John and Sally Claussen are considering the purchase of a hardware store from John Duggan. The Claussens anticipate that the store will generate cash flows of $73,000 per year for 20 years. At the end of 20 years, they intend to sell the store for an estimated $430,000. The Claussens will finance the investment with a variable rate mortgage. Interest rates will increase twice during the 20-year life of the mortgage. Accordingly, the Claussens desired rate of return on this investment varies as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Years 15	7	%
Years 610	9	%
Years 1120	11	%

Required: What is the maximum amount the Claussens should pay John Duggan for the hardware store? (Assume that all cash flows occur at the end of the year.) (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

TABLE 1 Future Value of $1 FV = $1(1 + i)" mi 1.0% 1.5% 1 1.01000 1.01500 2 1.02010 1.03022 3 1.03030 1.04568 4 1.04060 1.06136 5 1.05101 1.07728 2.0% 2.5% 1.02000 1.02500 1.04040 1.05063 1.06121 1.07689 1.08243 1.10381 1.10408 1.13141 3.0% 1.03000 1.06090 1.09273 1.12551 1.15927 3.5% 4.0% 4.5% 1.03500 1.04000 1.04500 1.07123 1.08160 1.09203 1.10872 1.12486 1.14117 1.14752 1.16986 1.19252 1.18769 1.21665 1.24618 5.0% 1.05000 1.10250 1.15763 1.21551 1.27628 5.5% 1.05500 1.11303 1.17424 1.23882 1.30696 6.0% 7.0% 1.06000 1.07000 1.12360 1.14490 1.191021.22504 1.26248 1.31080 1.33823 1.40255 8.0% 1.08000 1.16640 1.25971 1.36049 1.46933 0.0% 0.0% 1.09000 1.10000 1.18810 1.21000 1.295031.33100 1.41158 1.46410 1.53862 1.61051 11.0% 1.11000 1.23210 1.36763 1.51807 1.68506 12.0% 1.12000 1.25440 1.40493 1.57352 1.76234 20.0% 1.20000 1.44000 1.72800 2.07360 2.48832 2.98598 6 7 8 9 10 1.06152 1.09344 1.07214 1.10984 1.08286 1.12649 1.09369 1.14339 1.10462 1.16054 1.12616 1.14869 1.17166 1.19509 1.21899 1.15969 1.18869 1.21840 1.24886 1.28008 1.19405 1.22987 1.26677 1.30477 1.34392 1.22926 1.27228 1.31681 1.36290 1.41060 1.26532 1.31593 1.36857 1.42331 1.48024 1.30226 1.34010 1.37884 1.36086 1.40710 1.45468 1.42210 1.47746 1.53469 1.48610 1.55133 1.61909 1.55297 1.62889 1.70814 1.41852 1.50363 1.59385 1.68948 1.79085 1.50073 1.58687 1.67710 1.60578 1.71382 1.82804 1.71819 1.850931.99256 1.83846 1.99900 2.17189 1.967152.15892 2.36736 1.77156 1.87041 1.948722.07616 2.14359 2.30454 2.35795 2.55804 2.59374 2.83942 1.97382 2.21068 2.47596 2.77308 3.10585 3.58318 4.29982 5.15978 6.19174 11 12 13 14 15 1.11567 1.12683 1.13809 1.14947 1.16097 1.17795 1.19562 1.21355 1.23176 1.25023 1.24337 1.31209 1.38423 1.26824 1.34489 1.42576 1.29361 1.37851 1.46853 1.31948 1.41297 1.51259 1.34587 1.44830 1.55797 1.45997 1.51107 1.56396 1.61869 1.67535 1.53945 1.62285 1.71034 1.802091.89830 1.60103 1.69588 1.79586 1.90121 2.01220 1.66507 1.77220 1.88565 2.00577 2.13293 1.73168 1.85194 1.97993 2.116092.26090 1.80094 1.93528 2.07893 2.23248 2.39656 2.10485 2.33164 2.25219 2.51817 2.40985 2.71962 2.57853 