Labeau Products, Limited, of Perth, Australia, has $28,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Investment required Annual cash inflows Single cash inflow at the end of 6 years Life of the project The company's discount rate is 16%. Invest in Project X Invest in Project Y $ 28,000 $ 28,000 $ 8,000 $ 65,000 6 years 6 years Click here to view Exhibit 12B-1 and Exhibit 12B-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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the net present value of Project X. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.) Net present value _ EXHIBIT 12B-1 1 Present Value of $1; (1+r)" Periods 4% 5% 6% 7% 8% 9% 1 0.962 0.952 0.943 0.935 0.926 0.917 10% 11% 0.909 0.901 2 0.925 0.907 0.890 0.873 0.857 0.842 3 0.889 0.864 0.840 0.816 0.794 0.772 4 0.855 0.823 0.792 0.763 0.735 5 0.822 0.784 0.747 0.713 0.681 0.650 6 0.790 0.746 0.705 0.666 0.630 7 0.760 0.711 0.665 0.623 8 0.731 0.677 0.627 0.582 9 0.703 0.645 0.592 0.708 0.683 0.621 0.593 0.596 0.564 0.535 0.583 0.547 0.513 0.482 0.540 0.502 0.467 0.434 0.544 0.500 0.460 0.424 0.391 0.826 0.812 0.751 0.731 0.659 10 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 11 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 12 0.625 13 0.601 0.530 0.557 0.497 0.444 0.469 0.415 0.397 0.356 0.319 0.286 14 0.577 0.505 0.442 15 0.555 0.481 0.417 16 0.534 17 0.513 0.436 18 0.494 19 0.475 20 0.456 0.377 0.331 0.277 0.312 0.368 0.388 0.340 0.299 0.263 0.362 0.315 0.275 0.458 0.394 0.339 0.292 0.371 0.317 0.270 0.416 0.350 0.296 0.250 0.396 0.326 0.290 0.239 0.258 0.232 0.209 0.252 0.218 0.188 0.232 0.693 0.675 0.613 0.592 0.572 0.567 0.543 0.519 0.497 0.507 0.480 0.456 0.432 0.410 0.390 0.452 0.425 0.400 0.376 0.354 0.333 0.404 0.376 0.351 0.327 0.305 0.285 0.361 0.333 0.308 0.322 0.295 0.270 0.247 0.227 0.208 0.287 0.261 0.237 0.215 0.195 0.178 0.257 0.231 0.208 0.187 0.168 0.152 0.229 0.204 0.182 0.163 0.145 0.130 0.205 0.181 0.160 0.141 0.125 0.111 0.183 0.160 0.140 0.123 0.108 0.095 0.163 0.141 0.123 0.107 0.093 0.081 0.231 0.198 0.170 0.146 0.125 0.108 0.212 0.180 0.153 0.130 0.111 0.095 0.194 0.164 0.138 0.116 0.098 12% 13% 14% 15% 16% 0.893 0.885 0.877 0.870 0.862 0.797 0.783 0.769 0.756 0.743 0.712 0.658 0.636 17% 0.855 0.731 0.641 0.624 0.552 0.534 0.476 0.456 0.284 0.263 0.243 0.093 0.080 0.069 0.258 0.215 0.178 0.149 0.124 21 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.112 22 0.422 0.342 0.278 0.226 0.184 0.150 23 0.406 0.326 0.262 0.211 24 0.390 0.310 0.247 0.197 0.170 0.158 25 0.375 0.295 0.233 0.184 0.146 0.138 0.126 0.116 26 0.361 27 28 29 0.321 0.243 30 40 0.281 0.220 0.172 0.135 0.106 0.347 0.268 0.207 0.161 0.125 0.098 0.333 0.255 0.196 0.150 0.185 0.141 0.107 0.082 0.308 0.231 0.174 0.131 0.099 0.075 0.208 0.142 0.097 0.084 0.066 0.076 0.060 0.116 0.090 0.069 0.054 0.042 0.063 0.048 0.067 0.046 0.032 0.057 0.022 0.081 0.069 0.059 0.083 0.070 0.060 0.051 0.104 0.087 0.073 0.061 0.051 0.043 0.093 0.077 0.064 0.053 0.044 0.037 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.102 0.082 0.066 0.053 0.043 0.035 0.028 0.023 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0.053 0.042 0.033 0.026 0.021 0.017 0.047 0.037 0.029 0.023 0.018 0.014 0.033 0.026 0.020 0.016 0.012 0.037 0.029 0.022 0.017 0.014 0.011 0.044 0.033 0.026 0.020 0.015 0.012 0.009 0.015 0.011 0.008 0.005 0.004 0.003 0.002 EXHIBIT 12B-2 Present Value of an Annuity of $1 in Arrears; 1/r(1-(1/(1+r)^n)) Periods 4% 5% 6% 1 0.962 2 1.886 3 2.775 0.952 0.943 1.859 1.833 1.808 2.723 2.673 2.624 4 3.630 3.546 3.465 3.387 5 4.452 4.329 4.212 4.100 3.993 6 5.242 5.076 4.917 4.767 4.623 7 6.002 5.786 5.582 5.389 8 6.733 6.463 6.210 5.971 9 7.435 7.108 6.802 6.515 6.247 10 8.111 7.722 7.360 7.024 6.710 6.418 6.145 11 8.760 8.306 7.887 7.499 7.139 6.805 6.495 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 2.577 2.531 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 5.206 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 5.889 5.650 5.426 5.216 5.019 6.207 5.938 4.833 4.659 5.687 5.453 5.234 5.029 4.836 12 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 13 9.986 9.394 8.853 8.358 7.904 7.487 14 10.563 9.899 9.295 8.745 8.244 7.786 7.367 7.103 6.750 6.982 6.424 6.122 5.842 5.583 5.342 5.118 15 11.118 10.380 9.712 9.108 8.559 8.061 7.606 16 11.652 10.838 10.106 9.447 8.851 8.313 7.824 17 12.166 11.274 10.477 9.763 9.122 8.544 8.022 18 12.659 11.690 10.828 10.059 9.372 8.756 8.201 19 13.134 12.085 11.158 10.336 9.604 8.950 8.365 20 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 21 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 22 14.451 13.163 12.042 11.061 10.201 9.442 8.772 8.176 7.645 23 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 7.718 6.628 6.302 6.002 5.724 7.191 6.811 6.462 7.379 6.974 6.604 7.549 7.120 6.729 7.702 7.250 6.840 7.839 7.366 6.938 7.469 7.025 7.562 7.102 7.170 7.230 5.468 5.229 6.142 5.847 5.575 5.324 6.265 5.954 5.668 5.405 6.373 6.047 5.749 5.475 6.467 6.128 5.818 5.534 6.550 6.198 5.877 5.584 6.623 6.259 5.929 5.628 6.687 6.312 5.973 5.665 6.743 6.359 6.011 5.696 6.792 6.399 6.044 5.723 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 25 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 7.330 26 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7.372 6.906 27 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 28 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7.984 29 30 16.984 15.141 13.591 12.278 11.158 10.198 9.370 17.292 15.372 13.765 12.409 11.258 10.274 9.427 40 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.650 8.694 8.951 6.873 6.464 6.491 6.935 6.514 6.136 5.798 7.441 6.961 6.534 6.152 5.810 8.022 7.470 6.983 6.551 6.166 5.820 8.055 7.496 7.003 6.566 6.177 5.829 8.244 7.634 7.105 6.642 6.233 5.871 6.097 5.766 6.118 5.783