HI Corporation is considering the purchase of a machine that promises to reduce operating costs by the same amount for every year of its 6-year useful life. The machine will cost $207,580 and has no salvage value. The machine has a 14% internal rate of return. (Ignore income taxes.) Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Required: What are the annual cost savings promised by the machine? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Annual cost savings EXHIBIT 14B-1 1 Present Value of $1; ((1+r))" 0.658 0.524 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 0.962 22% 23% 24% 25% 1 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 2 0.800 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 vor 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 3 0.640 cas 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 2 0.624 502 0.641 0.609 os ca 0.593 0702 725 4 200 con 0.855 0.551 0.579 ce cac 0.564 no 0.537 0.512 0.763 0.823 ces 0.792 0.735 0.708 ca 0.683 0.659 0.636 - 22 200 0.613 0.592 0.572 24 0.552 CE 0.516 0.499 0.534 5 0.482 ca 0.467 wa new 0.451 0.822 0.437 0.784 0.423 0.410 0.747 0.713 0.681 40 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 200 0.456 200 0.437 ma 0.419 0.402 0.386 0.370 6 0.355 0.341 0.328 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 - 0.507 a 0.480 un 0.456 ses 0.432 nacs 0.410 0.390 0.370 0.352 OS 0.335 0.319 0.303 7 0.289 0.665 0.760 0.275 0.711 0.262 on 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0312 0.354 0223 COS co 0.333 0.314 0.296 0.279 0.263 407 8 0.249 0.235 0.222 an 0.731 0.210 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 30 0.327 200 0266 0.305 none co 0.285 0.266 2014 ACO 0.233 2 0.249 0.218 9 0.204 0.645 0.703 2 0.179 an 0.592 0.191 0 201 0.544 nac 0.500 0.460 0.391 0.168 23 0.424 0.361 0225 ata 0.333 no 0.308 ac 10 0.263 au 0.284 co 0.243 550 0.225 40 0.209 0.194 0.180 10 0.167 0.676 0.155 0.614 0.144 non 0558 0.508 0.463 0.422 0.134 0 0.352 0.386 0.322 11 0.295 0.270 12 avad CEO COS 0.247 0.227 52 0.208 0.191 22 11 200 0.650 0.176 0.162 0.585 0.149 0.137 0212 209 ACT 0.475 0.429 0.527 0.126 0.116 0.107 0.388 0.350 190 0.317 0.287 0.261 0.237 10 190 1 12 409 0.215 0.195 0.178 0.162 0207 12 21 0.148 0.135 0.123 0206 0.625 0.112 0.103 0.557 0.094 0 256 0.497 0.086 0.444 0.397 0.356 0221 0.319 0.286 ca 0.257 100 0.231 0.208 0.187 0.168 0.152 0.137 0.124 co 13 200 20 0.112 0.601 0.530 296 0.102 0.092 0.083 0.076 0.069 0.469 0.415 0.368 20 0259 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 677 14 200 0.577 0.505 0.084 0.075 0.068 0.061 0.055 240 0.442 caca 02 0.388 0.340 no 0.299 0.263 0.205 0.232 000 0090 40 000 0.181 poco 0.160 sed 0.141 0.125 0.111 0.099 0.088 0.078 IS 0.069 200 0.555 0.062 0.055 0.049 0.044 0.481 0.417 0.362 0.315 0.275 0.239 10 0.209 0.183 0.160 0.123 0.140 so 094 220 0.108 0.095 aca 0.084 20 16 0.074 | 0.065 0.057 0.051 0.045 100 0.458 0.5.54 0.040 0.035 0.394 0.339 141 0.252 0.292 0.218 0.188 0.163 107 0.141 0.123 002 0.107 091 20 20 17 0.093 0.081 0.071 0.062 0.054 0.047 0.042 17 0.036 0.032 0.028 1 as 0.436 0.513 0.371 0.7 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 060 0.060 a 02 020 0.052 0.045 Anc nar 18 0.039 0.034 162 0.030 0.026 20 0.494 0.416 0.023 