Future Value and Present Value Tables Table Future Value of $1.00(1 + r)n Period 4% 6% 8% 10% 12% 14% 20% 1.040 1.060 1.080 1.100 1.120 1.140 1.200 2 1.082 1.124 1.166 1.210 254 1.300 1.440 3 1.125 1.191 1.260 1.331 1.405 1.482 1.728 4 1.170 1.263 1.361 1.464 1.574 1.689 2.074 5 1.217 1.338 1.469 1.611 1.762 1.925 2.488 6 1.265 1.419 1.58/ 1.772 1.9/4 2.195 2.980 7 1.316 1.504 1.714 1.949 2.211 2.502 3.583 S 1.369 1.594 1.851 2.144 2.476 2.853 4.300 9 1.423 1.690 1.999 2.359 2.773 3.252 5.160 10 1.480 1.791 2.159 2.594 3.106 3.707 6.192 11 .540 1.898 2.332 2.853 3.479 1,226 7.430 12 1.601 2.012 2.518 3.139 3.896 4.818 8.916 13 1.665 2.133 2.720 3.452 1.364 5.492 10.699 14 1,732 2.261 2.937 3.798 4.887 6.261 12.839 15 1.801 2.397 3.172 4.177 5.474 7.138 15.407 20 2.191 3.207 4.661 6.728 9.646 13.743 $8.338 30 3.243 5.744 10.063 17.450 29.960 50.950 237.380 10 4.801 10.286 21.725 45.260 93.051 188.880 1,469.800 Table II Future Value of a Series of $1.00 Cash Flows (Ordinary Annuity)- (1 + r)" - 1 Period 4% 6% 8% 10% 12% 14% 20% 1.00 1.00 1.000 1.000 1.000 .00 1.000 2.04 2.060 2.080 2.100 2.120 2.140 2.220 3.12 3.18 3.246 3.310 3.374 3.440 3.640 4.24 4.375 4.506 4.641 4.779 4.921 5.36 .416 5.637 5.867 6.105 5.35 6.610 7.442 6.63. 6.975 7.336 7.716 3.11 8.536 9.930 7.898 8.394 8.923 9.487 10.089 10.730 12.916 9.214 9.098 10.637 11.436 12.300 13.233 16.499 10.583 11.491 12.488 13.580 14.776 16.085 20.799 10 12.006 13.18 14.487 15.938 17.549 19.337 25.959 11 13.486 14.972 16.64 18.531 20.65 23.04 32.150 15.026 16.870 18.977 21.385 24.133 27.271 39.580 13 16.627 18.882 21.495 24.523 28.029 32.089 48.497 14 18.292 21.015 24.215 27.976 32.393 37.581 59.196 15 20.024 23.276 27.152 31.773 37.280 43.84 72.035 20 29.778 36.778 45.762 57.276 75.052 91.025 186.690 30 6.085 79.058 113.283 164.496 241.330 356.790 1,181.900 40 5.026 154.762 259.057 442.597 767.090 1,342.000 7,343.900 Table III Present Value of $1.00 - ( 1 + 7 ) " Period 4% 6% 8% 10% 12% 14 % 16% 18% 22% 24% 26% 30% 32% 962 .943 .926 .909 .893 .877 .862 .847 .833 .820 .806 .794 781 .769 .758 925 890 857 826 797 769 .743 .718 694 672 650 630 610 592 574 889 840 .794 .751 ,712 .675 .641 .609 579 551 .524 500 477 455 .435 855 .792 .735 683 .636 .592 .552 .516 482 451 .423 .397 .373 .350 .329 822 .747 681 621 567 .519 .476 .437 402 370 .341 .315 .291 269 .250 6 790 .705 .630 .564 .507 .456 .410 .370 .335 .303 .275 .250 .227 .207 .189 760 .665 .583 .513 .452 .400 .354 .314 .279 .249 .222 . 198 .178 .159 .143 731 627 .540 .467 .404 .351 .305 .266 .233 .204 .179 .157 139 .123 .108 703 .592 .500 .424 .361 .308 .263 .225 194 .167 .144 .125 . 108 .094 .082 10 676 .558 .463 .386 .322 .270 .227 .191 .162 .137 .116 .099 085 .073 .062 11 650 .527 .429 .350 .287 .237 .195 .162 135 .112 .094 .079 .066 .056 .047 12 625 .497 .397 .319 .257 .208 .168 .137 112 .092 .076 .062 .052 .043 036 13 601 .469 .368 .290 .229 . 182 .145 .116 093 075 .061 050 040 .033 .027 14 577 .442 .340 .263 205 160 .125 .099 078 062 049 .039 032 .025 .021 15 555 417 .315 .239 . 183 .140 .108 084 065 051 040 031 .025 .020 .016 20 456 .312 .215 .149 .104 073 .051 .037 .026 .019 .014 .010 .007 .005 .004 .308 4 .099 .057 .033 020 .012 .007 .004 .003 .002 .001 .001 .208 .097 .046 .022 .011 .005 .003 .001 .001 Table IV Present Value of Series of $1.00 Cash Flows - (1 - (1 + )) Period 4% 6% 8% 10% 12% 14% 18% 20% 22% 24% 25% 2 28% 30% 0.96 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 0.800 0.794 0.781 0.769 1.886 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 1.492 1.457 1.440 1.424 1.392 1.361 2.77 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 2.042 1.981 1.952 1.923 1.868 1.816 3.630 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 2.494 2.404 2.362 2.320 2.241 2.166 4.452 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 2.864 2.745 2.689 2.635 2.532 2.436 5.242 4.917 4.623 4.355 3.889 3.685 3.498 3.326 3.167 3.020 2.951 2.759 2.643 6.00 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 3.416 3.242 3.161 3.083 2.937 2.802 Co .73 6.210 5.747 5.335 4.968 4.639 4 4.344 4.078 3.837 3.619 3.421 3.329 3.241 3.076 2.925 7.43 5.