2.93719 2.759033.17217 2.58043 2.81266 3.06580 3.34173 3.64248 2.85312 3.13843 3.45227 3.79750 4.17725 3.15176 3.47855 3.49845 3.89598 3.88328 4.36349 4.31044 4.88711 4.784595.47357 7.43008 8.91610 10.69932 12.83918 15.40702 16 1.17258 1.26899 1.37279 1.48451 1.60471 1.73399 1.87298 2.02237 2.18287 2.35526 17 1.18430 1.28802 1.40024 1.52162 1.65285 1.79468 1.94790 2.11338 2.29202 2.48480 18 1.19615 1.30734 1.42825 1.55966 1.70243 1.85749 2.02582 2.20848 2.40662 2.62147 19 1.20811 1.32695 1.45681 1.59865 1.75351 1.92250 2.10685 2.30786 2.52695 2.76565 20 1.22019 1.34686 1.48595 1.63862 1.80611 1.98979 2.19112 2.41171 2.65330 2.91776 2.54035 2.69277 2.85434 3.02560 3.20714 2.95216 3.42594 3.15882 3.70002 3.379933.99602 3.61653 4.31570 3.86968 4.66096 3.97031 4.59497 4.32763 5.05447 4.717125.55992 5.14166 6.11591 5.60441 6.72750 5.31089 5.89509 6.54355 7.26334 8.06231 6.13039 6.86604 7.68997 8.61276 9.64629 18.48843 22.18611 26.62333 31.94800 38.33760 21 1.23239 1.36706 1.51567 1.67958 1.86029 25 1.28243 1.45095 1.64061 1.85394 2.09378 30 1.34785 1.56308 1.81136 2.09757 2.42726 40 1.48886 1.81402 2.20804 2.68506 3.26204 2.05943 2.27877 2.52024 2.78596 2.36324 2.665843 .00543 3.38635 2.806793.24340 3.74532 4.32194 3.95926 4.80102 5.81636 7.03999 3.07823 3.39956 4.14056 5.03383 3.813394.29187 5.427436.84848 4.98395 5.743497.61226 10.06266 8.51331 10.28572 14.97446 21.72452 6.10881 7.40025 8.94917 10.80385 46.00512 8.62308 10.83471 13.58546 17.00006 95.39622 13.26768 17.44940 22.89230 29.95992 237.37631 31.40942 45.25926 65.00087 93.05097 1469.77160 TABLE 2 Present Value of $1 $1 PV (1+i)" W 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 3.0% 0.0% 0.0% 11.0% 12.0% 20.0% 1 0.99010 0.98522 0.98039 0.97561 0.97087 0.96618 0.96154 0.95694 0.95238 0.94787 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.83333 2 0.98030 0.97066 0.96117 0.95181 0.94260 0.93351 0.92456 0.91573 0.90703 0.89845 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.69444 3 0.97059 0.95632 0.94232 0.92860 0.91514 0.90194 0.88900 0.87630 0.86384 0.85161 0.83962 0.81630 0.79383 0.77218 0.75131 0.73119 0.71178 0.57870 4 0.96098 0.94218 0.92385 0.90595 0.88849 0.87144 0.85480 0.83856 0.82270 0.80722 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.48225 5 0.95147 0.92826 0.90573 0.88385 0.86261 0.84197 0.82193 0.80245 0.78353 0.76513 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.40188 6 0.94205 0.91454 0.88797 0.86230 0.83748 0.81350 0.79031 0.76790 0.74622 0.72525 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.33490 7 0.93272 0.90103 0.87056 0.84127 0.81309 0.78599 0.75992 0.73483 0.71068 0.68744 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 0.27908 8 0.92348 0.88771 0.85349 0.82075 0.78941 0.75941 0.73069 0.70319 0.67684 0.65160 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.23257 9 0.91434 0.87459 0.83676 0.80073 0.76642 0.73373 0.70259 0.67290 