Labeau Products, Limited, of Perth, Australia, has $25,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest in Project X Investment required Annual cash inflows $ 25,000 $8,000 Invest in Project Y $ 25,000 Single cash inflow at the end of 6 years Life of the project $ 60,000 6 years 6 years The company's discount rate is 18%. Click here to view Exhibit 12B-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project X. 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept? EXHIBIT 128-1 Present Value of $1; 1 ((1+r))" Periods 45% 1 0.962 5% 6% 7% 0.952 0.943 0.935 10% 2 0.925 0.907 0.890 0.873 3 0.889 0.864 0.840 0.816 4 0.855 0.823 0.792 0.763 5 6 7 0.760 0.711 0.665 0.623 8 0,731 0.677 0.627 0.582 0.540 9 0.703 0.645 0.592 0544 0500 10 0.676 0.614 0.358 0508 0.650 0.585 0327 0.475 12 13 14 15 16 17 18 19 20 21 22 23 0.211 24 0.390 0.310 0.247 0.197 25 26 27 28 29 30 0.347 0.268 0207 0.161 0.333 0.255 0.196 0.150 0321 0.243 0.185 0.141 0.308 0.231 0.174 0.131 0.099 0.075 0.057 40 0.208 0.142 0.097 0.067 8% 9% 20% 21% 22% 23% 24% 25% 0.926 0.917 0.909 0.833 0.826 0.820 0.813 0.806 0.800 0857 0.842 0826 0,694 0.683 0.672 0.650 0.640 0.661 0.794 0.772 0.751 0.579 0.564 0551 0.537 0.524 0.512 0.735 0.708 0.683 0552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0410 0.822 0.784 0.747 0.713 0681 0.650 0.621 0476 0456 0437 0419 0.402 0.386 0.370 0.355 0.341 0,328 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0410 0.390 0.370 0.352 0.335 0.319 0.303 0289 0.275 0.262 0.583 0.547 0.513 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 0.502 | 0.467 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 0460 0424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 0.463 0422 0.386 0.352 0322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 0429 0388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 0.625 0557 0.497 0.444 0.397 0.356 0319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182) 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 0.577 0.505 0442 0.388 0340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 0.355 0.481 0417 0.362 0315 0.275 0.239 0.209 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 0.534 0458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0042 0.036 0.032 0.028 0513 0436 0371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.026 0023 0.494 0416 0.350 0.296 0.250 0212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 0475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 0456 0.377 0312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.016 0.014 0.012 0439 0.359 0.294 0.242 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0037 0.031 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0422 0342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0038 0.032 0.026 0.022 0.018 0015 0013 0.011 0.009 0.007 0406 0.326 0.262 0.170 0.138 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 0.158 0.126 0.102 0.082 0066 0.053 0.043 0.035 0.028 0.023 0.019 0.015 0.013 0.010 0.008 0.007 0.006 0.005 0.375 0.295 0.233 0.184 0.146 0,116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0.053 0.042 0.033 0.026 0.021 0.017 0014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.125 0.098 0.076 0060 0047 0037 0.029 0.023 0.018 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 0.116 0.090 0.069 0.054 0.042 0.033 0.026 0.020 0016 0012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.107 0.082 0.063 0.048 0037 0.029 0.022 0.017 0014 0011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 0.044 0.033 0.026 0.020 0015 0012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0046 0.032 0.022 0.015 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 11% 12% 13% 14% 15% 16% 17% 18% 19% 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.659 0.636 0.613 0.592 0572 0.593 0.567 0.543 0.519 0.497 0.535 0.507 0.480 0.456 0.432 0482 0.452 0.425 0.400 0.376 0434 0404 0.376 0351 0.327 EXHIBIT 128-2 Present Value of an Annuity of $1 in Arrears: 1/(1-(1/(1+r)^)) Periods I 2 9% 10% 11% 0917 0909 0.901 1.759 1.736 1.713 3 4 3.170 3.102 S 6 7 6.002 8 9 7435 7.108 6.802 10 8.111 7.722 7360 7024 11 8760 5306 7.887 12 9.385 8.363 8.384 13 9.986 9394 8.853 14 15 16 17. 