Home Insert Draw Draw Design Layout References Mailings Review Share Comments View Tell me + + 2 211 Times New... 12 AA Aa Sve AaBbODE LE ABECEDE AaBbccDc Aabbccd Ek AaBb AasbCCDCE No Spacing Heading Paste B TUX x A A Normal Heading 2 Title v Subtitle pictate Styles Pare Sensitivity Problem III The City of Dallas is studying a 700-acre site for a new landfill. The new site will save $70,000 in urinual operating costs for 10 years, as Dallas currently uses landfills of neighboring municipalities. Other data are: Purchase price per acre: $550 Site preparation costs: $110.000 Hurdle rate: 6% Ignore income taxes. Year FV of $1 at 6% FV of an ordinary PV of $1 at annuity at 6% 6% 1 2 3 4 5 6 7. 8 1.060 1.124 1.191 1.263 1.338 1.419 1.504 1.594 1.690 1.791 1.000 2.060 3,184 4.375 5.637 6.975 8.394 9.898 11.491 13.181 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 PV of an ordinary annuity at 6% 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 7.360 10 Home Insert Draw Draw Design Layout References Mailings Review View Tell me Share P Comments Times New... 12 AA Aa ve A 1 AaBbODE Normal . bt hasbccDc Heading Paste B I U V X X x ADA Ne Spacing Heacing 2 Title Subtitle Sty as Pare Dictate Sensitivity 1894 Periods 1 2 3 4 5 7 9 10 Future Value of a Series of Si Cash Flows 4% 8% 10% 12% 14% 16% 20% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.040 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.220 3.122 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 4.247 4.375 4.506 4.641 4.779 4.921 5.067 5.215 5.368 5.416 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 6.633 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 7.898 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 9.214 9.898 10.637 11.436 12.300 13.233 14.240 15.327 16.499 10.583 11.491 12.488 13.580 14.776 16.085 17.519 19.086 20.799 12.006 13.181 14.487 15.938 17.549 19.337 21.321 23.521 25.059 Present Value of a Series of Si Cash Flows 49% 6% 8% 1249 14% 16% 18% 20" 0.962 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.886 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.775 2.673 2.577 2.487 2.402 2.246 2.174 2.106 3.630 3.465 3.312 3.170 2.914 2.798 2.690 2.589 4.452 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 5.242 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 6.002 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 6.733 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 7.435 6.802 6.247 5.759 4.946 4.303 4.031 8.111 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 10% Periods 1 2 3 4 5 7 8 9 10) 4.607 Required: A. Usc thc nct-present-value method and determine whether the landfill should be acquired. B. Determine the landfill's approximate internal rate of return, using the tables above