L2I2U SIME LU Metro Clinic, a nonprofit organization, estimates that it can save $28,000 a year in cash operating costs for the next 10 years if it buys a special purpose eye-testing machine at a cost of $110,000. No terminal disposal value is expected. Metro Clinic's required rate of return is 14%. Assume all cash flows occur at year-end except for initial investment amounts. Metro Clinic uses straight-line depreciation. Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements Requirement 1. Calculate the following for the special purpose eye-testing machine a. Net present value (NPV) (Use factors to three decimal places, XXXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) The net present value is Calculate the following for the special-purpose eye-testing machine: a. Net present value b. Payback period c. Internal rate of return d. Accrual accounting rate of return based on net initial investment e. Accrual accounting rate of return based on average investment What other factors should Metro Clinic consider in deciding whether to purchase the special-purpose eye-testing machine? Present Value of $1 Periods 2 4 % 6% Period 1 0980002 0.943 Period 20 061 0.925 0.890 Period 3 094208890 840 Period 4 0924 0.8550 792 Period 5 0908 0 R22 0 747 Period 6 0 BBB 0.790 0.705 Period 7 0 871 0.750 0.565 Period 8 0.853 0.731 0.627 Period 9 0.837 0.703 0.592 Period 10 0.820 0.676 0.558 Period 11 0.804 0.650 0.527 Period 12 0.788 0.625 0.497 Period 13 0.773 0.601 0.469 Period 14 0.758 0.577 0.442 Period 15 0.743 0.555 0.417 Period 16 0.728 0534 0394 Period 17 0.714 0.513 0371 Period 18 0 700 0.494 0 350 Period 19 0.686 0.475 0331 Period 20 0.673 0.456 0312 Period 21 0660 0439 0294 Period 22 0.647 0.422 0.278 Period 23 0.634 0.406 0.22 8% 10% 12% 14% 16% 10% 0.926 0.9090930877062 0.847 0.857 0.8260.797 07890743 0718 0.794 0.751 0.712 06750 641 0600 0.735 0683 0.63 0 5920552 0516 0.681 0.621 0.587 0.519 0476 0.437 0.6300 .564 0.507 0.4560 .410 0370 0.583 0.513 0.452 0.400 0.354 0.314 0.540 0.467 0.404 0.351 0.305 0.268 0.500 0.424 0.361 0.308 0.263 0.225 0.463 0.3.860.322 0.270 0227 0.191 0.429 0.350 0.287 0.237 0.106 0.162 0.397 0.3190 .257 0.208 0.168 0.137 0.368 0.290 0.229 0.182 0.145 0.116 0.340 0.2630 2050.160 0.125 0.099 0.315 0.2390.183 0.140 0.108 0.034 0.292 02180.163 0.123 0093 0.071 0.270 0.1980.146 0.08 0.080 0.000 0.250 0.180 0.130 0.005 0.069 0.051 02320 164 0.116 0083 0.060 0.043 0215 0.149 0.1040 073 0.051 0.037 0.19 0.1350093 0.064 0.044 0031 0.184 0.123 0 0B3 0056 0.038 0.026 0.1700 .1120074 0.040 0.033 0.022 20% 22% 07311) 020 069 0672 05790551 042 0451 0.402 0.370 0.335 0.303 0.279 0.249 0.233 0.204 0.194 0.167 0.162 0.137 0.135 0.112 0.112 0.092 0.093 0.075 0.078 0.062 0.055 0.051 0054 0042 0.045 0.034 0.038 0.028 0.031 0.023 0.026 0.019 0.022 0.015 0.018 0.013 0.015 0.010 24% 26% 018060.794 0 650 0.630 0524 0.500 0.423 0.397 0.341 0.315 0.275 0.250 0.222 0.198 0.179 0.157 0.144 0.125 0.116 0.099 0.094 0.079 0.078 0.062 0.061 0.050 0.049 0.009 0040 0.031 0002 0.025 0.025 0.020 