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Hyper - go is considering buying a new water treatment system for its plant in Austin, Texas. The investment proposal passed the initial screening tests

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Hyper - go is considering buying a new water treatment system for its plant in Austin, Texas. The investment proposal passed the initial screening tests (payback and accounting rate of return) so the company now wants to analyze the proposal using the discounted cash flow methods. The water treatment system costs 537 800, has a seven-year life, and has no residual value. The estimated net cash inflows from environmental cleanup savings are 59,000 per year over its life. The company's required rate of retum is 15% Click the icon to view Present Value of 51 table) Click the icon to view Present Value of Ordinary Annuity of S1 table) Read the requirements Years 17 Requirement 1. Compute the water treatment system's NPV (Enter any factor amounts to three decimal place. Xxx Use parenthesis examines sign for a negative NPV) Net Cash Annuity PV Factor Years Inflow (-10%) Present Value Present value of annuity Year Investment Net present value Requirement 2. Find the water treatment systems IR (ad percentage is not required The IRR (malvate of return) Requirement 3. Should Hyper- go buy the water treatment? Why no Requirement Compute the water treatment system's NPV (Enter any factor amounts to three decimal places, XXXX Use parentheses or a minus sign for a negative NPV) Net Cash Annuity PV Factor Years Inflow (I18% -7) Present Value Years 1.7 Present value of annuity Year o Investment Net present value Requirement 2. Find the water treatment system's IRR (exact percentage is not required) The IRR internal rate of return) is between Requirements. Should Hype-o buy the water treatment system? Why or why not? H00 buy the water treatment system. It has a NPV and its IRR the company's required rate of rotum ng buying a new water treatment system for its plant in Austin, Texas. The investment proposal passed the initial scre return) so the company now wants to analyze the proposal using the discounted cash flow methods. The water treat year life, and has no residual value. The estimated net cash inflows from environmental cleanup savings are $9,000 te of return is 18% view Pre S. Requirements npute the ses or 1. Compute the water treatment system's NPV 2. Find the water treatment system's IRR (exact percentage is not required) 3. Should Hyper - go buy the water treatment system? Why or why not? Presenta Investmen Net prese Print Done hd the water ate of return is between hould Hyper- go buy the water treatment system? Why or why not? Hyper - go is considering buying a new water treatment system for its plant in Austin, Texas. The investment proposal passed the initial screening tests and accounting rate of return) so the company now wants to analyze the proposal using the discounted cash flow methods. The water treatment system $37,800, han a seven year life, and has no residual value. The estimated not cash inflows from environmental cleanup savings are $9.000 per year ove company's required rate of return is 18% Click the icon to view Present Value of 51 table) Click the leon to view Present Value of Ordinary Annulty of S1 table) Read the requirements Years 16% and 18% Annuity PV Factor (I-18%, 0.7) Present Value Years 1.7 Present value of annul 14% and 16% Year Investment 12% and 14% Net present value Requirement 2. Find the water treatment sy 10% and 12% lage is not required) The IRR (internal rate of retumis between Requirement 3. Should Hyper-go buy the water treatment system? Why or why not? Hyper-90 buy the water treatment system. It has a V NPV, and its IRR the company's required rate of return Hyper- go in considering buying a new water treatment system for its plant in Austin, Texas The Investment proposal passed the initial screening tests (pay and accounting rate of return) so the company now wants to analyze the proposal using the discounted cash flow methods. The water treatment system cost $37,800, has a seven your life, and has no residual value. The estimated not cash inflows from environmental cleanup savings are $9,000 per your over its in company's required rate of return is 18% Click the icon to view Present Value of 51 table) (Click the icon to view Present Value of Ordinary Annully of 51 table) Read the requirements Yours Not Cash Inflow Annuity PV Factor (18%, 1-7) Present Value Present value of annuity Yours 17 Year o Investment blue Requireme atment system's IRR (ad porcentage is not required) should The IRAN between should not Requireme o buy the water treatment system? Why