0.64461 0.61763 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 0.19381 10 0.90529 0.86167 0.82035 0.78120 0.74409 0.70892 0.67556 0.64393 0.61391 0.58543 0.55839 0.50835 0.46319 0.42241 0.38554 0.35218 0.32197 0.16151 11 0.89632 0.84893 0.80426 0.76214 0.72242 0.68495 0.64958 0.61620 0.58468 0.55491 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0.13459 12 0.88745 0.83639 0.78849 0.74356 0.70138 0.66178 0.62460 0.58966 0.55684 0.52598 0.49697 0.44401 0.39711 0.35553 0.31863 0.28584 0.25668 0.11216 13 0.87866 0.82403 0.77303 0.72542 0.68095 0.63940 0.60057 0.56427 0.53032 0.49856 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.09346 14 0.86996 0.81185 0.75788 0.70773 0.66112 0.61778 0.57748 0.53997 0.50507 0.47257 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.07789 15 0.86135 0.79985 0.74301 0.69047 0.64186 0.59689 0.55526 0.51672 0.48102 0.44793 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 0.06491 16 0.85282 0.78803 0.72845 0.67362 0.62317 0.57671 0.53391 0.49447 0.45811 0.42458 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.05409 17 0.84438 0.77639 0.71416 0.65720 0.60502 0.55720 0.51337 0.47318 0.43630 0.40245 0.37136 0.31657 0.27027 0.23107 0.19784 0.16963 0.14564 0.04507 18 0.83602 0.76491 0.70016 0.64117 0.58739 0.53836 0.49363 0.45280 0.41552 0.38147 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.03756 19 0.82774 0.75361 0.68643 0.62553 0.57029 0.52016 0.47464 0.43330 0.39573 0.36158 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.03130 20 0.81954 0.74247 0.67297 0.61027 0.55368 0.50257 0.45639 0.41464 0.37689 0.34273 0.31180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10367 0.02608 21 0.81143 0.73150 0.65978 0.59539 0.53755 0.48557 0.43883 0.39679 0.35894 0.32486 0.29416 0.24151 0.19866 0.16370 0.13513 0.11174 0.09256 0.02174 24 0.78757 0.69954 0.62172 0.55288 0.49193 0.43796 0.39012 0.34770 0.31007 0.27666 0.24698 0.19715 0.15770 0.12640 0.10153 0.08170 0.06588 0.01258 25 0.77977 0.68921 0.609530.53939 0.47761 0.42315 0.37512 0.33273 0.29530 0.26223 0.23300 0.18425 0.14602 0.11597 0.09230 0.07361 0.05882 0.01048 28 0.75684 0.65910 0.57437 0.50088 0.43708 0.38165 0.33348 0.29157 0.25509 0.22332 0.19563 0.15040 0.11591 0.08955 0.06934 0.05382 0.04187 0.00607 29 0.74934 0.64936 0.56311 0.48866 0.42435 0.36875 0.32065 0.27902 0.24295 0.21168 0.18456 0.14056 0.10733 0.08215 0.06304 0.04849 0.03738 0.00506 30 0.74192 0.63976 0.55207 0.47674 0.41199 0.35628 0.30832 0.26700 0.23138 0.20064 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 0.03338 0.00421 31 0.73458 0.63031 0.54125 0.46511 0.39999 0.34423 0.29646 0.25550 0.22036 0.19018 0.16425 0.12277 0.09202 0.06915 0.05210 0.03935 0.02980 0.00351 40 0.67165 0.55126 0.45289 0.37243 0.30656 0.25257 0.20829 0.17193 0.14205 0.11746 0.09722 0.06678 0.04603 0.03184 0.02209 0.01538 0.01075 0.00068 TABLE 3 Future Value of an ordinary Annuity