0.021 0016 0.017 0012 0.014 0.010 0011 0000 0.000 0.008 0.007 0.005 28% 30% 32% 0.781 0.759 0.750 0.610 05920574 0.477 0.455 0.435 0.373 0.350 0329 0291 0.2890.250 0.227 0.207 0.189 0.178 0.159 0.143 0.139 0.123 0.108 0.108 0.094 0082 0.085 0.073 0.002 0.066 0056 0.047 0.052 0.043 0.036 0.040 0.033 0.027 0.032 0.025 0.021 0.025 0.0200016 0.019 00150012 0,015 0,012 0009 0012 0009 0.007 00090 007 0005 0.007 0.005 0.004 0000 0004 0.003 0.004 0.003 0.002 0.003 0.002 0.002 40% Periods 0.714 Period 1 0.510 Period 2 0.364 Period 3 0.260 Period 4 0.186 Period 5 0.133 Period 0.095 Period 7 0.068 Period 8 0.048 Period 9 0.035 Period 10 0.025 Period 11 0.018 Period 12 0.013 Period 13 0.009 Period 14 0.008 Period 15 0.005 Period 16 0.003 Period 17 0.002 Period 18 0.002 Period 19 0.001 Period 20 0.001 Period 21 0.001 Period 22 0.000 Period 23 Present Value of Annuity of $1.00 in Arrears Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 20% Period 1 09800 962 0.943 0.926 0909 01893 0187707862 01847 0833 1820 806 0.794 Period 2 1.942 1.886 1.833 1.7831.738 1.690 16471805 1 566 1528 1.492 1.457 1424 Period 3 2884 2.775 2673 25772487 240223222.246 2.174 2.106 2042 1.981 1.923 Period 4 3.808 3.630 3.465 3 312 3.170 3037 2014 2.798 2690 2 589 2494 2404 2320 Periods 4.713 4.452 4212 3 9933.791 3 605 34333274 3.127 2091 2064 2745 2 635 Period 5.601 5.2424 917 4.6234355 4.111 38 3 .685 3.498 3.326 3.167 3.020 2 885 Period 7 6.472 6.002 5 582 5.2064863 4.564 4.28040393.812 3.605 3.416 3 242 3.083 Period 8 7.325 6.733 6.210 5.747 5.335 4.00 4.639 4.34 4.078 3.837 3.619 3.421 3.241 Period 98 .162 74356 802 6.247 5.759 5.328 4. 6 4.607 4.303 4,031 3.786 3.500 3.336 Period 10 8 983 8.1117.360 6.710 6.145 50505.216 4833 4.494 4.192 3.923 3.682 3.465 Period 119.787 8.7607887 7.139 6.495 5938 5.453 5020 4.656 4.327 4.035 3 778 3.543 Period 12 10.575 93858.384 7.536 6.814 6.194 5.500 5.197 4.793 4.439 4.127 3.851 3.806 Period 13 11 348 0986 8.853 7904 7.103 6.424 5.842 5.342 4.910 4.533 4.203 3.012 3.656 Period 14 12 103 10.563 9.295 8.244 7367 6.628 6.002 5.468 5008 4.611 4.265 3.962 3.695 Period 15 12 849 11.118 9.712 8.559 7.606 6 8116.142 5.575 5.092 4.675 4 315 4001 3.726 Period 16 13 578 11.652 10.106 8.851 7.824 6.974 6 265 5.668 5.162 4.730 4357 4.033 3.751 Period 17 14 292 12.188 10.477 9.1228.022 7.120 63735.749 5222 4.775 4.391 4.059 3.771 Period 18 14 992 12 659 10.828 9.372 8201 7.250 6.4675818 5273 48124419 4 0 3 788 Period 19 15 578 13.134 11.158 9.604 8.365 7.366 6.5505.877 5.316 4843 44424097 3.799 Period 20 16 351 13 590 11.470 9.818 8.514 74696.6235929535348704460 4.110 308 Period 21 17 011 14029 11.784 10017 86497562 6.687 5 973 5.354 4 891 4 476 4.121 3816 Period 22 17 658 14 45112042 10201 8.772 7545 6.7436,011 5.410 4.909 4488 4.130 3.822 Period 23 18 292 14.857 12 303 10.371 BR 7718 67926044 5.432 4925 4400 4137 327 28% 30% 32% 0.781 0.769 0.758 1.392 1.361 1331 1.868 1.815 1.766 2241 2.168 2096 2532 2436 2345 2.759 2.643 2534 2.937 2802 2.677 3076 2925 2.786 3.184 30192 868 3269 3.092 2930 