III Homework: 7-1 My AccountingLab Homework: Chapter 21 Question 5, E21-28 (similar to Part 16 HW Score: 0%, 0 of 45 points Points: 0 of 0 Save Lavorty Clinic plans to purchase a new con machine for us New York only. The machine costs $225.000 and is expected to have a wee of 10 years, with a terminal disposto $1.000 g cash operating costs are expected to be $18.500 per year. However, additional working capital is needed to the machine ning the working capital must continually be replaced, comment of $39.000 reeds to be marted at all times, but this investment is fully recoverable (w becashed the end of the Lavorty Canicreuredite a retomis 10. Ignore comes in you analysis. Assume all th flows occur atyw.and except for initial investment amount Lavorty Clinic to train depreciation for its machine Preset Valea 51 Pret Value of Anculo 1 e Eure Vue of 51. Funto1 Read the requirements Requirement 1. Calcune presentan (Use factors to throw docmai places XXX and use a minus restorante et protest values. Enter the protest value of the Founded to the poorest wholo dollar) The net present Values DEM LULUS LWT sessan elne depreciation for its machines CHULE Inn --- Requirements (Us 1. Calculate net present value. 2. Calculate internal rate of return. 3. Calculate accrual accounting rate of return based on net initial investment. 4. Calculate accrual accounting rate of return based on average investment. 5. You have the authority to make the purchase decision. Why might you be reluctant to base your decision on the DCF methods? Reference Prosent Value of $1 Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% Period 1 0.930 0.962 20% 22% 24% 0.943 26% 0.926 28% 50% 32% 0.0090.893 0.877 40 Peno Period 2 0.981 0.925 0.002 0.847 0.833 0.820 0.806 0794 0.890 0.857 0781 0.760 0.826 0.797 0.769 0.7680714 Period 0.743 0.718 Period 3 0.942 0.889 0.604 0.672 0.650 0.630 0.610 0.592 0.840 0.794 0.751 0.712 0.675 0574 0510 Period 0.641 0.009 0.570 0.551 0.524 0.500 0.477 0.455 0.435 Period 4 0.924 0.855 0.792 0364 Period 0.735 0,883 0.636 0.592 0.552 0.510 0.482 0.451 0.423 0.373 0.397 Period 5 0.906 0.822 0.747 0.681 0.821 0.350 0.329 020 Period 0.567 0.519 0.470 0.437 0.402 0.370 0.341 0.315 0 201 0200 0250 0.100 Period Period 6 0.888 0.790 0.705 0.630 0.564 0.507 0.456 0410 0.370 0335 0.300 0.275 0250 0.227 0207 0.18 0.133 Period Period 7 0.871 0.760 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.249 0.222 0.198 0.1780 150 0.10 0.096 Period Period 8 0.853 0.731 0.627 0.540 0.467 0.404 0.351 0.305 0.256 0233 0204 0.170 0.157 0.139 0.123 0.108 0.068 Period Period 9 0.837 0.703 0.502 0.500 0424 0.361 0.308 0.263 0.225 0.194 0.167 0.144 0.125 0.100 0.004 00 0043 Period Period 10 0.820 0.676 0.558 0.463 0388 0.322 0.1300227 0.191 0.162 0.137 0.116 0.099 0.08 0 073 0.02 0.00 Period Period 