Jackson Music is considering investing $750,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $90,000 per year for the next ten years. Assuming that Jackson Music uses an 8% hurdle rate, what is the net present value (NPV) of the studio investment? Is this a favorable investment? (Click the icon to view the present value of an annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value of an annuity table.) (Click the icon to view the future value table.) (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) The net present value of the studio investment is Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 0.990 1.970 2.941 3.902 4.853 Present Value of Annuity of $1 2% 3% 4% 5% 6% 8% 10% 12% 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 4.623 4.355 4.111 5.206 4.868 4.564 5.747 5.335 4.968 6.247 5.759 5.328 6.710 6.145 5.650 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4 192 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 Period 11 10.368 9.7879.253 8.760 8.306 7.887 Period 12 | 11.255 10.575 9.954 9.385 8.863 8.384 Period 13 12. 134 11.348 10.635 9.986 9.394 8.853 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 Period 15 | 13 865 | 12 940 | 11 038 11 118 | 10.390 | 9712 7.139 6.495 5.938 7.536 6.814 6.194 7.904 7.103 6.424 8.244 7.367 | 6.628 8.550 7606 6811 5.453 5.660 5.842 6.002 6142 5.029 5.197 5.342 5.468 5575 4.656 4.793 4.910 5.008 5.002 4.327 4.439 4.533 4.611 4675 Print Done Reference 5% Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 1% 1.000 2010 3.030 4.060 5.101 2% 1.000 2.020 3.060 4. 122 5.204 3% 1.000 2.030 3.091 4184 5.309 4% 1.000 2.040 3.122 4.246 5.416 Future Value of Annuity of $1 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 20% 1.000 2.200 3.640 5.368 7.442 6.152 6.308 7.214 7.434 8.286 8.583 9.369 9.755 10.462 10.950 6.468 6.633 6.802 7.662 7.898 8.142 8.892 9.214 9.549 10.159 10.583 11.027 11.464 12.006 12.578 6.975 8.394 9.897 11.491 13.181 7.336 8.923 10.637 12.488 14.487 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 Period 11 Period 12 Period 13 Period 14 Period 15 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 13.809 14.680 15.618 | 16.627 17.713 18.882 21.495 24.523 | 28.029 14.947 15.974 17.086 | 18.292 | 19.599 21.015 24.215 27.975 32.393 16. n97 17 293 18.599 20024 21 579 23 276 27 152 31 772 37 280 23.045 27.271 32.089 37.581 43 242 25.733 30.850 36.786 43.672 51 660 28.755 34.931 42.219 50.818 60065 32.150 39.581 48.497 59.196 72 0.35 Print Done Present Value of $1 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 5% 0.952 0.907 0.864 0.823 0.784 6% 0.943 0.890 0.840 0.792 0.747 8% 0.926 0.857 0.794 0.735 0.681 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 20% 0.833 0.694 0.579 0.482 0.402 Periods 1% 2% Period 1 0.990 0.980 Period 2 0.980 0.961 Period 3 0.971 0.942 Period 4 0.961 0.924 Period 5 0.951 0.906 Period 6 0.9420.888 Period 7 0.933 0.871 Period 8 0.923 0.853 Period 9 0.914 0.837 Period 10 0.905 0.820 Period 11 0.896 0.804 Period 12 0.887 0.788 Period 13 0.879 0.773 Period 14 0.870 0.758 Period 15 | 261 743 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.630 0.583 0.540 0.500 0.463 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 0.335 0.279 0.233 0.194 0.162 0.722 0.701 0.681 0.661 0642 0.650 0.625 0.601 0.577 555 0.585 0.557 0.530 0.505 0 481 0.527 0.497 0.469 0.442 n 417 0.429 0.397 0.368 0.340 0315 0.350 0.319 0.290 0.263 0 230 0.287 0.257 0.229 0.205 183 0.237 0.208 0.182 0.160 0140 0.195 0.168 0.145 0.125 0108 0.162 0.137 0.116 0.099 0084 0.135 0.112 0.093 0.078 0065