3335 3.147 2.978 3.387 3.190 3.013 3.427 3 223 3.040 3.459 3.2493.061 3.483 3268 3.078 3.503 3 283 3 088 3.518 3 295 3.097 3529 3304 3104 3539 3.311 3.109 3546 3316 3113 3551 3320 3.116 3.556 3 323 3.118 3550 3325 3.120 40% Periods 0.714 Period 1 1 224 Period 2 1.589 Period 3 1849 Period 4 2035 Period 5 2.168 Period 6 2.263 Period 7 2.331 Period 8 2.379 Period 9 2.414 Period 10 2.438 Period 11 2.456 Period 12 2.489 Period 13 2.478 Period 14 2.484 Period 15 2489 Period 16 2492 Period 17 2494 Period 18 2495 Period 19 2497 Period 20 2498 Period 21 2498 Period 22 2499 Period 23 15 1538 4.398 Compound Amount of $100 (The Future Value of $1.00) Periods 2% % % % 10% 12% 14% 18% 18% 22% 24% 28% Period 1 1020 1040 1080 1080 1.100 1.120 1200 1220 1240 1250 Period 2 1.040 10821.124 1.166 1210 1254 1300 1 1392 151 Period 3 1.051 1.125 1.191 1260 1331 140 1412 1561 1543 1916 1907 2000 Period 4 1 082 1.170 1202 1360 1454 1574 1939 2215 21 2520 Period 5 1.104 1217 1.338 1.469 1.611 1.762 1.925 2.100 2288 2.488 2.703 2.932 3.176 Period 6 1.1261205 1419 1587 1.772 1.974 2195 2436 2 700 2900 3.297 3535 4002 Period 7 1.149 1 316 1,504 1.7141.949 2211 2102 226 3.185 3583 5.042 Period 8 1.172 1.300 1.504 1.851 2.144 2476 2053 3278 3759 4.300 4900 5.500 6.353 Period 9 1.195 1423 1.589 1.9992358 2773 3 252 3 8034 435 5.160 5.987 6.931 8.005 Period 10 1.219 1.480 1.791 2.159 2594 3.108 3.707 4 411 5234 6.192 7305 8.594 10 086 Period 11 1 243 1.530 1.898 2.3322853 3.479 4 226 5.117 6.176 7430 891210657 12 708 Period 12 1 268 1,001 2012 25183.138 3896 4.818 5.36 7288 8.916 18.012 Period 13 1 294 1665 2.133 2.720 3.452 4.333 5.492 .000 8.500 10.699 13.254 16386 Period 14 1.319 1.732 2.201 2.937 3.797 4.887 6201 7.08 10.147 12.809 16.182 20.319 28.421 Period 15 1.346 1.801 2397 3.172 4.177 5.474 7.138 9200 11.974 15.407 19.742 25.19 32030 Period 16 1.373 1.873 2.50 3.426 4 595 6.130 137 10.748 14.129 18.488 24085 3123 00358 Period 17 1.400 1. 8 2.693 37005.054 6 6 0 27812458 16.672 22.186 29 384 38.741 50 851 Period 18 1428 2029 2854 300 5.500 7800 10 575 14.453 19.673 26.623 35.349 48039 64072 Period 19 1 457 2 107 30204316 6118 8613 12056 1677723.214 31.948 43.735 5 8 30 731 Period 20 1435 2191 3207 4661 6727 9.548 13.763 19.461 27 303 38 338 3358 354 101.721 Period 21 1516 2 279 3400 5034 7400 10.804 15668 22 5942324 46 005 05.09691502 128.100 Period 22 1 545 2370 36045.637 140 12.100 17 01 2016 142 55 206 79.418 113.574 161402 Period 23 15772465320 5.871 8954 13 552 20 302 30376 45 008 66.247 96.889 14031 203.40 30% Periods 1400 Period 1 1960 Period 2 2 193 2.744 Period 3 Period 4 5.378 Period 5 4827 Period 6. 