11 0.804 0.650 0.527 0.429 0.350 0.287 0237 0.195 0.162 0.135 0.112 0094 0.079 0068 0.050 0.047 0.025 Period 0.497 Period 12 0.78 0.625 0.397 0.319 0.257 0.208 0.168 137 0.112 0092 0.076 0062 0043 0.052 0.000 018 Period PARA Lininh Onlar 94.90 leimaal HALMERA Ve Reference me Period 13 0.773 0.601 0.409 0,368 0.290 0.229 0.162 0.145 0.110 0.093 0.075 0.061 0.050 0010 0.033 0.027 0.013 Period 13 Period 14 0.758 0.577 0.442 0340 0.283 0.205 0.160 0.125 0.000 0.078 0.062 0040 0.030 0.032 0.025 0.021 0.009 Period 14 Period 15 0.743 0.555 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.051 0010 0.031 0.025 0.020 0.0160.006 Period 15 Period 16 0.728 0.534 0.394 0.292 0.218 0.163 0.123 0.093 0.071 0.054 0.042 0032 0.025 0,019 0015 0.0120.005 Period 16 Period 17 0.714 0.513 0.371 0270 0.198 0.146 0.108 0.000 0.00 0.015 0.034 0.026 0.020 0.015 0.012 0.000 0.003 Period 17 Period 18 0 700 0.494 0.350 0.250 0.180 0.130 0,095 0,0690051 0.038 0.028 0.021 0.0160.012 0.009 0.007 0.002 Period 18 Period 19 0.886 0.475 0331 0.232 0.164 0.116 0.083 0.060 0.043 0.031 0.023 0,017 0.012 0.000 0.007 0.005 0.002 Period 19 Period 20 0.673 0.458 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0,026 0.019 0.014 0.010 0.007 0.005 0.004 0.001 Period 20 Period 21 0.660 0.439 0.294 0.199 0.135 0.093 0.064 0.044 0031 0.022 0.015 0.011 0.008 0.005 0.0040003 0.001 Period 21 Period 22 0.647 0.422 0.278 0.184 0.123 0.083 0.056 0.038 0.026 0.018 0.013 0.009 0.003 0.004 0.003 0.002 0.001 Period 22 Period 23 0.634 0.408 0.262 0.170 0.074 0.049 0.033 0.022 0.015 0.010 0.007 0.005 0.003 0.002 0.002 0.000 Period 23 Period 24 0.622 0,390 0.247 0.158 0.102 0.066 0.043 0.028 0.019 0.013 0.008 0.008 0.004 0.003 0.02 0.001 0.000 Period 24 Period 25 0.610 0.375 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.007 0.005 0.003 0.002 0.001 0.001 0.000 Period 25 Period 26 0.598 0.361 0.220 0.135 0.084 0.053 0.033 0.021 0.014 0.009 0.006 0.004 0.002 0.002 0.001 0.001 0.000 Period 26 D7 A E M. 1962 ME 0.112 Galeri Reference Period 19 0.686 0.475 0.331 0232 Period 20 0,673 0.456 0.312 0215 Period 21 0.660 0.439 0.294 0.199 Period 22 0.647 0.422 0.278 0.184 Period 23 0.634 0.406 0.262 0.170 Period 24 0.622 0.390 0.247 0.158 Period 25 0.610 0.375 0233 0.146 Period 26 0.598 0.361 0.220 0.135 Period 27 0.588 0.347 0.207 0.125 Period 28 0.574 0.333 0.196 0.116 Period 29 0.563 0.321 0.185 0.107 Period 30 0.552 0.308 0.174 0 099 Period 35 0.500 0.253 0.130 0.068 Period 40 0.453 0.208 0.097 0.046 0.164 0.116 0.083 0.060 0.149 0.104 0.073 0.051 0.135 0.093 0.064 0.044 0:123 0.083 0.056 0.038 0.112 0.074 0.049 0.033 0.102 0.006 0.043 0.028 0.092 0.059 0.038 0.024 0.084 0.053 0.033 0.021 0.078 0.047 0.029 0.018 0.069 0.042 0.026 0.016 0.063 0.037 0.022 0.014 0.057 0.033 0.020 0.012 0.036 0.019 0.010 0,006 0.022 0.011 0.005 