i Reference - - X 16% 18% 20% 0.862 1.605 12% 14% 15% 0.893 0.877 0.870 1.690 1.647 1.626 2.402 2.322 2.283 3.037 2.914 2.855 3.605 3.433 3.352 2.246 0.847 0.833 1.566 1.528 2.174 2.106 2.690 2.589 3.127 2.991 2.798 3.274 3.685 4.111 3.889 3.784 4.564 4.288 4.160 4.968 4.639 4.487 5.328 4.946 4.772 5.6505.216 5.019 4.039 4.344 3.498 3.326 3.812 3.605 4.078 3.837 4.303 4.031 4.494 4.192 4.607 4.833 4.327 4.656 4.793 4.439 5.938 5.453 5.234 6.194 5.660 5.421 6.424 5.842 5.583 6.628 6.002 5.724 6.811 6.142 5.847 5.029 5.197 5.342 5.468 5.575 4.910 4.533 5.008 4.611 5.092 4.675 Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2531 2.487 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 Period 5 4.8534.713 4.580 4.452 4.329 4212 4.100 3.993 3.890 3.791 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.4864.355 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 | 5.335 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 7.0246.710 6.418 6.145 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 Period 13 12.134 11.348 10.635 | 9.986 9.394 8.853 8.358 7.904 7.487 7.103 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 Period 16 14.718 13.578 12.561 11.652 10.838 10.1069.447 8.851 8.313 7.824 Period 17 15.562 14.292 | 13.166 | 12. 166 11.274 10.4771 9.763 9.122 8.544 8.022 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 Period 19 17.226 15.678 | 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 Period 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 Period 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.2019.442 8.772 Period 23 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 95808.883 Period 24 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.8239.077 Period 26 22.795 20.12117.877 15.983 14.375 13.003 11.826 10.8109.929 9.161 Period 27 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 Period 28 24.316 21.28118.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 Period 29 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370 Period 30 25.80822.396 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427 Period 40 32.835 27-355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 Period 50 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 5.669 5.749 6.974 6.265 5.954 7.1206.373 6.047 7.250 6.467 | 6.128 7.366 6.550 6.198 7.4696.623 6.259 5.818 5.877 5.162 4.730 5.222 4.775 5.273 4.812 5.316 4.844 5.353 4.870 5.929 5.973 6.011 7.562 6.687 6.312 7.645 6.743 6.359 7.718 6.792 6.399 7.784 6.835 6.434 7.843 6.873 6.464 6.044 5.384 4.891 5.410 4.909 5.432 4.925 5.451 4.937 5.467 4.948 6.073 6.097 6.118 7.896 6.906 6.491 7.943 6.935 6.514 7.984 6.961 6.534 8.022 6.983 6.551 8.055 7.003 6.566 6.136 6.152 6.166 6.177 5.480 4.956 5.492 4.964 5.502 4.970 5.510 4.975 5.517 4.979 8.244 7.105 6.642 6.233 5.548 4.997 8.304 7.133 6.661 6.246 5.554 4.999 Print Done - X Reference Present Value of $1 % % 6% 7% 8% 0.926 0.857 1% 2% 3% 4% 5% 0.990 0.980 0.971 0.962 0.952 0.980 0.961 0.943 0.925 0.907 0.971 0.942 0.915 0.889 0.864 0.961 0.924 0.888 0.855 0.823 0.951 0.906 0.863 0.822 0.784 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 0.943 0.935 0.890 0.873 0.840 0.816 0.792 0.763 0.747 0.713 9% 10% 12% 0.917 0.909 0.893 0.842 0.826 0.797 0.772 0.751 0.712 0.708 0.683 0.636 0.650 0.621 0.567 14% 15% 16% 18% 20% 0.877 0.870 0.862 0.847 0.833 0.769 0.756 0.743 0.718 0.694 0.675 0.658 0.641 0.609 0.579 0.592 0.572 0.552 0.516 0.482 0.519 0.497 0.476 0.437 0.402 0.794 0.735 0.681 0.705 0.666 0.630 0.456 0.370 0.335 0.314 0.279 0.665 0.623 0.400 0.942 0.888 0.837 0.790 0.746 0.933 0.871 0.813 0.760 0.711 0.923 0.853 0.789 0.731 0.677 0.914 0.837 0.766 0.703 0.645 0.905 0.820 0.744 0.676 