Joanette, Inc., is considering the purchase of a machine that would cost $530,000 and would last for 6 years, at the end of which, the machine would have a salvage value of $53,000. The machine would reduce labor and other costs by $113,000 per year. Additional working capital of $7,000 would be needed immediately, all of which would be recovered at the end of 6 years. The company requires a minimum pretax return of 12% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Required: Determine the net present value of the project. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.) present va EXHIBIT 14B-1 Present Value of $1; 1 ((1+r))" Periods 1 2 3 4 . 5 6 7 8 9 10 12 13 14 15 15 16 17 18 10 19 20 20 . 21 22 23 23 24 25 26 27 28 29 30 40 4% 5% 6% 7% 8% 9% 10% 11% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.855 0.823 0.792 0.763 0.735 0.708 0.683 win 0.659 0.822 0.784 0.747 0.713 0,681 0.650 0.621 0.593 0.790 0.746 0.705 0.6660.630 0 596 0.564 0.535 0.760 can 0.711 0.665 0.623 0.583 0.547 0.513 - 0.482 ce 0.731 0.677 0.627 0.582 0.540 0.502 0.467 wa 0.434 0.703 0.645 0.592 0.544 0.500 0.460 0.424 V 0.391 0,676 2014 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.650 0.585 vad 0.527 0.475 0.429 0.388 0.350 0.317 0.625 0.557 au 0.497 0.444 0.397 ad 0.356 0.319 0.286 an 0.601 0.530 20 0.469 0.415 0.368 0.326 wenn 0.290 0.258 0.577 0.505 aces 0.442 0.388 0.340 0.299 0.263 0.232 ca an 0.555 0.481 0.417 0.362 0.315 20 0.275 0.239 co 0.209 2017 ad an 0.534 0.458 0.394 0.3390.292 10 0.252 0.218 0.188 and 20 0215 . 0.513 0.436 20 0.371 0.317 0.270 0.231 0.198 0.170 20 ad ac ene 0.494 0.416 0.350 0.296 0.250 40 0.212 0.180 0.153 and h 0.475 0.396 0.277 0.331 AR ca 0.232 an 0.194 0.164 2 0.138 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 Fan vo 0.439 0.359 0.294 0.242 0.199 0.164 0.135 --- um 0.112 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0200 0.101 0.406 0.326 0.262 0.211 0120 0.170 0.138 0.112 0001 0.091 0.390 0 200 0.310 0 310 107 0.247 0.158 000 0.126 0.102 0.375 0.295 0.233 0.184 0.184 0.146 0.116 0.092 0.074 0.361 0.281 0.220 0.172 0.135 0.135 1106 0.106 0.084 0.066 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0,060 0.333 0.255 0.1960.150 0.116 0.090 0.090 0.069 0.054 0.321 0.243 0.185 0.141 0.107 | 0.082 0.063 0.048 0.308 0.231 0.174 0.174 0.131 0,099 0.075 0.057 0.044 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0,840 0.833 0.826 0.820 0.813 0.806 0.800 0.797 0.783 0.769 0.756 0.743 0.731 0.7180.706 (.694 0.683 0.672 0.661 0.650 0.640 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 ca 0.564 0.551 0.537 0.524 0.512 0.636 EOS 0.613 0.592 0572 0.552 0.534 0.516 0.499 0.482 were 0.467 0.451 0.437 0.423 0.410 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.249 0.235 12 0.263 el . 0.222 0.210 0.404 0.376 0.351 0.327 0.305 org 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 0.361 Feed 0.333 0.308 0.263 Vidrere 0.284 . 0.243 0.225 0.194 0.209 12 Vi 0.180 0.155 0.167 Vio 0.144 0.134 0.322 0.295 . 0.270 0.247 0.227 Sider 0.208 0.191 0.176 0.162 0.149 2010 24 0.126 0.137 were - 0.116 0.107 0.287 0.261 0.195 an 0.237 0.215 0.178 0.162 0.148 1 0.135 0.123 0.112 0.103 0.094 0.086 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 and 0.102 0.092 0.083 0.076 0.069 0.229 0.204 0.182 0.163 0.145 0.130 avec de 0.116 0.104 0.093 0.084 103 0.075 0.068 an 0.061 0.055 un 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.069 1 0.062 0.055 0.049 0.044 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0.035 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 10 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045 07 0.039 0.034 0.030 0.026 0.023 od 0.130 0.111 0.095 end 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 0.116 0.098 005 noci 0.08 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 ma 0.020 0.017 0.014 0.104 0.087 0.073 0.061 0.051 nac 0.043 0.037 0.031 mu 0.026 0.022 ca 0.019 0.016 0.014 0.012 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0.015 0.013 maca 0.009 0.011 0.083 need 0.068 med 0.056 0.046 0.038 0.032 mu 0.026 0.022 0.018 0.019 0.013 0.011 0.009 0.007 00 0.060 0.074 no 00 0.049 0022 0.040 0.033 0.027 0.022 LE 0.018 00 0.015 0.010 0.012 0.009 00 0.007 0.006 omo 0.066 0.053 0.043 0.035 0.023 0.019 0.015 0.013 0.010 0.008 00017 0.007 0.006 0.005 0.059 0.047 0.038 0.030 0.024 0.020 0.0160.013 0.010 0,009 wer 0.006 0.007 0.005 way 0.004 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.047 0.037 0.029 0.023 0.018 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 0.042 0.033 0.026 0.020 0.016 0.012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.037 0.029 0.022 0.017 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 0.033 0.026 0.020 0.015 0.012 0.009 0.007 0.005 0.004 | 0.003 0.003 0.002 0.002 0.001 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 EXHIBIT 14B-2 Present Value of an Annuity of $1 in Arrears; : 1 ((1 + r))" Periods 4% 6% 8% 9% 9 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.820 0.813 0.806 0.800 2 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 | 1.566 1547 1.528 1.509 1.492 1.474 | 1.457 1.440 3 2.775 2.723 2.673 2.624 2.577 2.531 | 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1.952 4 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.170 3.102 3.037 . 