0.003 0.013 0.037 0.031 0.020 0.022 0019 0.016 0.014 0.011 0.010 0.008 0.007 0.003 0.001 0.031 0.023 0.017 0.012 0.009 0.007 0.005 0.002 Period 19 0.026 0.019 0.014 0.010 0.007 0.005 0.004 0.001 Period 20 0.022 0.015 0.011 0.008 0.006 0.004 0.003 0.001 Period 21 0.018 0.013 0.009 0.006 0.004 0.003 0.002 0.001 Period 22 0.015 0.010 0.007 0.005 0.003 0.002 0.002 0.000 Period 23 0.013 0.008 0.000 0.004 0.003 0.002 0.001 0.000 Period 24 0.010 0.007 0.005 0.003 0.002 0.001 0.001 0.000 Period 25 0.009 0.006 0.004 0.002 0.002 0.001 0.001 0.000 Period 26 0.005 0.003 0.002 0.001 0.001 0.001 0.000 Period 27 0.000 0.004 0.002 0.002 0.001 0.001 0.000 0.000 Period 28 0.005 0.003 0.002 0.001 0.001 0.000 0.000 0.000 Period 29 0.004 0003 0.002 0.001 0.001 0.000 0.000 0.000 Period 30 0.002 0.001 0.001 0.000 0.000 0.000 0.000 0.000 Period 35 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Period 40 0.007 Reference rosent Value of Annuity of $1.00 in Arrats Periods 2% 4% 6% 8% Period 1 0,060 0.962 0.943 0.926 Period 2 1.942 1.836 1.833 1.783 Period 3 2.884 2.775 2.673 2577 Period 4 3,808 3.630 3.465 3.312 Period 5 4,713 4.452 4,212 3.993 Period 6 6,601 5.242 4.917 4.623 Period 7 6,472 6.002 5.582 5.206 Period 8 7.325 6.733 6.210 5.747 Period 9 8.102 7.435 6.802 6.247 Period 10 8.983 8.111 7.360 6.710 Period 11 9.787 8.760 7 887 7.139 Period 12 10.575 9.385 8.384 7.536 10% 12% 0.909 0.893 1.736 1.000 2.487 2.402 3.170 3,037 3.791 3.005 4355 4,111 4.868 4.564 5 335 4.968 5.759 5.328 6.145 5.650 6.495 5.938 6.814 6.194 14% 0.877 1.647 2322 2.914 3.433 3.889 4.238 4.639 4946 5.210 5.453 5.660 16% OBZ 1005 2.246 2.700 3274 3.685 4.030 4.344 4807 4833 5.029 5.197 18% 0.847 1.500 2.174 2.600 3.127 3.498 3.812 4078 4.303 4.494 4.656 4.793 20% 22% 24% 0833 0320 O BOB 1528 1492 1457 2.100 2042 1.981 2589 2404 2401 2.991 2.884 2.745 3.326 3.167 3,020 3.605 3.416 3.242 3.837 3,619 3.421 4.031 3.786 3.586 4.192 3923 3.682 4.327 4035 3.776 4,439 4.127 3851 26%28% 0.794 0.781 1.424 1 302 1.923 1868 2.320 2.241 2.635 2532 2.885 2.750 3.083 2937 3.241 3.076 3386 3.184 3465 3.200 3.543 3.335 3.606 3.387 30% 32% 40% Periods 0.700 0758 0.714 Period 1 1.361 1.331 1.224 Period 2 1 818 1.760 1.580 Period 3 2.106 2006 1849 Period 4 2436 2.345 2036 Periods 2.643 2544 2.168 Period 2 802 2677 2.263 Period 7 2.925 2786 2331 Period 8 3.010 2.868 2379 Period 9 3.092 2.930 2.414 Period 10 3.147 2.978 2.438 Period 11 3.190 3.013 2456 Period 12 LOLU UUUU JOLLUT MULUI UMPLU, needs to be maintained at all times, but this investment is fully recoverable (will be cashed in the end of the useful e Laverty inie's required rate of returns to ignore comes in you chocolandoninitiativasimetamineralina ations interestina -X Reference 'eriod 13 11.348 9.986 8.853 7.904 7.103 6.424 5.842 feriod 14 12.106 10.563 9.295 8.244 7.367 