or why not? Hyper-90 buy the water treatment system It has a NPV, and its IRR the company required rate of retum Hyper - go is considering buying a new water treatment system for its plant in Austin, Texas. The investment proposal passed the initial screening tests and accounting rate of retum) so the company now wants to analyze the proposal using the discounted cash flow methods. The water treatment system $37,800 has a seven-year life, and has no residual value. The estimated net cash inflows from environmental cleanup savings are $9,000 per year ovom company's required rate of return is 18% (Click the icon to view Present Value of S1 table) (Click the icon to view Present Value of Ordinary Annuity of 51 table) Read the equirements Present Value Not Cash Annuity PV Factor Years Inflow (-18%, n-7) Years 1.7 Present value of annuity Year 0 Investment Net present value Requirement 2. Find the water treatment system's IRR (exact pet ed) The IRR (internal rate of retum) is between negative Requirement 3. Should Hyper-go buy the water treatment syste positive Hyper-go V buy the water treatment system. It has a NPV and its IRR the company's required rate of retum The investment proposal passed the initial screening tests (payback and accounting rate of return) so the company now wants to analyze the proposal using the discounted cash flow methods. The water treatment system costs 537,800, has a seven-year life, and has no residual value The estimated net cash inflows from environmental cleanup savings are 59,000 per year over its life. The company's required rate of return is 18% (Click the icon to view Present Value of 51 table.) (Click the icon to view Present Value of Ordinary Annuity of 51 table.) Read the requirements Years Net Cash Inflow Annuity PV Factor [-18% -?) Present Value Years 1.1 Present value of annuity Year o Investment Net present value Requirement 2. Find the water treatment system's IRR (exat percentage is not required) The IRR (Internal rate of retur) is between falls below Requirement 3. Should Hyper-go buy the water treatment system? Why why no is greater than Hyper-90 buy the water treatment system. It has a Y NPV and IRR the company's required rate of retum 9% Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 20.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.8420826 0.797 0.769 0.756 0.7430718 0.694 Period 3 0.9710.942 0.915 0.8890.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.6580641 0.609 0.579 Period 4 0.961 0.924 0 888 0 855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.5160.482 Period 5 0.951 0.906 0.8630 822 0.784 0.747 0.713 0681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 Period 60.942 0.8880.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.4320 4100.370 0.335 Period 7 0.933 0.871 0.813 0.760 0 711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 Period 8 0.923 0.853 0789 0.731 0,677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0 225 0.194 Period 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0 247 0.227 0.191 0.162 10 Period 110 896 0.8040.722 0.650 0.585 0.527 0.475 0429 0.388 0 350 0 287 0.237 0.215 0 195 0.162 0.135 Period 0.887 0 788 0.701 0625 0.557 0.497 0.444 0.397 0.356 0 319 0257 0.208 0 187 0.168 0.137 0.112 12 Period 10 879 0 77310 6810 60110530 0.4691 0 4150368 0 32610 29000 229018210 163 0.145 0 116 10.093 Period 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0 229 0.182 0.163 0.145 0.116 0.093 13 Period 0.870 0.758 0661 0.577 0.505 0.442 0.388 0 340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 14 Period 0.861 07430 642 0,555 0.481 0.417 0.362 0.315 0.2750 239 0.183 0 140 0.123 0.108 0.084 0.065 115 Period 0.853 0.728 0 623 0.534 0.458 0.394 0.339 0.292 0.252 0218 0.163 0.123 0.1070.093 0.071 0.054 16 Period 0.844 0.714 0.605 0,513 0.436 0.371 0.317 0.2700231 0 198 0.146 0.1080.093 0.080 0.060 0.045 17 Period 0.836 0.700 0.587 0.494 0.416 0.3500 296 0 250 0 212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 18 Period 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 10.1940 164 0.116 0.083 0070 0.060 0043 0.031 19 Period 0.820 0 673 0.554 0.456 0.377 0.312 0.258 0 2150 1780 1490 104 0.073 0.061 0.051 0.037 0.026 20 Period 0 811 0660 0.538 0.4390359 0.294 0 2420 1990 164 0.135 0.093 0064 0.053 0.044 0.031 0.022 121 y and IR ul Period 0.803 0.647 0.522 0.422 0.342 0.278 0 226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 22 Period 0.795 0.634 0.507 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 23 Period 0 788 0.622 0.492 0.3900 310 0.247 0.197 0.158 0.1260.102 0.066 0.043 0.035 0.028 0.019 0.013 24 Period 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 25 Period 0.772 0.598 0.464 0.361 0281 0.220 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 26 Period 10.764 0 586 0.450 0.347 0.268 0.2070 161 0.125 0.0980.076 0.047 0.029 0.023 0.0180.0110.007 27 Period 0.757 0.574 0437 0.333 0.255 0.196 0 150 0 116 0.090 0.069 0.042 0.026 0.0200.016 0.010 0.006 28 Period 0.749 0.563 0 424 0.321 0.243 0 185 0 1410.1070.082 0.063 0.037 0.022 0.017 0.014 0.008 0.005 29 Period 0742 0.552 0.412 0.308 0.231 0.174 0.131 0.099 0.0750.057 0.033 0.020 0,015 0,012 0.007 0.004 30 24 Period 0.780 0.610 0.478 0.375 0295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0030 0.024 0.016 0.010 25 Period 0.772 0.598 0.464 0.361 0281 0 220 0172 0.135 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 26 Period 0.