For discount factors use Exhibit 128-1 and Exhibit 128-2. Talmage Inc. has just completed development of a new printer. The new product is expected to produce annual revenues of $2,700,000. Producing the printer requires an Investment in new equipment costing $2,880,000. The printer has a projected life cycle of 5 years. After 5 years, the equipment can be sold for $360,000. Working capital is also expected to decrease by $360,000, which Talmage will recover by the end of the new product's life cycle. Annual cash operating expenses are estimated at $1,620,000. The required rate of return is 8%. Required: 1. Prepare a schedule of the projected annual cash flows. Year Cash Flow Item 0 Total 1-4 Total 5 III Total Total 2. Calculate the NPV using only discount factors from Exhibit 120.1 3. Calculate the NPV using discount factors from both Exhibits 120.1 and 120.2 34 Exhibit 128.1 Present Value of a Single Amount 1%. 2. 5%. 6% 79 8% 94 10% 129 14% 16% 1896 2096 25% 30% 1 099010 0.98039 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.89286 0.87719 0.86207 0.84746 0.83333 0.80000 0.76923 2 0.00030 0.96117 0.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.79719 0.76947 0.74316 0.71818 069444 0.64000 0.59172 30.97059 094232 0.91514 0.88900 0.86384 0.83962 81630 0.79383 0.77218 0.75131 0.71178 0.67407 0.64066 0.60863 0 57870 0.51 200 045517 4 0.96098 0.92385 0.58849 0.85450 0.82270 0.79209 0.76290 0.73503 0.70843 0.68301 0.63552 0.59208 0.55229 0.51579 0.48225 0.40960 0.35013 5 0.95147 0.90573 0.56261 0.82193 0.78353 0.74726 071299 0.68058 0.64993 0.62092 0.56743 0.51937 0.47611 0.43711 0.40188 0.32768 0.26933 6 0.94205 0.88797 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.50663 0.45559 0.41044 0.37043 0.33490 0.26214 0.20718 7 0.93272 0.87056 0.81309 0.75992 0.71068 0.66506 062275 0.58349 0.54703 0.51316 0.45235 0,39964 0.35383 0.31393 0.27908 0.20972 0.15937 8 0.92348 085349 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.40388 0.35056 0.30503 0.26604 0.23257 0.16777 0.12259 9 0.91434 083676 0.76642 0.70259 0.64461 0.59190 0.54393 0,50025 0.46043 0.42410 0,36061 0.30751 0.26295 0.22546 0.19381 0.13422 0.09430 10 0.00529 082035 0.74409 0.67556 0.61391 0.55839 0.50835 0.46319 0.42241 0.38554 0.32197 0.26974 0.22668 0.19106 0.16151 0.10737 0.07254 11 0.89632 0.80426 0.72242 0.64958 0.58468 0.52679 0.47509 0.42888 0.38753 0.35049 0.28748 0.23662 0.19542 0.16192 0.13459 0.08590 0.05580 12 0.88745 0.78849 0.70138 0.62460 0.55684 0.49697 0.44401 0.19711 0.3555) 0.1186) 0.25668 0.20756 0.16846 0.13722 0.11216 0.06872 0.04292 13 0.87866 0.77303 0.68095 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.22917 0.18207 0.14521 0.11629 0.09346 0.05498 0.03302 14 0.86996 0.75788 0.66112 0.57748 O SOSOY 0.44230 0.38782 0.34046 0.29925 0.26333 0.20462 0.15971 0.12520 0.09855 0.07789 0.04398 0.02540 15 0.86135 0.74301 0.64186 0.