8.628 6.002 Period 15 12 849 11.118 9.712 8550 7606 6,811 6.142 Period 16 13.578 11.052 10.108 8.851 7824 6.974 6205 Period 17 14.292 12 166 10.477 9.122 8.022 7.120 6373 Period 18 14.992 12.659 10.828 9.372 8.201 7.250 6.467 Period 19 15 678 13.134 11.158 9.504 8.365 7.366 6.550 Period 20 16 351 13.590 11470 9.818 8.514 7.469 3823 Seriod 21 17 011 14.020 11 784 10.017 8649 7562 6.687 Period 22 17.658 14 451 12.042 10 201 8.772 7.645 6.743 Period 23 18 292 14857 12.303 10.371 8.883 7.718 6.792 Period 24 18.914 15.247 12.550 10.520 8.985 7.784 6.835 Period 25 19.523 15.622 12.783 10.675 0.077 7.843 6,873 feriod 26 20.121 15.983 13.003 10.810 9161 7896 6.900 in 7277122 11025 017 7043 RO 5.342 4.910 5.468 5.008 5.575 5,092 5668 5.162 5.749 5.222 5.818 5273 5.877 5.316 5.929 5.353 5.973 5.384 6011 5.410 6044 5.432 6.073 5451 8007 5.487 6.118 5.430 5402 4533 4.203 4611 4.205 4675 4 315 4.730 4.357 4.775 4391 4.812 4410 4843 4442 4870 4460 4891 4.478 4900 4.488 4925 4.499 4.937 4507 4.948 4.514 4956 4.520 A 04 24 3.012 3656 3.962 3.095 4.001 3726 4.033 3.751 4099 3.771 4.080 3.786 4.097 3.790 4.110 3.808 4.121 3.816 4130 3.822 4.137 3.827 4.143 3831 4.147 3.834 4151 3837 415 1 3.427 3223 3040 2.400 Period 13 - 3.450 3249 3.061 2478 Period 14 3.483 3268 3.076 2484 Period 15 3.503 3283 3.088 2480 Period 10 3.518 3.295 3097 2492 Period 11 3529 3.300 3 104 2494 Period 10 3539 3.311 3 100 2496 Period 19 3566 3.310 3113 2497 Period 20 3,551 3320 3.116 2498 Period 21 3.556 3.323 3.118 2490 Period 22 3.550 3.325 3.120 2.499 Period 23 3.502 3.327 3.121 2499 Period 24 3584 3.122 2499 Period 25 3586 3330 3.123 2.500 Period 26 BEAT Merid 37 3.329 wer Print Done 2:27 PM 81 6 01 Simom ULIUS or Income taxes in your taip Reference - X 'eriod 20 18.351 13 500 11.470 9,818 8.514 'eriod 21 17.011 14.029 11.764 10 017 8 649 Period 22 17 658 14.451 12.042 10.201 8.772 Period 23 18 292 14857 12.303 10.371 8.883 feriod 24 18.914 15 247 12.550 10.529 8.985 Period 25 19.523 15.622 12.783 106759077 Period 26 20.121 15.963 13,003 10.810 9.181 Period 27 20.707 10.330 13 211 10.935 9237 eriod 28 21 281 16.663 13.400 11051 9.307 feriod 29 21.844 16.984 13.501 11.158 9.370 feriod 30 22 396 17.292 13.785 11 258 9.427 Period 35 24.999 18.685 14.498 11,655 9.644 Period 40 27.355 19.793 15.046 11.925 0.779 Payments for ricops at the end of each period 7.469 6.623 7582 8.687 7.645 6.743 7.718 6.792 7.784 6.835 7.843 6.873 7806 6.905 7943 6.935 7.984 8.981 8.022 6.983 8055 7003 8.178 7.070 7.105 5.929 5.973 6.011 8.044 6,073 6.097 8.118 6.138 8.152 5.106 6.177 6.215 6.233 5353 5384 5.410 5.432 5451 5467 54480 5.492 5 502 5510 5.517 5.539 5.548 4870 4291 4.900 4.925 4.937 4965 4956 4.964 4970 4.975 4979 4.992 4.097 4460 4476 6.488 4.490 4.507 4514 4.520 4.324 4.528 4.531 4.534 4541 4544 4110 4.121 4.130 4.137 4143 