of $1 FVA = (1 + i)" - 1 w 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 8.0% 0.0% 0.0% 11.0% 12.0% 20.0% 1 2 1.0000 2.0100 1.0000 1.0000 1.0000 2.01502.02002.0250 1.0000 2.0300 1.0000 2.0350 1.0000 2.0400 1.000 2.0450 1.0000 2.0500 1.0000 2.0550 10000 2.0600 1.0000 2.0700 1.000 2.0800 1.0000 2.1000 3.3100 10000 2.1100 1.0000 2.1200 3 3.0301 3.0452 3.3421 3.0604 4.1216 5.2040 3.3744 3.0756 4.1525 5.2563 3.0909 4.1836 5.3091 3.1062 4.2149 5.3625 1.0000 2.0900 3.2781 4.5731 5.9847 3.1216 3.1370 4.24654.2782 5.4163 5.4707 3.1525 4.3101 5.5256 3.1680 3.1836 3.21493.2464 4.34234.37464.4399 4.5061 5.5811 5.6371 5.7507 5.8666 1.0000 2.2000 3.6400 5.3680 7.4416 4.7793 6.3528 5 5.1010 5.1523 6.1051 6.2278 9.9299 12.9159 6 7 8 9 10 6.1520 7.2135 8.2857 9.3685 10.4622 6.2296 6.3081 7.3230 7.4343 8.4328 8.5830 9.55939.7546 10.7027 10.9497 6.3877 6.4684 6.5502 7.54747.6625 7.7794 8.7361 8.892 9.0517 9.9545 10.1591 10.3685 11.2034 11.4639 11.7314 6.6330 7.8983 9.2142 10.5828 12.0061 6.71696.80196.88816.9753 8.0192 8.1420 8.2669 8 .3938 9.3800 9.5491 9.7216 9.8975 10.8021 11.0266 11.2563 11.4913 12.288212.5779 12.8754 13.1808 7.1533 8.6540 10.2598 11.9780 13.8164 7.33597.5233 7.7156 8.9228 9.2004 9.4872 10.6366 11.028511.4359 12.4876 13.0210 13.5795 14.4866 15.1929 15.9374 7.9129 9.7833 11.8594 14.1640 16.7220 8.1152 10.0890 12.2997 14.7757 17.5487 16.4991 20.7989 25.9587 11 12 13 14 15 11.5668 11.8633 12.1687 12.4835 12.8078 12.6825 13.0412 13.4121 13.7956 14.1920 13.8093 14.2368 14.6803 15.1404 15,6178 14.9474 15.4504 15.9739 16.5190 17.0863 16.0969 16.6821 17.2934 17.9319 18.5989 13.1420 13.4864 13.8412 14.6020 15.0258 15.4640 16.1130 16.6268 17.1599 17.6770 18.291918.9321 19.2957 20.0236 20.7841 14.2068 15.9171 17.7130 19.5986 21.5786 14.5835 16.3856 18.2868 20.2926 22.4087 14.9716 16.8699 18.8821 21.0151 23.2760 15.7836 17.8885 20.1406 22.5505 25.1290 16.6455 18.9771 21.4953 24.2149 27.1521 17.5603 18.5312 20.1407 21.3843 22.9534 24.5227 26.0192 27.9750 29.360931.7725 19.5614 22.7132 26.2116 30.0949 34.4054 20.6546 24.1331 28.0291 32.3926 37.2797 32.1504 39.5805 48.4966 59.1959 72.0351 16 17 18 19 20 17.2579 17.9324 18.6393 19.3802 20.1569 18.4304 19.2014 20.0121 20.8647 21.7616 19.6147 20.4894 21.4123 22.3863 23.4144 20.8109 21.7967 22.8406 23.9460 25.1169 22.0190 23.1237 24.2974 25.5447 26.8704 20.9710 21.8245 22.7050 23.6975 24.4997 25.6454 26.3572 27.6712 28.2797 29.7781 22.7193 24.7417 26.8551 29.0636 31.3714 23.6575 25.8404 28.1324 30.5390 33.0660 24.6411 25.6725 27.8881 26.9964 28.212930.8402 29.4812 30.9057 33.9990 32.102733.7600 37.3790 34.868336.7856 40.9955 30.3243 33.7502 37.4502 41.4463 45.7620 33.0034 36.9737 41.3013 46.0185 51.1601 35.9497 40.5447 45.5992 51.1591 57.2750 39.189942.7533 44.5008 48.8837 50.395955.7497 56.9395 63.4397 64.2028 72.0524 8 7.4421 105.9306 128.1167 154.7400 186.6880 21 23.2392 30 34.7849 40 48.8864 24.4705 25.7833 27.1833 