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 mo 0.038 0.032 19 0229 0.028 0.058 0.024 0.475 0.021 0.396 0.331 0.277 0.232 1.21 0.194 0.164 0.138 0.194 0.116 0.098 0.138 0.018 0051 0.083 0.060 02 0.070 000 0.051 0.043 002 0.037 0.031 0.027 0.023 0.020 0017 20 0.017 0.014 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.087 0.104 0.014 0.073 0.061 002 0.051 ad 0 0.037 0.031 0.043 0.026 1.05 21 0.014 0.022 0.019 0.016 100 0.012 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0.037 02 09 0.031 0.026 0.022 0.018 0.015 22 0.013 0.011 0.009 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.050 0046 0.040 0.038 0.032 0.026 0.024 0.018 0.015 23 0.013 0011 0.009 0.406 0.011 0.326 0.007 0.262 0.211 0.170 0.138 0.112 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 24 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0,082 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0.015 0.013 0.010 0.008 25 0.375 0.295 0.007 0.006 0.005 0.233 0.184 0.146 0.146 0.116 0.092 0.074 0.059 0.047 0,038 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 26 0.361 0.281 0.220 0.172 0.135 0.135 0.106 0.084 0.066 0.053 0.042 0,033 0.026 0.021 0.017 we 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 27 0.347 0.268 0.207 0.161 0.125 0.098 0,076 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0.011 0.009 0.007 0.006 0.0005 0.004 0.003 28 0.333 0.255 0.02 0.1960.150 0.116 0.090 0.069 0.054 0.042 0.033 0,026 0.020 0.016 0.012 0.010 0.0008 0.006 0.005 0.014 0.003 0.002 0.002 29 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.048 0.037 0.029 0.022 0.017 0.014 0,011 0.008 0.0/)6 0.005 0.004 0.003 0.002 0.002 0.002 0.002 30 0.308 0.231 0.174 0.131 0,099 0.075 0.057 0.044 0.033 0.026 0.020 0.015 0.012 0.009 0.007 0.005 0.004 0.003 0.002 40 0.003 0208 0 142 0097 0067 00460032002200150011 0008 00050004 003 0002 0.00100010001 0000 0000 0000 0000 0000 0.002 0.001 0.091 EXHIBIT 14B-2 Present Value of an Annuity of $1 in Arrears; :[1-01+] 1 ((1 + r))" Periods 1 2 3 4 5 6 7 8 9 10 10 1 11 1 12 12 13 14 14 TE 15 IC 16 17 18 18 19 20 20 21 21 22 2 23 24 25 26 27 28 29 30 40 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.60S 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 2.775 2.723 2.673 2.624 2.577 2531 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.co car 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1.952 2207 3.630 3.546 3.465 2900 3.387 3.312 3.240 3.170 3.102 3.037 ma 2.974 2.914 2.798 2.855 2.743 To son 2004 mo 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 00 3.605 3.517 3.433 3.352 2 oso 3.274 200 3.199 3.127 3.058 2.991 2.926 2.864 or 2.803 5.242 2.745 5.076 2.689 4.917 4.767 4.623 220 4.486 co 4.231 4.355 3.998 4.111 3.889 3.784 3.685 3.589 3.498 ca 3.410 3.326 3.245 | 3.167 3.092 3.020 | 2.951 100 6.002 5.786 5.582 5.389 5.206 1200 5.033 4.868 4.712 4.564 4.423 - 4.288 ca 4.160 4.039 3.922 3.812 3.706 3.508 3.605 3.416 20 3.327 6.463 6.733 6.210 3.2423.161 davca 400 5.971 5.747 con 5.335 5535 5.146 o 4.968 1242 4.799 4.639 4.487 4.344 ac 4.078 end ce *** 4.207 con 24 3.726 and 3.954 3.837 an 3.619 CA 7.435 3.518 3.421 7.108 3.329 2010 6.802 2 6.515 6.247 5.995 5.759 5.537 | 5.328 5.132 200 Tea 20 od 4.946 4.772 4.607 nas 4.303 ca 4.451 269 4.031 2002 4.163 