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0.023 0.0180.0110.007 27 Period 0.757 0.574 0.437 0.333 0.255 0.1960.150 0.116 0.090 0.069 0.042 0.026 0.0200.06 0.0100 006 28 Period 0.7490563 0.42403210 243 0.185 0.141 0.107 0.082 0.063 0.037 0.022 0.017 0.014 0.008 0.005 29 Period 0.742 0.552 0.412 0.308 0 231 0.1740 131 0.099 0.075 0.057 0.033 0.0200.015.0012 0.007 0.004 30 Period 0.6720.453 0307 0208 0.142 0.097 0067 0.046 0.032 0.022 0.01 0.005 0.0040.003 0.001 0.001 40 Period 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.021 0.013 0.0090.003 0.001 0.001 0.001 50 puid IR quid 1% Present Value of Ordinary Annuity of $1 Periods 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.9430.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 1970 1942 1.9131.886 1.8591 833 1.808 1783 1.759 1736 1.690 1647 1.626 16051566 1528 Period 3 2.9412.8842.829 2.775 2.723 2.673 2.624 2577 2.531 2 4872.402 2 322 2283 2246 2.174/2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3 240 3.170 3,037 2.914 2855 2.798 2.690 2.589 Period 5 4.85314 713 4.580 4.452 4.329 4.212 4.100 3.9933.890 3.791 3.605 3.433/33523.2743 127 2 991 Period 6 5.795 5.601 5417 5242 5076 4.917 4.767 4623 4 486 4355 4 111 3.8893.784 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.3895 2065.033 4.8684 564 4.288 4.1604.0393 8123.605 Period 8 7 652 7.325 7020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4 639 4 487 434440783.837 Period 9 8.566 8 162 7 786 7.435 7 108 6.802 6 515 6 247 5 995 5.759 5 328 4.946 4772 46074 303 4.031 Period 10. 9.471 8.983 8.530 8.111 772273607024 6.710 6 418 6.145 5.650 5.216 5019 4.833 4.494 4.192 Period 1110.368 9.787 9.2538760 8 30678877499 7.139 6.805 6.495 5.938 5.453 5 234 5029 4656 4327 Period 12 11 255 10.575 9.954 9.3858 8638,384 7943 75367 1616.814 6. 1945.660 5.421 5 19747934 439 Period 131213411 348 10 635 9.986 9 394 8.853 8 358 7904 7.487 7 103 6.424 5.842 5.583 5.3424910 4.533 Period 1413 00412 106 11.296 10.563 9 899 9.295 8.745 8.2447.78673676 628 6 002 5.7245.468 5.008 4.611 Period 15.13.86512 849 11938 11 11810 380 9.7129 108 8 5598 0617 606 6 811 6.142 5 847 5575 5.092 4.675 Period 1614 71813.578 12.561 11.652 10.83810.1069.447 8.851 8 313 7.824 6.974 6.265 5.954 5.669 5.162 4730 Period 1715.562 14 292 13.16612. 166 11 27410.4771 9.763 9.122 8.544 8.022 7.1206.373) 6.047 5.749 5.222 4.775 Period 1816,39814 992 13.754 12.659 11.690 10.828 10.059 9.3728.756 8.2017.250 6.467 6.128 5.818 5.273 4.812 Period 1917 226 15.678 14 324 13. 134 12.08511 15810.336 9.604 8.950 8.365 7366 65506.198 5.877 5 316 4.844 Period 2018.04616 351 14.877 13.590 12.462 11.47010.594 9.818 9.129 8.514 7.469 6.623 6.259 5.929 5.3534870 Period 2118.857 17.011 15.415 14.029 12.82111.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 5.973 5.384 4.891 Period 22 19.660 17 658 15,937 14.451 13 163 12.042 11.061/10 201 9.442 8.772 7.645 6.7436 359 6.011 5.410 4.909 Period 2320 45618 292 16,444 14.857 13.48912 30311 272 10.371 9.580 8.883 7718 6.792 6.399 6.044 5.432 4.925 Period 2421 24318.914 16.936 15.247 13.79912 550 11.469 10.5299 707 8.9857.784 6.835 6.4346.073 5.451 4.937 Period 2522.023 19.523 17.41315622 14 09412.783 11.654 10.6759.8239.077 7.8436.873 6.464 6.097 5.467 4.948 Period 262279520 121 17 877 15.983 14.37513.00311 826 10.810 9 929 9.1617.896 6.906 6.491 6.118 5.480 4.956 Period 2723.560 20 707 18.327 16,330 14.64313.211 11.987 10.93510 027 9.237 7.9436.935 6.514 6.136 5,492 4.964 Period 2824 316 21.28118.764 16.663 14 89813.40612 1371105110 116 9.3077.984 6.961 6,534 6.1525.502 4.970 Period 2925 06621844 19 188 16.98415 14113.59112 278|11 158 10.1989.370 8.022 6.983 6.551 6.166 55104.975 Period 3025.80822 396 19.60017292 15 37213.76512 409 11 258 10 274 9.4278 055 7.003) 6 566 6.177 5.517 4.979 Period 4032.83527 355 23 115 19.793 17 1591504613,332 11.925 10.757 9.779 8,244 7 105 6.642 6.233 5.548 4.997 Indenho cache andar male analen order toalen noelen sonlaoodonarlo sollenalrore

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