Future Value and Value Tables Present Table I Future Value of $1.00(1 12% Perlod 4% 6% 8% 10% 14% 20% 1.040 1 1.060 1.080 1.100 1.120 1.140 1.200 1.254 1.300 1.082 1.124 1.166 1.210 1.440 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 1.338 5 1217 1.469 1.611 1.762 1.925 2.488 1,772 6 1.265 1.419 1.587 1.974 2.195 2.986 2.502 3.583 7 1.316 1.504 1.714 1.949 2.211 8 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 1.540 1.898 2.332 2.853 3.479 4.226 7.430 12 1.601 2.012 2.518 3.139 3.896 4.818 8.916 10.699 13 1.665 2.133 2.720 3.452 4.364 5.492 3.798 12.839 14 1.732 2.261 2.937 4.887 6.261 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 38,338 5.744 237.380 30 3.243 10.063 17.450 29.960 50.950 188.880 40 4.801 10.286 21.725 45.260 93.051 1,469.800 Table II Future Value of a Series of $1.00 Cash Flows (Ordinary Annuity) (1 -1 8% Period 4% 6% 10% 12% 14% 20% 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.220 2 2.040 2.060 2.080 2.100 2.120 2.140 3.122 3.184 3.246 3.310 3.374 3.440 3.640 4 4.247 4.375 4.506 4.641 4.779 4.921 5.368 r 5 5.416 5.637 5.867 6.105 6.353 6.610 7.442 6 6.633 6.975 7.336 7.716 8.115 8.536 9.930 8.394 7 7.898 8.923 9.487 10.089 10.730 12.916 11.436 12.300 13.233 16.499 8 9.214 9.898 10.637 10.583 16.085 9 11.491 12.488 13.580 14.776 20.799 10 12.006 13.181 14.487 15.938 17.549 19.337 25.959 13.486 14.972 16.646 18.531 20.665 23.045 11 32.150 12 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 20.024 23.276 27.152 15 31.773 37.280 43.842 72.035 20 29.778 36.778 45.762 57.276 75.052 91.025 186.690 113.283 1,181.900 30 56.085 79.058 164.496 241.330 356.790 767.090 40 95.026 154.762 259.057 442.597 1,342.000 7,343.900 Table III Present Value of $1.00 1 (1 Period 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% .943 806 794 758 1 .962 .926 .909 893 877 .862 .847 833 820 781 769 672 574 2 .925 890 .857 826 .797 .769 743 718 .694 .650 .630 610 .592 477 3 .889 840 .794 .751 .712 .675 641 .609 579 551 .524 500 455 435 482 4 855 792 735 .683 636 592 .552 516 451 423 397 373 350 329 822 5 .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 7 665 583 513 452 400 354 314 279 249 222 198 178 159 143 204 8 731 .627 540 467 .404 351 305 266 233 .179 .157 139 .123 108 308 082 9 .703 592 .500 424 361 263 225 .194 .167 144 125 .108 094 10 676 .558 463 386 322 270 227 191 .162 .137 .116 .099 .085 .073 .062 112 11 .650 527 429 350 287 237 .195 .162 135 .094 .079 066 .056 .047 112 12 .625 497 397 319 257 208 .168 137 .092 .076 .062 .052 043 .036 093 13 .601 469 368 .290 .229 .182 145 .116 .075 .061 .050 040 .033 027 021 14 577 442 340 .263 205 .160 .125 ,099 .078 062 .049 .039 .032 025 15 .555 417 315 239 .183 .140 .108 .084 065 051 .040 .031 025 020 .016 051 004 20 456 312 215 .149 .104 .073 .037 .026 019 014 ,010 007 .005 020 .003 30 308 174 .099 .057 .033 .012 .007 004 .002 .001 .001 40 208 097 .046 .022 .011 .005 003 .001 001 _ Table IV Present Value of Series of $1.00 Cash Flows 1 1- (1 Period 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 25% 26% 28% 30% 0.877 0.847 1 0.962 0.943 0.926 0.909 0.893 0.862 0.833 0.820 0.806 0.800 0.794 0.781 0.769 2 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 2.246 2.042 1.952 2.775 2.673 2.577 2.487 2.402 2.322 2.174 2.106 1.981 1.923 1.888 1.816 3.465 3.037 2.494 4 3.630 3.312 3.170 2.914 2.798 2.690 2.589 2.404 2.362 2.320 2.241 2.166 3.605 2689 5 4.452 4.212 3.993 3.791 3.433 3.274 3.127 2.991 2.864 2.745 2.635 2.532 2.436 6 5.242 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 3.167 3.020 2.951 2.885 2.759 2.643 7 6.002 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 5.335 3.076 8 6.733 6.210 5.747 4.968 4.639 4.344 4.078 3.837 3.619 3.421 3.329 3,241 2.925 7,435 4.031 9 6.802 6.247 5.759 5.328 4.946 4.607 4.303 3.786 3.566 3.463 3.366 3.184 3.019 5,650 4,833 6.145 10 8.111 7.360 6.710 5.216 4.494 4.192 3.923 3.682 3.571 3.465 3.269 3.092 11 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 7,536 12 9.385 8.384 6.814 6.194 5.660 5.197 4.793 4.439 4.127 3.851 3.725 3.606 3.387 3.190 7.904 13 9.986 8.853 7.103 6.424 5.842 5.342 4.910 4,533 4.203 3.912 3.780 3.656 3.427 3.223 14 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 15 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 11.470 3.316 20 13.590 9.818 8.514 7.469 6.623 5.929 5.353 4.870 4.460 4.110 3.954 3.808 3.546 4,534 7.003 3.569 30 17.292 13.765 11.258 9.427 8.055 6.177 5.517 4.979 4.160 3.995 3.842 3.332 5.548 40 19.793 15.046 11.925 9.779 8.244 7.105 6.234 4.997 4.544 4.166 3.999 3.846 3.571 3.333 Allegience Insurance Company's management is considering an advertising program that would require an initial expenditure of $180,395 and bring in additional sales over the next five years. The projected additional sales revenue in year 1 is $84,000, with associated expenses of $29,500. The additional sales revenue and expenses from the advertising program are projected to increase by 10 percent each year. Allegience's tax rate is 40 percent. (Hint: The $180,395 advertising cost is an expense.) Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Compute the payback period for the advertising program. 2. Calculate the advertising program's net present value, assuming an after-tax hurdle rate of 10 percent. (Round your intermediate and final answers to the nearest whole dollar.) Answer is not complete. Payback period Net present value 1 years 2