Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ICick the icon to view the expansion estimates? (Cick the icon to viaw the present vake annuty factoc table ) (Cilick tho icon to view

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
ICick the icon to view the expansion estimates? (Cick the icon to viaw the present vake annuty factoc table ) (Cilick tho icon to view the present value tacior table) (Crick the icon to vaw the future value annuity factor tasile) [Click the rcon to vow the futuro vaivolactor tabile] Renod the manuipinents: Requirement 1. What is the proyect's NPV? is the invostment adiractive? Why or why not? Not peresent value of expansion Is the investment attractive? Why? Tho dxpansiten is projoct because is NPV is Requirement 2. Assume the expansion has no residuat value, What is the projoct's NPV? is the investment stel attractive? Why or why not? Caiculate the proyect's NPV (Round your answer to the aenarest whoto dollar Use parenthesos or a minus sign for a negative net peesent vake ? Net piesent vake of exparsion : ti tfo imvostmont attractive? Why? Witruut a residual value, the expansion because of the project's NFV Data table This tes Present Value of Annuity of $1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline Periods & 1% & 2% & 3% & 4% & 5% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% \\ \hline Period 1 & 0.990 & 0.980 & 0971 & 10.962 & 0.952 & 0.943 & 30.926 & 60.909 & 90.893 & 0.877 & 0.862 & 0.847 & 0.833 \\ \hline Period 2 & 1970 & 1942 & 1.913 & 1.886 & 1.859 & 1.833 & 1.783 & 31.736 & 1.690 & 1.647 & 1605 & 1.566 & 1.528 \\ \hline Period 3 & 2.941 & 2.884 & 2.829 & 9. 2775 & 2.723 & 2.67 & 32.577 & 72.487 & 72.402 & 2.322 & 2.246 & 3. 2.174 & 2.106 \\ \hline Period 4 & 3902 & 3.808 & 3.717 & 3630 & 3.546 & 3.465 & 53.312 & 23.170 & 3.037 & 2.914 & 2.798 & 2.690 & 2.589 \\ \hline Period 5 & 4.853 & 4713 & 4.580 & 4.452 & 4.329 & 4212 & 23993 & \begin{tabular}{l|l} 3 & 3791 \end{tabular} & 3.605 & 3.433 & 3.274 & 3127 & 2.991 \\ \hline Period 6 & 5795 & 5.601 & 5.417 & 5.242 & 5.076 & 4.917 & 7. 4.623 & \begin{tabular}{l|l} 3 & 4355 \end{tabular} & 54.111 & 3.889 & 3.685 & 3,498 & 3.326 \\ \hline od 7 & 76.728 & 6.472 & 6230 & \begin{tabular}{ll} 0 & 6.002 \end{tabular} & 5786 & 5.582 & 25.206 & 6.4 .868 & 8.564 & 4.288 & 4.039 & 3.812 & 3.605 \\ \hline Period 8 & 8. 