28.676530.2695 31.9692 33.7831 35.7193 37.786139.9927 44.8652 50.4229 56.7645 37.5387 40.5681 43.9027 47.5754 51.6227 56.084961.0071 66.4388 72.4355 79.0582 94.4608 113.2832 136.3075 54.2679 60.4020 67.4026 75.4013 84.5503 95.0255 107.0303 120.7998 136.6056 154.7620 199.6351 259.0565 337.8824 64.0025 72.2651 164.4940 199.0209 442.5926 581.8261 81.6987 241 3327 767.0914 225.0256 1181.8816 7343.8578 TABLE 4 Present Value of an ordinary Annuity of $1 PVA = 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 8.0% 0.0% 10.0% 11.0% 12.0% 20.0% 1 2 3 4 5 0.99010 0.98522 1.97040 1.95588 2.940992.91220 3.90197 3.85438 4.85343 4.78264 0.980390.97561 1.94156 1.92742 2.88388 2.85602 3.80773 3.76197 4.71346 4.64583 0.97087 1.91347 2.82861 3.71710 4.57971 0.96618 0.96154 0.95694 1.899691.886091.87267 2.80164 2.77509 2.74896 3.67308 3.62990 3.58753 4.51505 4.45182 4.38998 0.95238 1.85941 2.72325 3.54595 4.32948 0.94787 1.84632 2.69793 3.50515 4.27028 0.94340 0.93458 1.83339 1.80802 2.67301 2.62432 3.465113.38721 4.212364.10020 0.92593 1.78326 2.57710 3.31213 3.99271 0.91743 0.90909 1.75911 1.73554 2.53129 2.48685 3.23972 3.16987 3.88965 3.79079 0.90090 0.89286 1.71252 1.69005 2.44371 2.40183 3.10245 3.03735 3.69590 3.60478 0.83333 1.52778 2.10648 2.58873 2.99061 6 7 8 9 10 5.79548 5.69719 5.60143 5.50813 5.41719 6.728196.59821 6.47199 6.349396.23028 7.65168 7.485937.32548 7.17014 7.01969 8.56602 8.36052 8.16224 7.97087 7.78611 9.47130 9.22218 8.982598.75206 8.53020 5.328555.24214 5.15787 5.07569 4.99553 4.91732 4.76654 6.11454 6.00205 5.89270 5.78637 5.68297 5.58238 5.38929 6.87396 6.73274 6.595896.46321 6.33457 6.20979 5.97130 7.607697.435337.268797.10782 6.95220 6.801696.51523 8.31661 8.11090 7.91272 7.721737.537637.360097.02358 4.62288 4.48592 4.35526 4.23054 4.11141 3.32551 5.20637 5.03295 4.86842 4.71220 4.56376 3.60459 5.74664 5.53482 5.33493 5.14612 4.96764 3.83716 6.24689 5.99525 5.759025 .53705 5.32825 4.03097 6.710086.41766 6.14457 5.88923 5.65022 4.19247 11 12 13 14 15 10.36763 11.25508 12.13374 13.00370 13.86505 10.07112 9.78685 10.90751 10.57534 11.73153 11.34837 12.54338 12.10625 13.34323 12.84926 9.51421 9.252629.00155 10.25776 9.95400 9.66333 10.98319 10.63496 10.30274 11.69091 11.29607 10.92052 12.38138 11.93794 11.51741 8.76048 9.38507 9.98565 10.56312 11.11839 8.52892 9.11858 9.68285 10.22283 10.73955 8.30641 8.86325 9.39357 9.89864 10.37966 8.09254 8.61852 9.11708 9.58965 10.03758 7.886877.49867 7.13896 8.38384 7.942697.53608 8.85268 8.35765 7.90378 9.294988.74547 8.24424 9.71225 9.10791 8.55948 6.80519 6.49506 6.206525.93770 4.32706 7.16073 6.81369 6.49236 6.19437 4.43922 7.48690710336 6.74987 6.42355 4.53268 7.78615 7.36669 6.98187 6.62817 4.61057 8.06069 7.60608 7.19087 6.81086 4.67547 16 14.71787 17 15.56225 18 16.39827 19 17.22601 2018.04555 14.13126 13.57771 13.05500 14.90765 14.29187 13.71220 15.67256 14.99203 14.35336 16.42617 15.67846 