0.614 0.583 0.540 0.582 0.596 0.564 0.507 0.547 0.513 0.452 0.502 0.467 0.404 0.460 0.424 0.361 0.422 0.386 0.322 0.627 0.592 0.266 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.233 0.351 0.308 0.544 0.500 0 194 0.225 0.191 0.558 0.508 0.463 0.270 0.162 0.475 0.429 0.497 0.444 0.397 0.469 0.415 0.368 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 0.356 0.319 | 0.257 0.208 0.187 0.168 0.137 0.112 0.326 0.290 | 0.229 0.182 0.163 0.145 0.116 0.093 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.388 0.340 0.417 0.362 0.315 0.458 0.394 0.339 0.292 0.123 0.371 0.317 0.270 0.350 0.071 0.054 0.060 0.045 0.051 0.038 0.296 0.252 0.218 0.163 0.231 0.198 0.146 0.212 0.180 0.130 0.194 0.164 0.116 0.178 0.149 0.104 0.250 0.107 0.093 0.093 0.080 0.081 0.069 0.070 0.060 0.061 0.051 0.108 0.095 0.083 0.073 0.331 0.277 0.232 0.043 0.031 0.312 0.258 0.215 0.037 0.026 0.294 0.199 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 Period 12 0.887 0.788 0.701 0.625 0.557 Period 13 0.879 0.773 0.681 0.601 0.530 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 Period 15 0.861 0.743 0.642 0.555 0.481 Period 16 0.853 0.7280.623 0.534 Period 17 0.844 0.714 0.605 0.513 0.436 Period 18 0.836 0.700 0.587 0.494 0.416 Period 19 0.828 0.686 0.570 0.475 0.396 Period 20 0.820 0.673 0.554 0.456 0.377 Period 21 0.811 0.660 0.538 0.439 0.359 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 Period 23 0.795 0.634 0.507 0.406 0.326 Period 24 0.788 0.622 0.492 0.390 0.310 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 Period 26 0.772 0.598 0.464 0.361 0.281 Period 27 0.764 0.586 0.450 0.347 0.268 Period 28 0.757 0.574 0.437 0.333 0.255 Period 29 0.749 0.563 0.424 0.321 0.243 Period 30 0.742 0.552 0.412 0.308 0.231 Period 40 0.672 0.453 0.307 0.208 0.142 Period 50 0.608 0.372 0.228 0.141 0.087 0.242 0.226 0.184 0.262 0.211 0.170 0.1640.135 0.093 0.150 0.123 0.083 0.138 0.112 0.074 0.126 0.102 0.066 0.116 0.092 0.059 0.064 0.053 0.044 0.031 0.022 0.056 0.046 0.038 0.026 0.018 0.049 0.040 0.033 0.022 0.015 0.043 0.035 0.028 0.019 0.013 0.038 0.030 0.024 0.016 0.010 0.247 0.197 0.158 0.184 0.146 0.220 0.172 0.135 0.207 0.161 0.125 0.196 0.150 0.116 0.106 0.084 0.053 0.098 0.076 0.047 0.090 0.069 0.042 0.082 0.063 0.037 0.075 0.057 0.033 0.185 0.141 0.107 0.033 0.026 0.021 0.014 0.009 0.029 0.023 0.018 0.011 0.007 0.026 0.0200.016 0.010 0.006 0.022 0.017 | 0.014 0.008 0.005 0.020 0.015 0.012 0.007 0.004 0.005 0.0040.003 0.001 0.001 0.174 0.131 0.099 0.097 0.067 0.046 0.032 0.022 0.011 0.054 0.034 0.021 0.013 0.009 0.003 0.001 0.001 0.001 Print Done - X 0 Requirements 1. Compute the water treatment system's NPV. 2. Find the water treatment system's IRR (exact percentage is not required) 3. Should Dyna - pro buy the water treatment system? Why or why not? Print Done This Question: 4 pts 20 of 22 (0 complete) This Test: 75 pts possib Dyna - pro 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 $41,400, has a six-year life, and has no residual value. The estimated net cash inflows from environmental cleanup savings are $10,000 per year over its life. The company's required rate of return is 14%. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the fequirements Requirement 1. Compute the water treatment system's NPV. (Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative NPV.) Net Cash Inflow Annuity PV Factor (i=14%, n=6) Years Present Value Years 1-6 Present value of annuity Year 0 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 Requirement 3. Should Dyna - pro buy the water treatment system? Why or why not? Dyna - pro buy the water treatment system. It has a NPV, and its IRR the company's required rate of return