4.147 4.151 4.154 4.157 150 4.100 4.184 4.100 3.80B 3.546 3.316 3.113 2497 Period 20 3.818 3.561 3.320 3.116 249 Period 21 3.822 3.556 3.323 3.170 2498 Period 22 3827 3.559 3.325 3.120 2 499 Period 23 3.831 3562 3.327 3.121 2499 Period 24 3834 3.564 3.320 3.122 2499 Period 25 3.837 3.506 3.330 3.123 2500 Period 26 3.839 3.567 3 331 3.123 2500 Period 27 38.00 3.568 3331 3.124 2.500 Period 28 3811 3.569 3.332 3.124 2500 Period 29 3 842 3580 3.332 3 124 2.500 Period 30 3.815 3571 3333 3125 2500 Period 35 3.846 3571 3.333 3125 2500 Period 40 8 244 wer Print Done 9 227 PM 47112022 Reference 18% 321 1120 2300 3.00 4007 Compound Amount of $1.00 (The Future Value of $1.00) Periods 2% 4% 6% 8% 10% 12% Period 1 1.020 1.040 1.060 1,080 1.100 1.120 Period 2 1.040 1.082 1.124 1.166 1.210 1.254 Period 3 1.081 1.125 1.191 1.260 1.331 1.405 Period 4 1.082 1.170 1.262 1.360 1.464 1.574 Period 5 1.104 1.217 1.338 1.489 1.611 1.762 Period 6 1.126 1.265 1.419 1.587 1.772 1.974 Period 7 1.149 1.316 1.504 1.714 1.949 2211 Period 8 1.172 1.369 1.594 1 851 2.144 2.476 Period 9 1.195 1.423 1.689 1.999 2 358 2.773 Period 10 1.219 1.480 1.791 2.159 2.594 3.106 Period 11 1.243 1,539 1 898 2332 2.853 3,479 Period 12 1.268 1.601 2012 2518 3.138 3.898 14% 1.140 1.300 1.482 1889 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 16% 1.160 1.346 1.561 1.811 2.100 2438 2826 3.278 3803 4.411 5.117 5.936 1.180 1.392 1.643 1.939 2288 2.700 3.185 3.759 4435 5.234 6.176 7.288 20% 1.200 1.440 1.728 2074 2488 2.986 3.583 4300 5.180 6.182 7.430 8.916 22% 1 220 1.488 1.816 2.215 2.703 3.297 4.023 4908 5.987 7.305 8.912 10.872 24% 1 240 1538 1.907 2.364 2.932 3.635 4508 5590 6.931 8.504 10.657 13.215 26% 1.200 1588 2.000 2520 3.170 4.002 5042 353 8.005 10 086 12.700 16.012 28% 1.280 1838 2097 2.884 3430 4398 5829 7.200 9223 11 806 15 112 19.343 30% 1 300 1690 2. 197 2.850 3713 4827 6275 8.157 10 804 13.786 17902 6.00 9.217 10 000 21.100 27 Reference Period 12 1.260 1.601 2012 2518 3.138 3890 4818 5.836 7283 Period 13 1.294 1.665 2.133 2.720 3.452 4.363 5.402 6.836 3.599 Period 14 1.319 1.732 2201 2.937 3.797 4.887 0.261 7.988 10.147 Period 15 1.346 1.801 2.397 3.172 4.177 5.474 7.138 9.200 11.974 Period 18 1.373 1.873 2540 3.426 4.595 0.130 137 10.748 14.120 Period 17 1.400 1.948 2893 3.700 5054 6.800 9.276 12.408 16,672 Period 18 1428 2026 2.854 3.990 5.560 7600 10.575 14.463 19,673 Period 19 1 457 2.107 3026 4.316 6.116 8,613 12.050 16.777 23214 Period 20 1.486 2.191 3.207 4.661 6.727 9.840 13.743 19.401 27.393 Period 21 1516 2.279 3.400 5.034 7.400 10.804 15.668 22 574 32.324 Period 22 1 546 2370 3.604 5.437 8.140 12 100 17.861 26.186 38.142 Period 23 1.577 2.465 3.820 5.871 8.954 13 552 20.362 30378 45,008 Period 24 1.608 2.563 4.049 8.341 9.850 15.179 23.212 35 236 53.100 Period 25 1.641 2686 4.292 6.848 