Exhibit 19B.1 Present Value of $1* Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.728 0.714 0.700 0.686 0.673 0.660 0.647 0.634 0.622 0.610 0.598 0.586 0.574 0.563 0.552 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.534 0.513 0.494 0.475 0.456 0.439 0.422 0.406 0.390 0.375 0.361 0.347 0.333 0.321 0.308 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% O 40% 0.943 0.926 0.857 0.826 0.909 0.893 0.877 0.890 0.797 0.769 0.840 0.794 0.751 0.712 0.675 0.792 0.735 0.683 0.636 0.592 0.747 0.681 0.621 0.567 0.519 0.705 0.636 0.564 0.507 0.456 0.665 0.583 0.513 0.452 0.400 0.540 0.467 0.404 0.351 0.500 0.424 0.361 0.308 0.627 0.592 0.527 0.469 0.368 0.442 0.340 0.417 0.315 0.862 0.847 0.833 0.820 0.806 0.794 0.781 0.769 0.758 0.714 0.743 0.718 0.694 0.672 0.650 0.630 0.610 0.592 0.574 0.510 0.641 0.609 0.579 0.551 0.524 0.500 0.477 0.455 0.435 0.364 0.552 0.516 0.482 0.451 0.423 0.397 0.373 0.350 0.329 0.260 0.476 0.437 0.402 0.370 0.341 0.315 0.291 0.269 0.250 0.186 0.410 0.370 0.335 0.303 0.275 0.250 0.227 0.207 0.189 0.133 0.354 0.314 0.279 0.249 0.222 0.198 0.178 0.159 0.143 0.095 0.305 0.266 0.233 0.204 0.179 0.157 0.139 0.123 0.108 0.068 0.263 0.225 0.194 0.167 0.144 0.125 0.108 0.094 0.082 0.048 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.137 0.116 0.099 0.085 0.073 0.062 0.035 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.112 0.094 0.079 0.066 0.056 0.046 0.025 0.497 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 0.018 0.290 0.229 0.182 0.145 0.116 0.093 0.075 0.061 0.050 0.040 0.033 0.027 0.013 0.263 0.205 0.160 0.125 0.099 0.078 0.062 0.049 0.039 0.032 0.025 0.021 0.009 0.239 0.183 0.140 0.108 0.084 0.065 0.051 0.040 0.031 0.025 0.020 0.016 0.006 0.394 0.292 0.218 0.163 0.123 0.093 0.071 0.054 0.042 0.032 0.025 0.019 0.015 0.012 0.005 0.146 0.108 0.080 0.060 0.045 0.034 0.026 0.020 0.015 0.012 0.009 0.003 0.051 0.038 0.028 0.021 0.016 0.012 0.009 0.007 0.002 0.043 0.031 0.023 0.017 0.012 0.009 0.007 0.005 0.002 0.037 0.026 0.019 0.014 0.010 0.007 0.005 0.004 0.001 0.031 0.022 0.015 0.011 0.008 0.006 0.004 0.003 0.001 0.026 0.018 0.013 0.009 0.006 0.004 0.003 0.002 0.001 0.022 0.015 0.010 0.007 0.005 0.003 0.002 0.002 0.000 0.019 0.013 0.008 0.006 0.004 0.003 0.002 0.001 0.000 0.016 0.010 0.007 0.005 0.003 0.002 0.001 0.001 0.000 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 0.076 0.047 0.029 0.018 0.011 0.007 0.005 0.003 0.002 0.001 0.001 0.001 0.000 0.069 0.042 0.026 0.016 0.010 0.006 0.004 0.002 0.002 0.001 0.001 0.000 0.000 0.185 0.107 0.063 0.037 0.022 0.014 0.008 0.005 0.003 0.002 0.001 0.001 0.000 0.000 0.000 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.003 0.002 0.001 0.001 0.000 0.000 0.000 0.331 0.312 0.371 0.270 0.198 0.350 0.250 0.180 0.130 0.232 0.164 0.215 0.149 0.135 0.123 0.112 0.074 0.049 0.033 0.102 0.066 0.043 0.028 0.092 0.059 0.038 0.024 0.095 0.069 0.116 0.083 0.060 0.104 0.073 0.051 0.093 0.064 0.044 0.083 0.056 0.038 0.294 0.199 0.278 0.184 0.262 0.170 0.247 0.158 0.233 0.146 0.135 0.220 0.207 0.125 0.196 0.116 Exhibit 19B.2 Present Value of an Annuity of $1 in Arrears* Periods 2% 1 2 3 4 5 6 7 8 9 10 11 12 13 MANDARDNE 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 12% 20% 22% 28% 30% 32% 40% 0.980 0.962 0.926 0.909 0.893 0.943 1.833 1.942 1.866 2.884 2.775 2.673 1.783 2.577 3.808 3.630 3.465 3.312 1.589 1.849 0.877 0.862 0.847 0.833 0.820 0.806 0.794 0.781 0.769 0.758 0.714 1.736 1.690 1.647 1.605 1.566 1.528 1.492 1.457 1.424 1.392 1.361 1.331 1.224 2.487 2.402 2.322 2.246 2.174 2.106 2.042 1.981 1.923 1.868 1.816 1.766 3.170 3.037 2.914 2.798 2.690 2.589 2.494 2.404 2.320 2.241 2.166 