3.905 3.786 3.673 8.111 3.566 000 7.722 3.463 7.360 ac 7.024 6.710 6.418 sce 5.889 6.145 5.650 104 200 102 5.426 5.216 5.019 20 100 ac 4.659 an 4.833 4.494 10 190 0 con 4.339 4.054 an 4.192 3.923 3.799 co 3.682 8.760 3.571 8.306 7.887 7.499 ce 7.139 6.805 6.495 6.207 To 3.938 OOCO 5.687 5.453 3.234 0205 5.029 4.836 4.656 8284 2161 CO 70427526 4.486 4.327 100 4.177 9.385 C104 8.384 8.863 3.902 4.035 3.776 3.656 ECCO 2010 7.161 7.943 7.536 6.814 6.492 104 5.918 6.194 20 5.421 5.660 5.197 4.988 4.793 2220 192 200 DOC 2051 299 4.611 4.127 0 7207 4.439 4.278 0250 7102 9.986 6760 9.394 19 7004 3.725 8.853 3.985 3.851 00 8.358 7.904 7.103 7.487 10 20 502 6.750 6.424 6.122 2010 4215 1200 5.342 4522 3.842 5.583 5.118 000 20 4.715 4202 4.910 2052 2013 4.533 0224 2900 4.362 2900 4.203 4.053 3.912 co 10.563 9.899 9.295 22 8.745 3.912 | 3.780 8.244 7.786 200 2000 12 5.16 7.367 6.982 6.628 6.302 6.002 261 5.724 5.468 1000 25 100 DEE 5.229 coca ca 5.008 4.432 4.802 4.611 EERS 4.265 4.108 3.962 3.824 11.118 10.380 9.712 9.108 8.559 04 8.061 7.606 7.191 6.811 6.462 200 6.142 5.847 42 5.575 5.324 127 5.092 oci 4.876 4.675 4.489 20 4.315 11.652 10.838 10.106 9.447 4.153 4.001 3.859 cos 8.851 7.824 8.313 7.379 6.974 6.604 sos SOS 6.265 5.954 5.668 5.405 5.162 A 257 ca 200 4.938 4.730 4.536 4033 4.189 4.357 4.033 04 8029 12.166 11.274 10.477 9.763 3.887 9.122 8.544 8.022 7.549 7.120 6.729 6.373 520 6.047 5295 ICCO 5.749 5.475 4925 4201 5.222 1050 20 100g 4.990 4.775 4.576 2 4.391 CAC 4.219 190 12.659 11.690 10.828 10.059 9.372 4.059 7.702 7.250 3.910 ca 8.756 8.201 FO 6.840 6.128 6.467 5.818 5.534 4242 10230 A on 5.273 12.12 2008 02 5.033 4.812 4,608 4.419 25 4.243 4.080 3.928 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 7.366 CE 6.938 6.550 6.198 5.877 5.584 5.316 5.070 1440 4.843 4.635 4.442 A 002 4.263 OS 13.590 12.462 11.470 10.594 9.818 3.942 9.129 8.514 4.097 7.963 7.469 7,025 6.623 6.259 5.929 5.628 ona 5.353 AC 5.101 ACO 2727 420 4.870 4.657 4.460 0025 2T 4.110 4.279 3.954 14.029 12.821 11.764 10.836 10.0179.292 8.649 8.075 7.562 7.102 6.687 6.312 5.973 AC 5.665 420 176 5.384 14 ACT 121 4.891 5.127 4.675 121 0190 4.292 11061 4.476 1001 14.451 13.163 12.042 11.061 10.201 3.963 9.442 8.772 7120 4.121 8.176 7.645 7.170 6.743 6.359 6.011 5.696 5 14 5.410 5.149 4.909 4.690 4.488 120 4.302 3.970 14.857 13.489 12.303 11.272 10.371 9.580 8.883 4.1.30 8.266 7230 7.718 7.230 6.792 6.399 6.044 5.723 5.432 5.167 4.925 4.703 # 4. 4.311 4.499 4.137 2017 3.976 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7.784 7.283 6.835 6.434 6.073 5.746 5.451 5.182 d 037 4.507 4.318 4.143 3.981 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 7.330 6.873 6.464 6.464 6.097 6.097 5.766 5.467 5.195 4.948 4.721 4.514 4.323 4.147 3.985 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4.956 4.728 4.520 4.328 4.151 3.988 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7.984 7.441 6.961 6.534 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4.159 3.994 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7.496 7.003 6.566 6.172 5.829 5.517 5.235 4.979 4.746 4.534 4.339 4.160 3.995 19.793 17.159 15.046 13.332 11.925 10.757 | 9.779 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4.544 4.347 4.166 3.999 4.147