just the x's please!

appendix D

appendix B

Problem 22-13 A firm, whose cost of capital is 8 percent, may acquire equipment for $127,900 and rent it to someone for a period of six years. Note: Although payment of rent is typically considered to be an annuity due, treat it as an ordinary annuity when completing this problem in a spreadsheet or when using present value factors. a. If the firm charges $29,370 annually to rent the equipment, what are the net present value and the internal rate of return on the Investment? Use Appendix D to answer the questions. Use a minus sign to enter negative values, if any. Round your answers for the net present value to the nearest dollar and for the internal rate of return to the nearest whole number. NPV: $ 7,874 ERR: 10 Should the firm acquire the equipment? The firm should acquire the equipment as the net present value is positive and the internal rate of retum exceeds the firm's cost of capital, b. If the equipment has no estimated residual value, what must be the minimum annual rental charge for the firm to earn the required 8 percent on the Investment? Use Appendix D to answer the question. Round your answer to the nearest dollar c. If the firm can sell the equipment at the end of year six for $14,100 and receive annual rent payments of $29,370, what are the net present value and the internal rate of return on the Investment? Use Appendix B and Appendix D to answer the questions. Use a minus sign to enter negative values, If any. Round your answers for the net present value to the nearest dollar and for the internal rate of return to the nearest whole number NPV: $ TRR What is the impact of the residual? The residual value increases both the NPV and IRR d. If the $14,100 residual resulted in the firm charging only $27,020 for the rental payments, what is the impact on the investment's net present value? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar Reducing the rentat payments and recouping it through the residual value reduces the not present value by s Interest Factors for the Present Value of an Annuity of One Dollar Time Period year) 1 2 3 4 5 AWN 15 2% 3% 5% 6% 78 8% 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 0.990 0.980 0,971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1970 1942 1913 1.886 1.859 1.833 1.808 1.783 1.759 1736 1.690 1647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.941 2.884 2.829 2.775 2.723 2.673 2624 2.577 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1981 1.868 1.766 1674 3902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2,690 2.589 2.404 2.241 2.096 1966 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 6 7 8 9 10 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5,033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7.652 7.325 7020 6.733 6.463 6210 5.971 5.747 5.535 5.335 4.968 4.639 4,344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7.435 7108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4,607 4303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 11 12 13 14 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 2139 6.805 6.495 5988 5.453 5.029 4.656 4.327 3.776 3.335 2978 2.683 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7,161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7904 7.487 7.103 6.424 5.842 5.342 4910 4533 3.912 3.427 3.040 2.727 13.004 12.106 11:296 10.563 9.899 9.295 8.745 8.244 7.786 7367 6.628 6.002 5.468 5.008 4,611 3962 3.459 3.061 2.740 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7.606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 EHB 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.312 7.824 6.974 6.265 5.669 5.162 4.730 4.003 3.503 3.088 2.758 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.002 7120 6.373 5.749 5.222 4.775 4.059 3.518 3.097 2.763 16.398 14.992 13.754 12659 11690 10,828 10.059 9.372 8.756 8.201 7250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 2767 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 5.877 5.316 4,844 4.097 3,539 3.109 2770 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2772 25 22.023 19.523 17413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13,765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4.979 4.160 3,569 3.124 2.778 Interest Factors for the Present Value of One Dollar Time Period year) 1 5% 952 20% 833 28% 781 4% 962 925 889 in - L- ON w % ww 375 295 308 231 033 .004 001