3 10 541 Period 7 9217 14.758 Period 8 20.061 Period 9 13.786 16 000 28.925 Period 10 17.922 Period 11 23 298 27983 56.4 Period 12 79371 Period 13 1917 111.120 Period 14 51.185 34 158.568 Period 15 65 542 1409217795 Period 16 85 504 112.139 304913 Period 17 112 455 4 879 Period 18 46192 193 1 7830 Period 19 190 0502579 M ) Period 20 247 085 340440 1171 356 Period 21 221.154449303 638 Period 22 417 539 39 22057 Period 23 11.806 15.112 19.343 24.759 31.691 4 0565 51 923 68.451 5071 108 80 1390 178 406 228300 292 300 07 22% 26% 28% 30% 324 1000 1000 2.400 24% 1000 2.240 3.778 5.684 8.048 2.320 2220 3.708 5.524 7.740 Period 2 3.808 5848 8.368 3918 6016 8.700 700 3990 6.187 9.043 10 MB 6.32 9.30 13404 1860 25.678 13.740 17.782 22.870 Compound Amount of Annuity of $1.00 in Amears (Future Value of Annuity) Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.020 2010 2.060 2.080 2.100 2.120 2.1402160 2180 2.200 Period 3 3.080 3.122 3.184 3.240 3.310 3374 3.440 3.506 3.572 3640 Period 4 4.122 4.246 4.375 4.508 4.641 4.779 4.9215.066 5215 5.368 Period 5 5.204 5.416 5.837 5.807 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.308 6.633 6975 7336 7.710 8.115 8.5388.977 9.442 9.930 Period 7 7.434 7.898 8.394 8.9239487 10.080 10.730 11.414 12.142 12.916 Period 8 8.583 9.214 9.897 10.637 11 436 12300 13.233 14.240 15 327 16,499 Period 9 9.755 10.583 11.491 12488 13.579 14.778 10.085 17.519 19.086 20.799 Period 10 10.950 200013 1814 487 19.037 17 549 10 17 21 121 222 25.99 Period 11 12 189 13 486 14.972 18.645 18.531 20.655 23045 25.733 28.755 32 150 Period 12 13.412 15.028 16.870 18.977 21.354 24.133 27 271 30 850 34 901 30 581 Period 13 14.680 16.627 18 2 21.405 24 23 28 029 32 089 36.788 42 219 48 497 Period 14 15 974 18.292 21.015 24 215 27 975 32 393 37 581 43.672 50 818 59.196 Period 15 17 293 20.024 23 276 27.152 31.772 37 280 43.542 51.680 50.965 72.035 Period 16 18.639 21.825 25.673 30 324 35.950 42.753 50 980 60 925 72.939 87.442 Period 17 20.012 23 698 28 213 33 750 40.545 48 84 59.118 71 573 87.058 105.931 Period 18 21.412 25 545 30 908 37 450 45.599 55 750 68 394 84.141 103.740 128. 117 Period 19 22 841 27 671 33 760 41.44651.159 63 440 78 989 98 603 123 414 154.740 Period 20 24 297 29.778 376 45.762 57 27572 052 91025 115 350 145.628186688 Period 21 25.783 31.900 39903 50.423 64 002 81.699 104.768 134.841 174 021 225.026 Period 22 27 299 34 248 43 392 55.457 71 403 92 503 120.436 157 415 205.345 271.031 Period 23 28 845 36 518 45 996 60 893 79 563 104 103 138 297 163 001 244 487 326 237 47.002 03.122 34.320 35.962 44.874 55 746 69.010 85.192 101.935 129.020 158 405 194.254 237.989 291.37 356.443 435.861 14 615 19.123 24.712 31 643 40238 50.895 64,110 80.496 100 815 120.011 157 253 195 994 244.033 303.601 377 465 469056 582.630 15 546 20.588 26.040 34.945 45.031 57.739 73.751 93 926 119.347 151.377 191.735 242.585 306.658 387 389 489 110 617 278 778771 16.534 17583 22.10323 858 29.369 32.015 38.583 42.619 50.398 58405 65.510 74.327 84 853 97625 109 612 127 913 141.303 167.286 181.868 218.472 233.791 285 014 300252 371518 385 23 483 073 494213 630.165 633 93 20.215 811.000 1067280 1040 358 1388.454 Period 5 Period Period 7 Period Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 23 853 34 305 49.153 69 814 98.739 139 215 195 929 275 300 388 420 541.988 759.784 1084607 1491 576 2089 205 2925 589 4097 245 5737 142 197 097 262 356 347 309 459 449 007 472 02.863 1060 779 1401 220 1850.622