2.974 2.914 2.855 2.798 2.743 2.690 are 2.639 2.589 2.540 2.494 2.448 2.404 2.362 5 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 . 3.274 3.199 an 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 6 5.242 5.076 4.917 4.767 want 4.623 4.486 eta - re 4.355 4.231 4.111 were 3.998 3.889 3.784 3.685 3.589 3.498 3.410 since 3.326 3.245 3.167 3.092 7 3.020 2.951 6.002 5.786 * 5.582 5.389 5.206 5.033 . duro 4.868 4.712 4.564 4.423 4.288 4.160. 4.039 3.922 3.812 3.706 3.605 3.508 ince 3.416 3.327 8 3.242 3.161 6.733 6.463 6.210 5.971 5.747 5.535 inn an 5.146 5.335 ve 2014 4.968 4.799 4.639 4.487 4.207 ce 4.344 4.078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 9 7.435 7.108 6.802 6.515 were 6.247 5.995 vo 5.759 Vw 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 10 3.566 3.463 8.111 7.722 7.360 7.024 6.710 con ave 6.418 Ville 6.145 Vio 5.889 Valte 5.650 5.426 5.216 5.019 4.833 Video 4.659 4.494 4.339 4.192 4.054 3.923 3.682 3.571 3.799 11 8.760 were 8.306 TA 7.887 Droo 7.499 7.139 6.805 6.495 6.207 im 5.453 2012 5.938 5.687 wave 5.234 5.029 4.836 4.656 wa 4.486 4.327 4.035 3.902 4.177 3.656 12 3.776 9.385 8.863 ce 8.384 7.943 7.536 were 7.161 Tam 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 1200 3.985 3.851 3.725 13 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 6.1225.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 14 10.563 9.899 accede 9.295 8.745 8.244 7.786 7.367 6.982 an 6.628 6.302 6.002 5.724 5.468 5.229 water 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3.824 nare 15 11.118 10.380 9.712 9.108 8.061 are 8.559 7.606 7.191 inn wan 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 . 4.675 4.489 4.315 4.153 4.001 3.859 16 11.652 10.838 10.106 | 9.447 8.313 8.851 100 7.379 ** 7.824 Medle 6.974 6.604 200 6.265 5.954 5.668 5.405 5.1624.938 4.730 4.536 4.357 4.189 3.887 17 4.033 12.166 11.274 10.477 9.763 9.122 8.544 22 een 8.022 7.549 an 1100 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 w 4.576 4.391 4.219 4.059 3.910 29 18 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 7.250 2 6.840 6.467 ed ma ny 6.128 5.818 5.534 een Dance 5.273 5.033 4.812 4.608 4.419 4.243 4.080 19 3.928 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 end 7.366 2010 6.550 Tental 6.938 6.198 ce 5.877 5.584 5.316 5.070 4.843 4.635 4.442 | 4.263 od 4.097 20 3.942 mace 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7.469 7.025 6.623 6.259 5.929 5.628 5.3535.101 4.870 4.657 112 4.460 4.279 4.110 3.954 21 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 co 7.562 7.102 6.687 6.312 5.973 and 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 20 22 14.451 13.163 12.042 11.061 10.2019.442 8.772 8.176 7.645 7.170 6.743 6.743 6.359 6.011 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 23 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 8.266 7.7187.230 6.792 6.399 6.044 5.723 5.432 5.167 4.925 4.703 4,499 4.311 4.137 3.976 24 15.247 13.799 12.550 | 11.469 10.529 9.707 8.985 8.348 7.784 7.283 6.835 6.434 6.073 5.746 5.451 5.182 4.937 4.713 4.507 4.318 4.143 3.981 25 15.622 14.094 12.783 11.654 10.675 9.823 1.2217.17 9.077 8.422 12.04 Par 7.843 7.330 6.873 6.464 6.097 5.766 5,467 2N 5.195 4.948 war 4.721 4.514 4.323 4.147 26 3.985 15.983 14.375 13.003 | 11.826 10.810 | 9.929 | 9.161 170 8.488 22727 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.2064.956 4.728 4.328 4.520 wann 4.151 3.988 27 16.330 14.643 13.211 | 11.987 10.935 10.027 9.237 8.548 w1200 7.943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 28 16.663 14.898 13.406 12.137 11.051 10.116 | 9.307 8.602 7.9847.441 6.961 6.534 6.152 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 29 16.984 15.141 13.591 12.278 11.158 10.1989.370 8.650 8.0227.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4.159 3.994 30 17.292 15.372 13.765 12.409 11.258 10.2749.427 8.694 8.0557.496 7.003 6.566 6.177 5.829 5.517 5.235 4.979 4.746 4.746 4.534 4.534 4.3394.160 3.995 40 19.793 17.159 15.046 13.332 11.925 10.7579.779 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4.544 4.347 4.166 3.999