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 3.786 3.566 3.463 3.366 3.184 3.019 8.11 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 3.923 3.682 3.571 3.465 3.269 3.092 8.760 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 4.035 3.776 3.656 3.544 3.335 3.147 9.38 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 4.127 3.851 3.725 3.606 3.387 3.190 9.986 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 4.203 3.912 3.780 3.656 3.427 3.223 10.563 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 4.265 3.962 3.824 3.695 3.459 3.249 11.118 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 4.315 4.001 3.859 3.726 3.483 3.268 20 13.590 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 4.460 4.110 3.954 3.808 3.546 3.316 30 17.292 13.765 11.258 9.427 8.055 7.003 6.177 5 5.517 4 7 4.979 4.534 4.160 3.995 3.842 3.569 3.332 10 19.793 15.046 11.925 9.779 8.244 7.105 6.234 5.548 4.997 4.544 4.166 3.999 3.846 3.571 3.333Future Value and Present Value Tables Table Future Value of $1.00(1 + r)n Period 4% 6% 8% 10% 12% 14% 20% 1.040 1.060 1.080 1.100 1.120 1.140 1.200 2 1.082 1.124 1.166 1.210 254 1.300 1.440 3 1.125 1.191 1.260 1.331 1.405 1.482 1.728 4 1.170 1.263 1.361 1.464 1.574 1.689 2.074 5 1.217 1.338 1.469 1.611 1.762 1.925 2.488 6 1.265 1.419 1.58/ 1.772 1.9/4 2.195 2.980 7 1.316 1.504 1.714 1.949 2.211 2.502 3.583 S 1.369 1.594 1.851 2.144 2.476 2.853 4.300 9 1.423 1.690 1.999 2.359 2.773 3.252 5.160 10 1.480 1.791 2.159 2.594 3.106 3.707 6.192 11 .540 1.898 2.332 2.853 3.479 1,226 7.430 12 1.601 2.012 2.518 3.139 3.896 4.818 8.916 13 1.665 2.133 2.720 3.452 1.364 5.492 10.699 14 1,732 2.261 2.937 3.798 4.887 6.261 12.839 15 1.801 2.397 3.172 4.177 5.474 7.138 15.407 20 2.191 3.207 4.661 6.728 9.646 13.743 $8.338 30 3.243 5.744 10.063 17.450 29.960 50.950 237.380 10 4.801 10.286 21.725 45.260 93.051 188.880 1,469.800 Table II Future Value of a Series of $1.00 Cash Flows (Ordinary Annuity)- (1 + r)" - 1 Period 4% 6% 8% 10% 12% 14% 20% 1.00 1.00 1.000 1.000 1.000 .00 1.000 2.04 2.060 2.080 2.100 2.120 2.140 2.220 3.12 3.18 3.246 3.310 3.374 3.440 3.640 4.24 4.375 4.506 4.641 4.779 4.921 5.36 .416 5.637 5.867 6.105 5.35 6.610 7.442 6.63. 6.975 7.336 7.716 3.11 8.536 9.930 7.898 8.394 8.923 9.487 10.089 10.730 12.916 9.214 9.098 10.637 11.436 12.300 13.233 16.499 10.583 11.491 12.488 13.580 14.776 16.085 20.799 10 12.006 13.18 14.487 15.938 17.549 19.337 25.959 11 13.486 14.972 16.64 18.531 20.65 23.04 32.150 15.026 16.870 18.977 21.385 24.133 27.271 39.580 13 16.627 18.882 21.495 24.523 28.029 32.089 48.497 14 18.292 21.015 24.215 27.976 32.393 37.581 59.196 15 20.024 23.276 27.152 31.773 37.280 43.84 72.035 20 29.778 36.778 45.762 57.276 75.052 91.025 186.690 30 6.085 79.058 113.283 164.496 241.330 356.790 1,181.900 40 5.026 154.762 259.057 442.597 767.090 1,342.000 7,343.900 Table III Present Value of $1.00 - ( 1 + 7 ) " Period 4% 6% 8% 10% 12% 14 % 16% 18% 22% 24% 26% 30% 32% 962 .943 .926 .909 .893 .877 .862 .847 .833 .820 .806 .794 781 .769 .758 925 890 857 826 797 769 .743 .718 694 672 650 630 610 592 574 889 840 .794 .751 ,712 .675 .641 .609 579 551 .524 500 477 455 .435 855 .792 .735 683 .636 .592 .552 .516 482 451 .423 .397 .373 .350 .329 822 .747 681 621 567 .519 .476 .437 402 370 .341 .315 .291 269 .250 6 790 .705 .630 .564 .507 .456 .410 .370 .335 .303 .275 .250 .227 .207 .189 760 .665 .583 .513 .452 .400 .354 .314 .279 .249 .222 . 198 .178 .159 .143 731 627 .540 .467 .404 .351 .305 .266 .233 .204 .179 .157 139 .123 .108 703 .592 .500 .424 .361 .308 .263 .225 194 .167 .144 .125 . 