 1.528 1509 1.492 1.474 1457 1.440 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 2361 2.322 2283 2.246 2210 2.174 2.140 2.106 2.074 2.042 2011 1.981 1952 3630 3.546 3.465 3387 3312 3.240 3170 3102 3037 2.974 2 914 2855 2798 2743 2690 2.639 2 589 2540 2494 2448 2404 2362 4.452 4329 4212 4100 3.993 3.890 3791 3696 3605 3517 3.433 3352 3.274 3199 3127 3058 2.991 2926 2864 2803 2745 2689 5.2425.076 4.917 4.767 4.623 4.486 1.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2951 7 6.002 5786 55825389 5.206 5.033 4868 4712 4.564 4.423 4288 4.160 4.039 3922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 6733 646 6210 5971 5747 5535 5335 5 146 4968 47994639 4487 4344 4 207 4078 3.954 3837 3726 3619 3518 3421 3329 9 7435 7108 6.802 6.515 6.247 5.995 5759 5.537 5.328 5.132 4946 4772 4607 4.451 4.303 4163 4.031 3.905 3.786 3.673 3.566 3463 10 8.111 7.722 7360 7.024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 1.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 11 8.760 8.3067887 749971396805 6.495 6.207 5.938 5687 5.453 5 234 5.029 4836 4.656 4.486 4327 4.177 4.035 3.902 3.776 3.656 129 385 8863 8384 7943 7536 7161 6814 6 492 6194 5918 5660 5421 5197 4988 4793 4611 4439 4278 4127 3985 3851 3725 13 9 .986 9.394 8.853 8.358 7.904 7.487 7103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4715 4.533 4.362 4203 4.053 3.912 3.780 14 10.563 9.899 9.295 8.745 8.244 7786 7367 6.982 6.628 6.302 6.002 5724 5.468 5.229 5.008 4.802 4.611 4.432 4265 4.108 3.962 3.824 15 11118 10.380 9.712 9108 8.559 8061 7606 7191 6.811 6462 6142 58475.575 5324 5.092 4.876 4675 4.489 4315 4.153 4001 3.859 16 11652 10838 10106 9.447 8851 83137824 7379 6974 6604 6 265 5954 5668 5405 5162 4938 4730 4536 4352 4.189 4033 3887 17 12.166 11274 10.477 9763 9.122 8.544 8.022 75497120 6729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4391 4.219 4059 3.910 18 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812 4.608 4.419 4.243 4.080 3.928 19 13 134 12.085 11.158 10.336 9.604 8.950 8.365 7839 7366 6938 6.550 6198 5.877 5584 5316 5.070 4843 4635 4442 4263 4097 3942 2013 590 12 462 11.47010594 9818 9129 8514 7963 7469 7025 6623 6259 5929 5628 5353 5101 4870 4657 4460 429 4110 3954 21 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7562 7102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 22 14.451 13.163 12.042 11.061 10.201 9.442 8.772 8.176 7645 7170 6.743 6.359 6.011 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 23 14.857 13.489 12 303 11 272 10.371 9580 883 8266 7718 7230 6792 6.399 6 044 57235432 5167 4925 4.703 4499 4311 4137 3.976 24 15 247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7784 7.283 6.835 6.434 6.073 5.746 5.451 5.182 4937 4.713 4507 4.316 4143 3.981 25 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7843 7.330 6.873 6.464 6.097 5.766 5.467 5.1954.948 4.721 4.514 4.323 4147 3.985 26 15983 14.375 13.003 11.826 10.810 9.929 9161 8.488 7896 7.372 6.906 6.491 6.118 5783 5.480 5.206 4956 4728 4520 4.328 4.151 3988 2716330 14643 13 211 11987 10935 10027 9237 8548 7943 7409 6935 6514 6136 5798 5 492 5 215 4964 4734 4524 433241543990 28 16.663 14.898 13.406 12.137 11.051 10.115 9307 8.602 7984 7.441 6.961 6534 6.152 5.810 5.502 5.223 4.970 4.7394528 4.335 4157 3.992 29 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4.1593994 30 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7.496 7003 6.566 6.177 5.829 5.517 5.235 4.979 4.746 4534 4.339 4.160 3.995 40 19793 17159 15046 1133211925 10757 9779 8951 8244 7634 7105 6642 6233 58715548 5258 4997 4760 4544 4347 4166 3999 The securities were all sold at the end of three years so that Linda would have funds available to open a new business venture. The broker stated that the investments had earned more than a 13% return, and he gave Linda the following computations to support his statement: $ 105,000 Common stock: Gain on sale ($255,000 - $150,000) Preferred stock: Dividends paid (8% * $50,000 x 3 years) Loss on sale ($18,000 - $50,000) Bonds: Interest paid ($2,000 x 3 years) Gain on sale ($80,000 - $65,000) Net gain on all investments 12,000 (32,000) 6,000 15,000 $ 106,000 $106,000 : 3 years $265,000 = 13.30% Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: 1-a. Using a 13% discount rate, compute the net present value of each of the three investments. 1-b. On which investment(s) did Linda earn a 13% rate of return? 2. Considering all three investments together, did Linda earn a 13% rate of return? 3. Linda wants to use the $353,000 proceeds ($255,000 + $18,000 + $80,000 = $353,000) from sale of the securities to open a retail store under a 8-year franchise contract. What minimum annual net cash Inflow must the store generate for Linda to earn a 12% return over the 8-year period? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2 Req3 Using a 13% discount rate, compute the net present value of each of the three investments. (Enter negative amounts with a minus sign. Round computations to the nearest whole dollar.) Net Present Value Common stock Preferred stock Bonds