18 19 20 8514 21 8.649 22 8.772 23 8.883 24 8.985 25 26 27 28 29 30 40 20% 21% 4% 59 65 7% 85 15% 12% 13% 17% 149 18% 19% 16% 0.833 0.826 0.820 0.962 0.952 0.943 0.935 0.926 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 1886 1859 1.566 1547 1.833 1808 1.690 1.783 1668 1605 1.647 1.626 1528 1.509 1492 1585 2.775 2.723 2.673 2.624 2577 2.331 2487 2.444 2.402 2.361 2322 2.283 2.246 2.210 2.174 2.140 2.106 2074 2042 3.630 2.540 3546 3.465 3387 3.312 3.240 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.991 2.926 2.864 4.452 4.329 4212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3058 3.092 3326 3.245 3.167 3410 5242 5.076 4.917 4.767 4.623 4.486 3.589 3498 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3605 3508 5.786 5.206 3.706 5.582 5.389 5.033 3.922 3.812 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.726 3.619 3.954 3.837 6.733 6.463 6.210 5971 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 4.031 6.315 3.905 3.786 6247 5.759 5.537 5.328 4946 4.772 4.607 5.995 5.132 4.451 4.303 4.163 4.659 6.145 5.889 5.650 5426 5.216 5019 4.833 4.339 6.710 6418 4.192 4.054 3.923 4.494 7499 7.139 6.805 6.495 6.207 5.938 5.687 5453 5.234 5029 4.836 4.656 4486 4.327 4.177 4.035 7.943 7.536 7,161 6.814 6492 6.1941 5918 5.660 5.421 5.197 4.988 4.793 4.611 4439 4.278 8.358 7.904 7.487 7.103 5.342 6.750 6424 6.122 5.842 5.583 5.118 4.910 4.715 4533 4.362 6002 5.008 4.611 4802 10.563 9.899 9.295 8.745 8244 7.786 7.367 6.982 6.628 6.302 5.724 5.468 11.118 10.380 9.712 9.108 8559 8.061 7.606 7.191 6.811 6.462 6.142 5.847 5.375 5.324 5.092 4.876 4.675 4489 11.652 10.838 10.106 9.447 8.851 8.313 7824 7379 6.974 6.604 5.405 5.162 4.938 4.730 4.536 6.265 5.954 5.668 4.391 12.166 11.274 10477 9.763 9.122 8544 8.022 7549 7.120 6.729 6.373 6047 5.749 5475 5.222 4.990 4.775 4.576 4.608 4419 4.243 4.080 3.928 12.659 11.690 10.828 10.059 9372 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812 4.635 4.442 4.263 4843 13.134 12.085 11.158 10.336 9.604 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5316 5.070 8.950 8.365 4.279 13.590 12.462 11.470 10.594 9.818 9.129 7.963 7469 7025 6.259 5929 5.628 5.353 5.101 4.870 4.657 4460 6.623 4476 4.292 4.675 14.029 12.821 11.764 10836 10017 9.292 8.075 7562 5.973 5.665 5384 5.127 4.891 7.102 6.687 6312 5.696 4.909 4.690 4488 8.176 7.645 7.170 6.743 6.359 6011 5410 5.149 14451 13.163 12.042 11.061 10.201 9442 8.266 7.718 7.230 6.792 6.399 4.499 14.857 13.489 12.303 11.272 10.371 9.580 6044 5.723 5432 5.167 4.925 4.703 8.348 7.784 7.283 6.835 15.247 13.799 12.550 11.469 10.529 9.707 6.434 4507 6.073 5.746 5.451 5.182 4.937 4.713 7.330 6.873 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 6.464 6.097 5.766 5.467 5.195 4.721 4.948 4514 4.323 4.147 8.488 7.896 7.372 6.906 6.491 4.328 15.983 14375 13.003 11.826 10.810 9.929 9.161 6.118 5.783 5.480 5.206 4.956 4.728 4.520 4.151 3.988 8.548 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 7409 6.935 6.514 6.136 5.798 5492 5.215 4.154 4.964 4.734 4.524 4.332 3.990 8.602 7.984 2441 16.663 14.898 13.406 12.137 11.051 10.116 9.307 6.961 6.534 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 8.650 8.022 16.984 15.141 13591 12.278 11.158 10.198| 9.370 7470 6.983 6.551 6.166 5.820 5.510 5.229 4.531 4.975 4.743 4.337 4.159 3.994 8.694 8.055 7496 6.566 6.177 7.003 4.746 5.829 5.517 5.235 4.979 4.534 17.292 15372 13.765 12.409 11.258 10.274 9427 4.339 4.160) 3.995 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4544 4.347 19.793 17.159 15.046 13.332 11.925 10.757 9.779 4.166 3.999 22% 23% 24% 25% 0.813 0.806 0.800 1474 1457 1440 2011 1981 1.952 2.494 2448 2.404 2.362 2.803 2.745 2.689 3.020 2.951 3.416 3.327 3.242 3.161 5.229 4432 4.357 3.566 3.463 3.799 3.682 3571 3.902 3.776 3.656 4.127 3.985 3.851 3.725 4053 3.912 3.780 4.203 4.265 4.108 3.962 3.824 4315 4.15) 4.001 3859 4.189 4.033 3887 4219 4059 3910 3518 3.421 3329 3.673 4097 3.942 4.110 3.954 4.121 3963 4.302 4.130 3.970 4311 4.137 3.976 4318 4.143 3.981 3.985