14.97889 17.16864 16.35143 15.58916 12.56110 12.09412 13.16612 12.65132 13.75351 13.18968 14.32380 13.70984 14.87747 14.21240 11.65230 12.16567 12.65930 13.13394 13.59033 11.23402 10.83777 11.70719 11.27407 12.15999 11.68959 12.59329 12.08532 13.00794 12.46221 10.46216 10.86461 11.24607 11.60765 11.95038 10.10590 10.47726 10.82760 11.15812 11.46992 9.446658.85137 8.31256 7.823717.37916 6.97399 4.72956 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 4.77463 10.059099.371898.75563 8.20141 7.70162 7.24967 4.81219 10.33560 9.60360 895011 8.36492 7.839297.36578 4.84350 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 4.86958 21 18.85698 17.90014 25 22.02316 20.71961 30 25.80771 24.01584 40 32.83469 29.91585 17.01121 19.52346 22.39646 27.35548 16.18455 18.42438 20.93029 25.10278 15.41502 17.41315 19.60044 23.11477 14.69797 16.48151 18.39205 21.35507 14.02916 15.62208 17.29203 19.79277 13.40472 14.82821 16.28889 18.40158 12.82115 14.09394 15.37245 17.15909 12.27524 13.41393 14.53375 16.04612 11.76408 12.78336 13.76483 15.04630 10.83553 11.65358 12.40904 13.33171 10.01680 10.67478 11.25778 11.92461 9.29224 9.82258 10.27365 10.75736 8.64869 8.07507 7.56200 4.89132 9.07704 8.42174 7.84314 4.94759 9.42691 8.69379 8.05518 4.97894 9.77905 8.95105 8.24378 4.99660 TABLE 5 Future Value of an Annuity Due of $1 FVAD = |(1+i)" 1 X (1+i). i wi 1 2 3 20.0% 1.2000 2.6400 1.0% 1.0100 2.0301 3.0604 4.1010 5.1520 1.5% 1.0150 2.0452 3.0909 4.1523 5.2296 2.0% 1.0200 2.0604 3.1216 4.2040 5.3081 2.5% 1.0250 2.0756 3.1525 4.2563 5.3877 3.0% 3.5% 4.0% 4.5% 5.0% 1.0300 1.0350 1.0400 1.0450 1.0500 2.0909 2.1062 2.1216 2.1370 2.1525 3.1836 3.21493.24653.27823.3101 4.30914.3625 4.41634.4707 4.5256 5.4684 5.5502 5.6330 5.7169 5.8019 5,5% 1.0550 2.1680 3.3423 4.5811 5.8881 6.0% 1.0600 2.1836 3.3746 4.6371 5.9753 7.0% 8.0% 0.0% 1.0700 1.0800 1.0900 2.2149 2.2464 2.2781 3.4399 3.5061 3.5731 4.7507 4.8666 4.9847 6.15336.33596.5233 0.0% 1.1000 2.3100 3.6410 5.1051 6.7156 11.0% 12.0% 1.1100 1.1200 2.3421 2.3744 3.7097 3.7793 5.2278 5.3528 6.91297.1152 4.3680 6.4416 8.9299 5 8.48728.7833 11.9159 15.4991 9 6 7 8 9 10 6.2135 7.2857 8.3685 9.4622 10.5668 6.3230 7.4328 8.5593 9.7027 10.8633 6.4343 7.5830 8.7546 9.9497 11.1687 6.5474 7.7361 8.9545 10.2034 11.4835 6.6625 7.8923 9.1591 10.4639 11.8078 6.7794 8.0517 9.3685 10.7314 12.1420 6.89837.0192 8.2142 8.3800 9.5828 9.8021 11.0061 11.2882 12.4864 12.8412 7.1420 7.2669 8.5491 8.7216 10.0266 10.2563 11.577911.8754 13.2068 13.5835 7.3938 8.8975 10.4913 12.1808 13.9716 7.6540 9.2598 10.9780 12.8164 14.7836 7.9228 .6366 11.4876 13.4866 15.6455 8.2004 10.0285 12.0210 14.1929 16.5603 10.4359 12.5795 14.9374 17.5312 19.7989 9.0890 11.2997 13.7757 16.5487 19.6546 10.8594 13.1640 15.7220 18.5614 24.9587 31.1504 11 12 13 14 15 11.6825 12.8093 13.9474 15.0969 16.2579 12.0412 13.2368 14.4504 15.6821 16.9324 12.4121 13.6803 14.9739 16.2934 17.6393 12.7956 