7.652 & 7325 & 7.020 & \begin{tabular}{ll} 0 & 6.733 \end{tabular} & 6463 & 6.210 & 55.747 & 75.335 & \begin{tabular}{l|l} 5 & 4.968 \end{tabular} & 4.639 & 4.344 & 4.078 & 3.837 \\ \hline Period 9 & 8.566 & 8.162 & 7786 & \begin{tabular}{ll} 6 & 7.435 \\ \end{tabular} & 7.108 & 6802 & 26247 & 75.759 & \begin{tabular}{lll} 9 & 5328 \end{tabular} & 4.946 & 4.607 & 4.303 & 4.031 \\ \hline \begin{tabular}{l} Period \\ 10 \end{tabular} & 9471 & 8.983 & 8.530 & & 7722 & 7360 & 6.710 & 06.145 & 55.650 & 5216 & 4.833 & 4.494 & 4.192 \\ \hline \begin{tabular}{l} Period \\ 11 \end{tabular} & 10.368 & 9.787 & 9.253 & 38.760 & 8.306 & 7.887 & 7.139 & \begin{tabular}{l} 9.495 \end{tabular} & 55.938 & \begin{tabular}{l|l} 3.453 \end{tabular} & 5.029 & 4.656 & 4.327 \\ \hline \begin{tabular}{l} Period \\ 12 \end{tabular} & 11255 & 510.57 & 59.954 & 49.385 & 8.863 & 8384 & 4.536 & 6.814 & 46.194 & 5.660 & 5197 & 4.793 & 4.439 \\ \hline \begin{tabular}{l} Period \\ 13 \end{tabular} & 12.134 & 1.348 & 810.63 & 59986 & 9.394 & 8.853 & \begin{tabular}{ll} 3 & 7.904 \end{tabular} & 47.103 & 36.424 & 4.842 & 5.342 & 4.910 & 4533 \\ \hline \begin{tabular}{l} Period \\ 14 \end{tabular} & 13.00 & & 11.29 & 10.5 & 3 9.899 & 9.295 & 58.244 & 47367 & 6.628 & 6.002 & 5.468 & 5.008 & 4.611 \\ \hline \begin{tabular}{l} Period \\ 15 \end{tabular} & 13.865 & & & 1811.11 & 810.380 & 0.9 .712 & 8.559 & 97.606 & 6.6 .811 & 6.142 & 5.575 & 5.092 & 4,675 \\ \hline \begin{tabular}{l} Period \\ 20 \end{tabular} & & & 87 & 713.5 & 012.462 & 211.47 & 09818 & \begin{tabular}{l|l} 8 & 8.514 \end{tabular} & 47.469 & 96.623 & 5.92 & 5.353 & 4870 \\ \hline \begin{tabular}{l} Period \\ 25 \end{tabular} & 02 & & & 1315.622 & 214094 & 412783 & 1310.675 & 159.077 & 77.843 & \begin{tabular}{l|l} 3 & 6.87 \end{tabular} & 6.09 & 5.46 & 4.948 \\ \hline \begin{tabular}{l} Period \\ 30 \end{tabular} & & & & & 372 & 21376 & 511.25 & 8.9 .427 & 78.055 & 57.003 & 6.17 & 5.51 & 4.979 \\ \hline \begin{tabular}{l} Period \\ 40 \end{tabular} & & & & 1519: & 3) 17.15 & 915.04 & 611.92 & 5.5 .779 & \begin{tabular}{ll} 9 & 8244 \end{tabular} & 4.105 & 6.233 & 5.648 & 4.997 \\ \hline \end{tabular} Print Done Reference \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{14}{|c|}{ Future Value of Annuity of \$1 } \\ \hline Periods & 1% & 2% & 3% & 4% & 5% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% \\ \hline Period 1 & 1.000 & 1.000 & 1.000 & 1.000 & 1000 & 1000 & 1000 & 1.000 & 1.000 & 1.000 & 1000 & 1.000 & 1000 \\ \hline Period 2 & 2.010 & 2.020 & 2.030 & 2.040 & 2050 & 2060 & 2080 & 2.100 & 2.120 & 2.140 & 2160 & 2.180 & 2200 \\ \hline Period 3 & 3.030 & 3.060 & 3.091 & 3.122 & 3.153 & 3.184 & 3.246 & 3.310 & 3.374 & 3.440 & 