10.835 17.000 26.462 40 874 02.800 Period 26 1,673 2.772 4,549 7396 11.918 19.040 30 107 47 414 73.949 8916 10872 13215 10.600 13 264 10 386 12830 16.12 20 319 15.407 10.742 25 100 18.488 24.066 31.243 22106 29384 38741 26.623 35.840 18030 31948 43736 59.568 38338 53.358 73.864 48.000 05.096 91.592 55.200 79.418 113 574 66.247 96.889 140831 79.497 118.205 174 831 95 396 144 210 216.542 114 475 175 936 258 512 15012 20.175 25421 32030 40.350 50.851 64072 80 731 101721 128 100 161.492 203.480 256385 323.045 407,037 19.343 24.750 31.001 40.566 51.923 06 461 85071 108 800 130380 178.400 228.380 292 300 374144 478.905 812 998 23.29 30.288 30.374 51.150 60.542 86,504 112455 140.192 190.050 247.005 321 184 417 530 542 801 705641 917333 27983 35.937 48.757 4350 4054 112130 148.024 105 301 257 910 340.449 4393 563.199 783.023 1033.500 1354339 op the machine running eliciently. The working capital must corabeced seamet 3.000 Saving 10 at all times, but this investment is fully recoverable (will be cashed") at the end of the useful Laverly Cincs required rate of sun is to ignore income an you Bosh definitie Reference Period 19 1.457 2.107 3.026 4.316 6.116 8613 12.056 16.777 23.214 Period 20 1.486 2.191 3.207 4.661 31.948 43736 50.568 B0731 108.80 140192 8.727 9.646 195391 13.743 19.461 27.393 38 338 53.350 73.864 139 380 101721 190 Period 21 1.516 2.279 3.400 257 918 5.034 7.400 10.804 15.668 22.574 32 324 45.005 65.000 91.592 128.169 178 400 247065 Period 22 1.546 2.370 3.604 5.437 8,140 12.100 17.861 26.180 38 142 55200 79.418 113.574 161492 228360 321184 449 393 Period 23 1.577 2.465 3.820 5.871 8.954 13.552 20 382 30.370 45.000 08.247 95889 140.831 203 480 292.300 417539 Period 24 1.000 2.563 4.049 0.341 9.850 15.179 23 212 35 236 53.100 79.497 116.205 174631 256.385 374.144 542 501 Period 25 1.641 2666 4.292 6.848 10.835 17 000 26.402 40.874 62650 95 390 144 210 216.542 323.045 48.905 705 541 Period 26 1.673 2.772 4.549 7.396 11.918 19.040 30.167 47414 73 949 114.475 175.93 268.512 407 037 612 900 917333 135039 Period 27 1.707 2.883 4.822 7.888 13.110 21 325 34 390 56.000 87.200 137377 214542332955 512867 784.638 1182533 TO Period 28 1.741 2.999 5.112 8.627 14.421 23 384 30 20 63.800 102.987 164.545 265 864 412 B 646.212 1004338 1550,293 227 224 Period 29 1.776 3.119 5.418 9.317 15.863 26.750 44.693 74.009 121.501 197.814 319 474 511,952 814228 1285 550 2015 3613137.935 Period 30 1,811 3.243 5.743 10.083 17.449 29.960 50 950 85 850 143371 237376 380.758 64 820 1025 927 1645 505 20 19 996 4142.675 Period 35 2.000 3.946 7.686 14.785 28.102 52 800 98 100 180 314 327.987 590.00 1053 402 1861.054 3258 1355053 911 97275601550217 Period 40 2.208 4.801 10.286 21.725 45 259 3.051 188 884 378 721 750 378 1400 772 2847 038 5455 013 10347.175 10125.680 38118805 wer O 15 OL 0 c 01 - 22 AI