108 .094 .082 10 676 .558 .463 .386 .322 .270 .227 .191 .162 .137 .116 .099 085 .073 .062 11 650 .527 .429 .350 .287 .237 .195 .162 135 .112 .094 .079 .066 .056 .047 12 625 .497 .397 .319 .257 .208 .168 .137 112 .092 .076 .062 .052 .043 036 13 601 .469 .368 .290 .229 . 182 .145 .116 093 075 .061 050 040 .033 .027 14 577 .442 .340 .263 205 160 .125 .099 078 062 049 .039 032 .025 .021 15 555 417 .315 .239 . 183 .140 .108 084 065 051 040 031 .025 .020 .016 20 456 .312 .215 .149 .104 073 .051 .037 .026 .019 .014 .010 .007 .005 .004 .308 4 .099 .057 .033 020 .012 .007 .004 .003 .002 .001 .001 .208 .097 .046 .022 .011 .005 .003 .001 .001 Table IV Present Value of Series of $1.00 Cash Flows - (1 - (1 + )) Period 4% 6% 8% 10% 12% 14% 18% 20% 22% 24% 25% 2 28% 30% 0.96 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 0.800 0.794 0.781 0.769 1.886 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 1.492 1.457 1.440 1.424 1.392 1.361 2.77 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 2.042 1.981 1.952 1.923 1.868 1.816 3.630 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 2.494 2.404 2.362 2.320 2.241 2.166 4.452 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 2.864 2.745 2.689 2.635 2.532 2.436 5.242 4.917 4.623 4.355 3.889 3.685 3.498 3.326 3.167 3.020 2.951 2.759 2.643 6.00 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 3.416 3.242 3.161 3.083 2.937 2.802 Co .73 6.210 5.747 5.335 4.968 4.639 4 4.344 4.078 3.837 3.619 3.421 3.329 3.241 3.076 2.925 7.43 5.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 3.786 3.566 3.463 3.366 3.184 3.019 8.11 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 3.923 3.682 3.571 3.465 3.269 3.092 8.760 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 4.035 3.776 3.656 3.544 3.335 3.147 9.38 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 4.127 3.851 3.725 3.606 3.387 3.190 9.986 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 4.203 3.912 3.780 3.656 3.427 3.223 10.563 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 4.265 3.962 3.824 3.695 3.459 3.249 11.118 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 4.315 4.001 3.859 3.726 3.483 3.268 20 13.590 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 4.460 4.110 3.954 3.808 3.546 3.316 30 17.292 13.765 11.258 9.427 8.055 7.003 6.177 5 5.517 4 7 4.979 4.534 4.160 3.995 3.842 3.569 3.332 10 19.793 15.046 11.925 9.779 8.244 7.105 6.234 5.548 4.997 4.544 4.166 3.999 3.846 3.571 3.333Exercise 16-24 Net Present Value (Section 1) (L0 16-1) Jack and Jill's Place is a nonprofit nursery school run by the parents of the enrolled children. Since the school is out of town, it has a well rather than a city water supply. Lately, the well has become unreliable, and the school has had to bring in bottled drinking water. The school's governing board is considering drilling a new well (at the top of the hill, naturally). The board estimates that a new well would cost $3,150 and save the school $630 annually for \"ID years. The school's hurdle rate is 8 percent. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: Compute the new well's net present value. Should the governing board approve the new well? (Round your final answer to the nearest dollar amount.) Net present value _ Exercise 16-25 Internal Rate of Return (Section 1) (L0 16-1) Jack and Jill's Place is a nonprofit nursery school run by the parents of the enrolled children. Since the school is out of town, it has a well rather than a city water supply. Lately, the well has become unreliable, and the school has had to bring in bottled drinking water. The school's governing board is considering drilling a new well (at the top of the hill, naturally). The board estimates that a new well would cost $3,842 and save the school $680 annually for 10 years. The school's hurdle rate is 7 percent. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: Compute the internal rate of return on the new well. Should the governing board approve the new well? Approve? Internal rate of return