3.506 & 3.572 & 3.640 \\ \hline Period 4 & 4.060 & 4.122 & 4.184 & 4.246 & 4310 & 4.375 & 4.506 & 4.641 & 4.779 & 4921 & 5.066 & 5215 & 5.368 \\ \hline Peri & 5.101 & 5.204 & 5.309 & 5.416 & 5.526 & 5.637 & 5.867 & 6.105 & 6.353 & 6.610 & 6877 & 7154 & 7.442 \\ \hline Per & 6.152 & 6308 & 6.468 & 6.633 & 6802 & 6.975 & 7.336 & 7.716 & 8115 & 8.536 & 8977 & 9.442 & 9.930 \\ \hline Per & 7.214 & 7.434 & 7662 & 7.898 & 8142 & 8 & 3 & & 10.089 & 10.730 & 11.414 & 12.142 & 12916 \\ \hline & 8.286 & 8.583 & 8.892 & 9214 & 9549 & 9.897 & 10.637 & 11.436 & 12.300 & 13.233 & 14240 & 15.327 & 16.499 \\ \hline Peri & 9.369 & 9.755 & 10.159 & 10.583 & 11.027 & 11491 & 12488 & 13.579 & 14776 & 16.085 & 17.519 & 19.086 & 99 \\ \hline Peri & 10.462 & 10.950 & 11.464 & 12.006 & 12.578 & 13.181 & \begin{tabular}{r} 12.400 \\ 14.487 \end{tabular} & 15.937 & 17549 & \begin{tabular}{l} 19.337 \end{tabular} & 21.321 & 23.521 & 25.959 \\ \hline Peri & 11.567 & 12.169 & 12.808 & 13.486 & 14.207 & 14.972 & 16.645 & 18.531 & 20.655 & 23.045 & 25 & 28.755 & 32.150 \\ \hline & & & 14.192 & 15.026 & 15.917 & 16.870 & 18.977 & 21.384 & 24.133 & 27,271 & 30.850 & 34.931 & 581 \\ \hline Peri & & 14 & 15618 & 16.627 & 17.713 & 18.882 & 21.495 & 24.523 & 28.029 & 32.089 & 36.786 & 42.219 & 48.497 \\ \hline & 1 & 15 & 17.086 & 18292 & 19.599 & 21.015 & 24.215 & 27975 & 32.393 & 37.581 & 43.672 & 50.818 & 59.196 \\ \hline Pe & & & & 20.024 & & 76 & 27.152 & 31.772 & 37.280 & 43.842 & 51.660 & 60.965 & 72.035 \\ \hline Peri & 22019 & 24.297 & 26 & 29.778 & 33 & 38 & 45.762 & 57.275 & 2052 & 91.025 & 115,380 & 146.628 & 38 \\ \hline & & & & & 27 & & 73.106 & 98 & & 181.871 & 214 & & \\ \hline & & & & 56 & 66.439 & 79.058 & 113.28 & 1644 & 241.33 & 356.787 & 530.312 & 790.948 & 887 \\ \hline & & & & & & & & & & & & & \\ \hline \end{tabular} Print Done \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline & & & & & & Future & Value o & of $1 & & & & & \\ \hline Periods & 1% & 2% & 3% & 4% & 5% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% \\ \hline Period 1 & 1.010 & 1.020 & 1.030 & 1.040 & 1.050 & 1.060 & 1.080 & 1.100 & 1.120 & 1.140 & 1.160 & 1.180 & 1.200 \\ \hline Period 2 & 1.020 & 1.040 & 1.061 & 1.082 & 1.103 & 1.124 & 1.166 & 1.210 & 1.254 & 1.300 & 1.346 & 1.392 & 1.440 \\ \hline Period 3 & 1.030 & 1.061 & 1.093 & 1.125 & 1.158 & 1.191 & 1.260 & 1.331 & 1.405 & 1.482 & 1.561 & 1.643 & 1.728 \\ \hline Period 4 & 1.041 & 1.082 & 1.126 & 1.170 & 1.216 & 1.262 & 1.360 & 1.464 & 1.574 & 1.689 & 1.811 & 1.939 & 2.074 \\ \hline Period 5 & 1.051 & 1.104 & 1.159 & 1217 & 1.276 & 1.338 & 1.469 & 1.611 & 1.762 & 1.925 & 2.100 & 2288 & 2488 \\ \hline Period 6 & 1.062 & 1.126 & 1.194 & 1.265 & 1.340 & 1.419 & 1.587 & 1.772 & 1.974 & 2.195 & 2.436 & 2.700 & 2986 \\ \hline Period 7 & 1.072 & 1.149 & 1.230 & 1.316 & 1.407 & 1.504 & 1.714 & 1.949 & 2211 & 2.502 & 2.826 & 3.185 & 3.583 \\ \hline Period 8 & 1.083 & 1.172 & 1.267 & 1.369 & 1.477 & 1.594 & 1.851 & 2.144 & 2.476 & 2.853 & 3278 & 3.759 & 4.300 \\ \hline Period 9 & 1.094 & 1.195 & 1.305 & 1.423 & 1.551 & 1.689 & 1.999 & 2.358 & 2.773 & 3252 & 3.803 & 4.435 & 5.160 \\ \hline \begin{tabular}{l} Period \\ 10 \end{tabular} & 1.105 & 1.219 & 1.344 & 1.480 & 1.629 & 1.791 & 2.159 & 2.594 & 3.106 & 3.707 & 4.411 & 5.234 & 6.192 \\ \hline \begin{tabular}{l} Period \\ 11 \end{tabular} & 1.116 & 1243 & 1.384 & 1.539 & 1.710 & 1.898 & 2.332 & 2.853 & 3.479 & 4.226 & 5.117 & 6.176 & 7.430 \\ \hline \begin{tabular}{l} Period \\ 12 \end{tabular} & 1.127 & 1.268 & 1.426 & 1.601 & 1.796 & 2.012 & 2.518 & 3.138 & 3.896 & 4.818 & 5.936 & 7.288 & 8.916 \\ \hline \begin{tabular}{l} Period \\ 13 \end{tabular} & 1.138 & 1.294 & 1.469 & 1.665 & 1.886 & 2.133 & 2.720 & 3.452 & 4.363 & 5.492 & 6.886 & 8.599 & 10.699 \\ \hline \begin{tabular}{l} Period \\ 14 \end{tabular} & 1.149 & 1.319 & 1.513 & 1.732 & 1.980 & 2.261 & 2.937 & 3.797 & 4.887 & 6.261 & 7.988 & 10.147 & 12.839 \\ \hline \begin{tabular}{l} Period \\ 15 \end{tabular} & 1.161 & 1.346 & 1.558 & 1.801 & 2.079 & 2.397 & 3.172 & 4.177 & 5.474 & 7.138 & 9.266 & 11.974 & 15.407 \\ \hline \begin{tabular}{l} Period \\ 20 \end{tabular} & 1220 & 1.486 & 1.806 & 2.191 & 2.653 & 3.207 & 4.661 & . 727 & 9.646 & 13.743 & 19.461 & 27.393 & 38.338 \\ \hline \begin{tabular}{l} Period \\ 25 \end{tabular} & 1.282 & 1.641 & 2.094 & 2.666 & 3.386 & 4.292 & 6.848 & 10.835 & 17.000 & 26.462 & 40.874 & 62.669 & 95.396 \\ \hline \begin{tabular}{l} Period \\ 30 \end{tabular} & 1.348 & 1.811 & 2.427 & 3.243 & 4.322 & 5.743 & 10.063 & 17.449 & 29.960 & 50.950 & 85.850 & 143.371 & 237.376 \\ \hline \begin{tabular}{l} Period \\ 40 \end{tabular} & 1.489 & 2.208 & 3.262 & 4.801 & 7.040 & 10.286 & 21.725 & 45.259 & 93.05 & 188.88 & 378.72 & 750.37 & 1,469.772 \\ \hline \end{tabular} Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Theodore Christensen, David Cottrell, Cassy Budd

13th Edition

1260772136, 9781260772135

More Books

Students also viewed these Accounting questions

Question

What are the eight types of intelligence? (p. 65)

Answered: 1 week ago