14.1404 15.5190 16.9319 18.3802 13.1920 14.6178 16.0863 17.5989 19.1569 13.6020 15.1130 16.6770 18.2957 19.9710 14.0258 15.6268 17.2919 19.0236 20.8245 14.4640 16.1599 17.9321 19.7841 21.7193 14.9171 16.7130 18.5986 20.5786 22.6575 15.3856 17.2868 19.2926 21.4087 23.6411 15.8699 17.8821 20.0151 22.2760 24.6725 16.8885 19.1406 21.5505 24.1290 26.8881 17.9771 20.4953 23.2149 26.1521 29.3243 19.1407 21.9534 25.0192 28.3609 32.0034 20.3843 23.5227 26.9750 30.7725 34.9497 21.7132 25.2116 29.0949 33.4054 38.1899 23.1331 27.0291 31.3926 36.2797 41.7533 38.5805 47.4966 58.1959 71.0351 86.4421 16 17.4304 18.2014 19.0121 19.8647 20.7616 21.7050 22.6975 17 18.6147 19.4894 20.4123 21.3863 22.4144 23.4997 24.6454 18 19.8109 20.7967 21.8406 22.9460 24.1169 25.3572 26.6712 19 21.0190 22.1237 23.2974 24.5447 25.8704 27.2797 28.7781 20 22.2392 23.4705 24.7833 26.1833 27.6765 29.2695 30.9692 23.7417 25.8551 28.0636 30.3714 32.7831 24.8404 27.1324 29.5390 32.0660 34.7193 25.9964 27.2129 28.4812 29.9057 31.1027 32.7600 33.8683 35.7856 36.786138.9927 29.840232.7502 35.9737 32.9990 36.4502 40.3013 36.3790 40.4463 45.0185 39.9955 44.762050.1601 43.8652 49.422955.7645 39.5447 44.5992 50.1591 56.2750 63.0025 43.5008 47.8837 49.395954.7497 55.939562.4397 63.2028 71.0524 71.2651 80.6987 104.9306 127.1167 153.7400 185.6880 224.0256 21 23.4716 24.8376 26.2990 27.8629 29.5368 31.328933.2480 25 28.5256 30.5140 32.6709 35.0117 37.5530 40.3131 433117 30 35.1327 38.1018 41.3794 45.0003 49.0027 53.4295 58.3283 40 49.3752 55.0819 61.6100 69.0876 77.6633 87.5095 98.8265 35.3034 46.5706 63.7524 111.8467 37.5052 50.1135 69.7608 126.8398 39.8643 53.9660 76.4194 144.1189 42.3923 48.0057 54.4568 61.8733 70.4027 80.2143 91.5026 58.1564 67.6765 78.9544 92.3240 108.1818 126.9988 149.3339 83.8017 101.0730 122.3459 148.5752 180.9434 220.9132 270.2926 164.0477 213.6096 279.7810 368.2919 486.8518 645.8269859.1424 270.0307 566.3773 1418.2579 8812.6294 TABLE 6 Present Value of an Annuity Due of $1 (1 - 1+ PVAD = (1+) wi 1 2 3 4 1.0% 1.00000 1.99010 2.97040 3.94099 .5% 1.00000 1.98522 2.95588 3.91220 2.0% 1.00000 1.98039 2.94156 3.88388 2.5% 1.00000 1.97561 2.92742 3.85602 3.0% 1.00000 1.97087 2.91347 3.82861 3.5% 4.0% 4.5% 1.00000 1.00000 1.00000 1.96618 1.96154 1.95694 2.899692.886092.87267 3.80164 3.77509 3.74896 5.0% 1.00000 1.95238 2.85941 3.72325 54595 5.5% 1.00000 1.94787 2.84632 3.69793 4.50515 6.0% 1.00000 1.94340 2.83339 3.67301 4.46511 70% 8.0% 0.0% 1.000001.00000 1.00000 1.93458 1.92593 1.91743 2.80802 2.78326 2.75911 3.62432 3.57710 3.53129 4.38721 4.312134.23972 0.0% 11.0% 12.0% 20.0% 1.00000 1.00000 1.00000 1.00000 1.90909 1.90090 1.89286 1.83333 2.73554 2.71252 2.69005 2.52778 3.48685 3.44371 3.40183 3.10648 4.16987 4.10245 4.03735 3.58873 6 7 5.85343 6.79548 5.78264 5.71346 6.697196.60143 5.64583 5.57971 5.51505 5.45182 5.38998 5.32948 5.27028 6.50813 6.417196.32855 6.24214 6.15787 6.07569 