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.18270 0.14010 0,10793 0.08352 0.06491 0.03518 0.01954 16 0.85282 0.72845 0.62317 0.53391 045811 0.19365 0.33873 0.29189 0.25187 0.21761 0.16312 0.12289 0.09304 0.07078 0.05409 0.02815 0.01503 17 0.84433 0.71416 0.60502 0.51337 0.43630 0.37136 0.31657 0.27027 0.23107 0.19784 0.14564 0.10780 0.08021 998 0.04507 0.02252 0.01156 18 0.83602 0.70016 0.58739 0.49363 0.41552 0.35034 0.29586 0.25025 0.21199 0.17986 0.13004 0.09456 0.06914 0.05083 0.03756 0.01801 0.00889 19 0.82774 0.68641 0.57029 047464 0.39573 0.33051 0.27651 0.23171 0.19449 0.16351 0.11611 0.08295 0,05139 0,04308 0.03130 0.01441 0.00684 20 0.81954 0.67297 0.55368 0.45639 0.37689 0.31180 0.25842 0.21455 0.17843 0.14864 0.10367 0.07276 0.05139 0.03651 0,02608 0.01153 0.00526 21 0.81143 0.65978 0.53755 0.43881 0.35894 0.29416 0.24151 0.19866 0.16370 0.13513 0.00256 0.06383 004430 0.03094 0.02174 0.00922 0.00405 22 030340 064684 052189 0.42196 0.34185 0.27751 0.22571 0.18394 0.15018 0.12285 0.08264 0.05509 0.01819 0.02622 0.01811 0.00738 0.00311 23 0.79544 0.63416 0.50669 0.40573 0.12557 0.26180 0.21095 017032 0.13778 0.11165 007379 0.04911 0.01292 0.02222 0.01500 0.00590 0.00239 24 0.78757 0.62172 0.49193 0.39012 0.11007 0.24608 0.19715 0.15770 0.12640 0.10151 0.06588 0.04308 0.02518 001883 0.01258 0.00472 0.00114 25 0.77977 0.60053 0.47761 0.37512 0.29530 0.23300 0.18425 0.14602 0.11597 0.09230 05182 0.01779 0.02447 0.01596 0.01048 0.00378 0.00142 26 0.77205 0 59758 0.46369 0.36000 0.20124 021931 0.17220 0.13520 0.10619 0.08391 0.05252 001315 0.02109 0.01152 0.00874 0.00302 0.00109 27 0.76440 0.58586 0.45019 0.34682 0.26785 0.20717 0.16091 0.12510 0.00761 0.07628 0.0460 0.02903 0.01818 0.01146 0.00728 0.00242 0.00054 28 0.75684 0.57437 0.43708 0.31348 025509 0.19563 0.15040 0.11591 0.08955 0.06914 0.04187 0.02551 0.01567 0.00971 0.00607 000191 0.00065 29 0.74014 0.56311 042435 0.32065 024205 0.18456 0.14056 0.10713 0.08215 0.06104 001738 0.02227 0.01151 0.00123 0.00506 0.00155 0.00050 10 0.74192 0.55207 0.41199 0.30832 023138 0.17411 0.11117 0.0098 0.07537 0.05751 0.03338 0.0196), 0.01165 0.00697 0.00421 0.00124 0.00038 4% 19. 2 5% 6% 7% #9 9' 10% 129 145. 16% 18% 20%. 25 30. 1 0.99010 0.98039 0.97087 0.96154 0.95238 0.94340 0.97458 0.92593 0.91743 0.90900 0.89286 0.87719 0.86207 0.84746 0.81331 0.80000 0.76923 2 1.97040 1.94156 1.91347 1.88600 1.85941 1.81339 1.80802 1.78326 1.759111.73554 1.69005 1.64666 1.60523 1.56564 1.52778 1.44000 1.36095 2.94099 2.88388 2.82861 2.77500 2.72325 2.67301 2.62432 2.57710 2.51129248685 2.40183 2.32163 224589 217427 2.10648 1.95200 1.51611 4 3.90197 3.80773 1.71710 1.62900 1.54595 3.46511 3.38721 131213 3279723.16087 3.03735291371 2.79818 2.69006 2.58873 236160 2.16624 5 48534) 471346 457971 445182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.60478 3.43308 3.27429 3.12717 2.99061 2.68928 243557 5.79548 560143 5.41719 5.24214 5.07569 491732 4.76654 4.62288 4.48592 4.35526 4.11141 3.88867 3.68474 3.49760 3.32551 2.95142 264275 7 6.72819 6.47199 6.23028 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.56376 4.28830 403857 3.81153 3.60459 3.16114 280211 8 7.65168 7.32548 701069 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33491 496764 4.63886 4.34359 4.07757 3.83716 332891 2.92470 9 8.56602 