2.096 4.713 4.452 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 2.864 2.745 2.635 2.532 2.436 2.345 2.035 5.601 5.242 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 3.167 3.020 2.885 2.759 2.643 2.534 2.168 6.472 6.002 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 3.416 3.242 3.083 2.937 2.802 2.677 2.263 7.325 6.733 6.210 5.747 5.335 4.968 4.639 4.344 3.078 3.837 3.619 3.421 3.241 3.076 2.925 2.786 2.331 8.162 7.435 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 3.786 3.566 3.366 3.184 3.019 2.868 2.379 8.983 8.111 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 3.923 3.682 3.465 3.269 3.092 2.930 2.414 9.787 8.760 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 4.035 3.776 3.543 3.335 3.147 2.978 2.438 10.575 9.385 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 4.127 3.851 3.606 3.387 3.190 3.013 2.456 11.348 9.986 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 4.203 3.912 3.656 3.427 3.223 3.040 2.469 12.106 10.563 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 4.265 3.962 3.695 3.459 3.249 3.061 2.478 12.849 11.118 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 4.315 4.001 3.726 3.483 3.268 3.076 2.484 13.578 11.652 10.106 8.851 7.824 6.974 6.265 5.668 5.162 4.730 4.357 4.033 3.751 3.503 3.283 3.088 2.489 14.292 12.166 10.477 9.122 8.022 7.120 6.373 5.749 5.222 4.775 4.391 4.059 3.771 3.518 3.295 3.097 2.492 14.992 12.659 10.828 9.372 8.201 7.250 6.467 5.818 5.273 4.812 4.419 4.080 3.786 3.529 3.304 3.104 2.494 15.678 11.158 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 11.470 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 2.497 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 2.498 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 2.498 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 2.499 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 15.622 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 15.983 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 3.123 2.500 20.707 16.330 13.211 10.935 9.237 7.943 6.935 6.136 5.492 4.964 4.524 4.154 3.839 3.567 3.331 3.123 2.500 21.281 16.663 13.406 11.051 9.307 7.984 6.961 6.152 5.502 4.970 4.528 4.157 3.840 3.568 3.331 3.124 2.500 21.844 16.984 13.591 11.158 9.370 8.022 6.983 6.166 5.510 4.975 4.531 4.159 3.841 3.569 3.332 3.124 2.500 22.396 17.292 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 4.534 4.160 3.842 3.569 2.500 13.134 16.351 13.590 17.011 17.658 18.292 18.914 19.523 20.121 3.332 3.124 4% 6% 8% 10% 14% 16% 18% 24% 26% Basic Concepts Sato Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is $2,293,200. The equipment is expected to last five years and will have no salvage value. The expected cash flows associated with the project are as follows: Year Cash Revenues Cash Expenses 1 2 $2,981,160 2,981,160 2,981,160 2,981,160 2,981,160 The present value tables provided in Exhibit 19B.1 and Exhibit 19B.2 must be used to solve the following problems. 3 4 5 Required: $2,293,200 2,293,200 2. Compute the project's accounting rate of return. Enter your answer as a whole percentage value (for example, 16% should be entered as "16" in the answer box). 10 % 010 2,293,200 2,293,200 2,293,200 1. Compute the project's payback period. If required, round your answer to two decimal places. 3.33 years Between 3. Compute the project's net present value, assuming a required rate of return of 10 percent. When required, round your answer to the nearest dollar. $ 314,856 4. Compute the project's internal rate of return. Enter your answers as whole percentage values (for example, 16% should be entered as "16" in the answer box). % and %