5.99553 7349397.23028 7.11454 7.00205 6.89270 0.18 78637 6.68297 8.17014 8.01969 7.87396 7.73274 73274 7.595897.46321 7.59589 7.463217.33457 7.33457 8.97087 8.78611 8.607698.435338.26879 8.10782 7.95220 5.21236 5.91732 6.58238 5.10020 4.99271 5.76654 5.62288 6.389296.20637 4.88965 5.48592 6.03295 4.79079 4.69590 4.60478 3.99061 5.35526 5.23054 5.11141 4.32551 5.86842 5.71220 5.56376 4.60459 9 8.651688.48593 8.32548 7.209796.971 7.209796.97130 6.74664 6.53482 6.33493 6.14612 5.96764 4.83716 10 9.56602 9.36052 9.16224 7.801697.51523 7.24689 6.99525 6.75902 6.53705 6.32825 5.03097 11 10.47130 10.22218 1211.36763 11.07112 13 12 25508 11.90751 14 13.13374 12.73153 15 14.00370 13.54338 9.98259 10.78685 11.57534 12.34837 13.10625 9.75206 9.53020 9.31661 9.11090 10.51421 10.25262 10.00155 9.76048 11.25776 10.95400 10.66333 10.38507 11.98318 11.63496 11.30274 10.98565 12.69091 12.29607 11.92052 11.56312 8.91272 8.72173 9.528929.30641 10.118589.86325 10.68285 10.39357 11.22283 10.89864 8.53763 9.09254 9.61852 10.11708 10.58965 8.360098.02358 7.71008 8.88687 8.49867 8.13896 9.38384 8.942698.53608 9.85268 9.35765 8.90378 10.29498 9.74547 9.24424 7.41766 7.14457 6.88923 6.650225.19247 7.805197.49506 7.20652 6.93770 5.32706 8.160737.813697 .49236 7.19437 5.43922 8.48690 8.10336 7.749877.42355 5.53268 8.78615 8.366697.98187 7.62817 5.61057 16 17 18 19 20 14.86505 14.34323 15.71787 15.13126 16.56225 15.90765 17.39827 16.67256 18.22601 17.42617 13.84926 14.57771 15.29187 15.99203 16.67846 13.38138 14.05500 14.71220 15.35336 15.97889 12.93794 13.56110 14.16612 14.75351 15.32380 12.51741 12.11839 11.73955 13.09412 12.65230 12.23402 13.65132 13.16567 12.70719 14.18968 13.65930 13.15999 14.70984 14.13394 13.59329 11.37966 11.03758 10.71225 11.83777 11.46216 11.10590 12.27407 11.86461 11.47726 12.68959 12.24607 11.82760 13.08532 12.60765 12.15812 10.10791 10.44665 10.76322 11.05909 11.33560 9.55948 9.85137 10.12164 10.37189 10.60360 9.060698.60608 8.19087 7.81086 5.67547 9.31256 8.82371 8.37916 7.97399 5.72956 9.54363 9.02155 8.54879 8.11963 5.77463 9.75563 9.20141 8.70162 8.24967 5.81219 995011 9.36492 8.83929 8.36578 5.84350 21 19.04555 18.16864 17.35143 16.58916 15.87747 15.21240 25 22.24339 21.03041 19.91393 18.88499 17.93554 17.05837 30 26.06579 24.37608 22.84438 21.45355 20.18845 19.03577 40 33.16303 30.36458 27.90259 25.73034 23.80822 22.10250 14.59033 16.24696 17.98371 20.58448 14.00794 13.46221 12.95038 15.49548 14.79864 14.15170 17.02189 16.14107 15.33310 19.22966 18.01704 16.92866 12.46992 13.55036 14.59072 15.94907 11.59401 12.46933 13.27767 14.26493 10.81815 11.52876 12.15841 12.87858 10.12855 10.70661 11.19828 11.72552 9.51356 9.98474 10.36961 10.75696 9.96333 8.469445.86958 9.34814 8.78432 5.93710 9.65011 9.02181 5.97472 9.93567 9.23303 5.99592 PV of $73,000 cash flow PV of $430,000 selling price Maximum paid for store Years 1-5 Years 6-10 Years 11-20 Year 20 Total