8.16224 7.78611 7.43533 7.10782 6,80169 6.51523 6.24689 5.99525 5.75902 5.32825 4.94617 4.60654 4.30302 4.03097 3.46313 3.01900 10 9:47130 8.98250 8.53020 8.11090 7.72173 7.36099 7.02258 6.71008 6.417666.14457 5.65022 5.21612 4.83323 449409 4.19247 3.57050 3.09154 11 10.36763 9.78655 9.25262 8.76048 8.30641 7.88687 7.49867 7.13896 6.805196,49506 5.93770 5.45273 5.02864 4.65601 4.32706 3.65640 1.14734 12 11.25508 10.57534 0.95400 0.38507 8.86325 8.18384 7.04269 7.53608 7.160736.81369 6.19437 5.66029 5.19711 479322 4.43922 3.72512 3.19026 13 12.13374 11.34837 10.63496 9.98565 9.39357 8.85268 8 35765 7.90178 748690 7.10336 6.42355 5.84236 5.34233 490951 4.53268 3.78010 3.22328 14 13.00170 12.10625 11.29607 10.56312 9.89864 9.29498 3.74547 824424 7.78615 7.36660 662817 6.00207 5.46753 5.00806 4.61057 3.82408 3.24867 15 11 86505 12.84926 11.03794 11.11819 10.37966 9.71225 9.10791 8.55048 8.06060 7.60608 6.81086 6.14217 5.57546 5.09158 4.67547 3.85926 1.26821 16 14.71787 13.57771 12.56110 11.65230 10.83777 10.105909.44665 8.85117 8.312567.82371 6.97399 6.26506 5.668 SO 5.16235 4.72956 3.88741 3.28124 17 15.56225 14.29187 1116612 12.16567 11.27407 10.47726 9.76122 9.12164 8.54363 8.02155 7.11963 6.37286 5.74870 5.22233 4.77463 3.9093 1.29480 18 16 39827 14.99203 12.75251 1265930 11.68959 1082760 10.05009 9.37189 8.755638.20141 7 24967 6.46742 5,81785 5 27316 4.81219 192794 330369 19 1722601 156784614.12180 11.12194 1208532 11.15812 10.31560 9.60160 8.95011 8.36492 736578 6.55037 5.87746 531624 4.84350 3.94235 131053 20 18.04555 16,35143 14.87747 1.500331246221 11.46992 10.59401 9.81815 0.12855 8.51356 746944 6.62313 5.92884 5.35275 4.86958 3.95388 3.31570 21 11.5608 17.0112115.41502 14.02916 12.82115 11 76408 10.83553 10.01680 9.29224 8.64660 7.56200 6.65696 5.97314 5.38368 4.89132 796111 101984 22 19.66038 17.65805 15.93692 14.451121316300 12041581106124 10.20074 9.442418.77154 7.64465 6.74294 601133 540990 4.90943 197040 3.32296 23 20.4558218.29220 16.44361148568411.48857 12.30338 11.2721910.171069.58021 8.88122 7.71841 6.79206 6,04425 5.43212 492453 3.97639 3.12515 24 21.2411018.9119116,9355415 24696 12.79864 1255036 1146011 10.52876 9.70661 8.98474 778432 683514 6.0726 5.45095 4.92710 3.98111 112719 25 22.02316 19.52346 17.41315 15.62208 14.09394 12,7833611.653531067478 0,82258 9.07704 7.84314 687293 609709 546691 4.94759 391480 312861 26 2279520 20.12104 17.07684 15.98277 14. 12510110011711.82578 10 80098 0.92897 9.16095 7.89566 6.90608 6.11818 5.48041 495612 1.98791 112970 22 23.55961 20.70690 18.12703 16.329501464303 13.21053 11.956711091516 10.026589.217227.94255 693515 613636 5.49189496360 2.090333.33054 28 2431644 21.25127 16.76411 16.66306 14.8981) 13.40616 12.13711 11.05108 10.11613 9.30657 7.98442 6.96066 6.15204 550160 4.96967 3.99226 130118 29 25,06579 21.84438 19.1884 16,98371 15.14107 13.59072 12.27767 11.15841 10.19828 9.36961 802181 6.98304 616555 S 50963 4.97472 3.99381 333168 30 25.80771 2239646 19.60044 17.29203 15.37245 13.76483 12.40904 11.25778 10.273659.42691 8.05518 7.00266 6:17720 5.51681 4.97894 3.99505 73206 *1/ 01/1.11