Future Value of an Annuity of $1 TABLE 11.3A Periods* 2% 3.75% 4.25% 7% 3% 4% 5% 6% 8% 1.0000 2.0200 1.0000 1.0000 1.0000 1 1.0000 1.0000 1.0000 1.0000 1.0000 2.0700 3.2149 2.0300 2 2.0375 2.0400 2.0425 2.0500 2.0600 2.0800 3 3.0604 3.0909 3.1139 3.1216 3.1293 3.1525 3.1836 3.2464 4 4.1216 5.2040 6.3061 4.2623 5.4434 4.1836 4.2307 4.2465 4.3101 4.3746 5.6371 4.4399 4.5061 5.7507 7.1533 5.3091 5.3893 5.4163 5.5256 5.8666 6.5914 6.6330 6 6.4684 6.6748 6.8019 6.9753 7.3359 7.8983 7 7.4343 7.6625 7.8386 7.9585 8.1420 8.3938 8.6540 8.9228 8.5830 8 8.8923 9.1326 9.2142 9.2967 9.5491 9.8975 10.2598 10.6366 10.4750 9 9.7546 10.1591 10.5828 10.6918 11.0266 11.4913 11.9780 12.4876 14.4866 45.7620 11.4639 12.0061 29.7781 13.8164 10 10.9497 11.8678 12.1462 12.5779 13.1808 20 24.2974 26.8704 29.0174 30.5625 33.0660 36.7856 40.9955 Periods* 9% 10% 11% 12% 13% 14% 15% 20% 25% 1.0000 2.1200 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 2.0900 3.2781 2.1100 2.1300 2.1500 2 2.1000 2.1400 2.2000 2.2500 3 3.3100 3.3421 3.3744 3.4069 3.4396 3.4725 3.6400 3.8125 5.3680 7.4416 4.5731 4.6410 6.1051 7.7156 4 4.7097 4.7793 4.8498 4.9211 4.9934 5.7656 8.2070 11.2588 6.6101 8.5355 6.7424 8.7537 5.9847 6.2278 7.9129 6.3528 6.4803 7.5233 8.3227 8.1152 9.9299 10.0890 12.2997 9.2004 10.4047 12.9159 7 9.4872 9.7833 10.7305 11.0668 15.0735 11.8594 11.0285 11.4359 12.7573 13.2328 13.7266 16.4991 19.8419 13.5975 15.9374 15.4157 18.4197 9 14.1640 16.0853 16.7856 20.7989 25.8023 13.0210 14.7757 10 15.1929 16.7220 20.3037 17.5487 19.3373 25.9587 33.2529 20 342.9447 51.1601 57.2750 64.2028 72.0524 80.9468 91.0249 102.4436 186.6880 *There is one payment each period. Future Value of $1 TABLE 11.1A Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 1.0000 1.0000 1.0000 1.0425 1.0868 1.1330 1.1811 1.0000 0 1.0000 1.0000 1.0000 1.0000 1.0000 1.0700 1.1449 1.0800 1 1.0200 1.0300 1.0375 1.0400 1.0500 1.0600 1.0816 1.1249 1.1699 1.0404 1.0609 1.0927 1.1255 1.1593 1.1941 1.2299 1.1025 1.1236 2 1.0764 1.1664 1.1168 3 1.0612 1.1576 1.1910 1.2250 1.2597 1.2625 1.3382 1.4185 1.5036 1.2155 1.2763 1.3401 1.3108 4 1.0824 1.1587 1.3605 5 1.2167 1.2313 1.4026 1.4693 1.5869 1.1041 1.2021 1.1262 1.2472 1.2939 1.3425 1.2653 1.2837 6 1.5007 7 1.1487 1.3159 1.3382 1.4071 1.6058 1.7138 1.1717 1.3686 1.4775 1.8509 8 1.2668 1.3951 1.5938 1.7182 1.4544 1.1951 1.3048 1.3928 1.4233 1.5513 1.6895 1.8385 1.9990 1.7906 3.2071 1.3439 14450 1.9672 2.1589 10 1.2190 1.4802 1.5162 1.6289 1.4859 2.6533 20 1.8061 2.0882 2.1911 2.2989 3.8697 4.6610 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 1.0000 1.0000 1.1000 1.0000 1.1100 1.2321 1.3676 1.5181 1.0000 1.0000 1.0000 1.2000 0 1.0000 1.0000 1.0000 1.1300 1.2769 1.1200 1.1400 1 1.0900 1.1500 1.2500 1.3225 1.5209 1.5625 1.9531 2 1.1881 1.2100 1.2544 1.2996 1.4400 1.2950 1.4049 1.4429 16305 1.3310 1.4815 1.7280 1.6890 1.7490 2.4414 1.4116 1.4641 1.5735 2.0736 1.6105 1.7623 1.8424 1.9254 2.4883 5 1.5386 1.6851 2.0114 3.0518 1.8704 2.0762 2.3045 2.5580 2.8394 1.6771 1.7716 1.9738 6 2.0820 2.1950 2.3131 2.9860 3.8147 1.8280 2.3526 3.5832 7 1.9487 2.2107 2.5023 2.6600 4.7684 2.1436 2.3579 2.5937 6.7275 2.8526 8 1.9926 2.4760 2.6584 3.0040 3.3946 3.0590 4.2998 5.9605 7.4506 2.1719 2.3674 5.6044 2.7731 5.1598 9 3.2519 3.5179 6.1917 9.3132 10 3.1058 3.7072 4.0456 9.6463 20 8.0623 11.5231 13.7435 16.3665 38.3376 86.7362 considering the purchase of a new piece of equipment. The equipment costs $51,900, and ill have a salvage value of $5,100 after eight years. Using the new piece of equipment will increase Grady's Grady Corp. annual cash flows by $6,190. Grady has a hurdle rate of 12%. ( Future Value of $1, Present Value of $1, Future Value Annulty of $1, Present Value Annulty of $1.) (Use appropriate factor from the PV tables.) a. What is the present value of the increase in annual cash flows? (Round your answer to 2 decimal places.) Present Value b. What is the present value of the salvage value? (Round your answer to 2 decimal places.) Present Value c. What is the net present value of the equipment purchase? (Negative value should be indicated by a minus sign. Round your intermediate calculation and final answer to 2 decimal places.) Net Present Value d. Based on financial factors, should Grady purchase the equipment? Yes No