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follows Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Requrd rate of return B14 Model $300,000 10

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follows Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Requrd rate of return B14 Model $300,000 10 $60,000 $50 000 Straight line 14% F54 Model $250,000 10 $33,000 $9.000 Straight-line 12% What is the net present value of the B14 Model? 16% Present Value of $1 Periods 6 7 8 9 10 8% 0630 0 583 0.540 0.500 0463 1096 0564 0513 0467 0 424 0.386 12% 0.507 0.452 0.404 0.361 0.322 14% 0.456 0.400 0 351 0.308 0.270 0.410 0354 0 305 0.263 0.227 Present Value of Annuity of 51 Periods 8% 6 4623 7 5.206 B 5.747 9 6 247 10 6.710 10% 4355 4868 5 335 5.759 6.145 1296 4.111 4.564 4 968 5.328 5.650 1496 3 889 4.288 4.639 4.946 6.216 16% 3.685 4.039 4.344 4.607 4833

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