lgnore income taxes in this problem.) The management of Mashiah Corporation is considering the purchase of machine that would cost $370,000 would last for 7 years, and would have no savage value. The machine would reduce labor and other costs by $118.000 per year. The company requires a minimum pretax return of 11% on all investment projects Click here to view Ext 8.1 and Exhib 89 2 to determine the appropriate discount factors using tables The present value of the annual cost savings of $110.000 is closest to: $997.232 $826,000 $344092 $556.046 EXHIBIT 8B-1 Docent Value of SI- Present Value of St: 01 + 1 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.789 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.640 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0,512 4 0.855 0.823 0.792 0.703 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0,499 0.42 0.467 0,451 0.437 0423 0.410 5 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.503 0567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 6 14 18 19 0.790 0.746 0.705 0.686 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0275 0.262 0.760 0.711 0.665 0.623 0.583 0.547 0,513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0 222 0.210 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0,305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.18 0.167 0.155 0.144 0.134 0.676 0.614 0.558 0.508 0463 0.422 0.386 0.362 0.322 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 0.650 0.585 0.527 0.475 0429 0.388 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 0.557 0.497 0.444 0.397 0.356 0.319 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 0.442 0.3BB 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.008 0.078 0.069 0.052 0.055 0.049 0.044 0.555 0.481 0.417 0.362 0.315 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 0.458 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 0.042 0.036 0.032 0.028 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.000 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.025 0.023 0.494 0.416 0.350 0.296 0.250 0.212 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 0.475 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 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.067 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.016 0.014 0.012 0.439 0.359 0.294 0 242 0.199 0.164 0.135 0.112 0.003 0.077 0.034 0.053 0.044 0.037 0.031 0,028 0.022 0.018 0.015 0.013 0.011 0.009 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0,046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0,011 0.009 0.007 0.406 0.326 0.262 0.211 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 0.390 0.310 0.247 0.19% 0.158 0.126 0.102 0.082 0.066 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 0.063 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.000 0.007 0.006 0.005 0.004 0.003 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0.011 0,009 0.007 0.006 0.005 0.004 0.003 0.002 0.333 0.265 0.196 0.150 0.116 0.000 0.069 0.054 0.042 0.033 0.026 0,020 0,016 0.012 0.010 0.008 0.000 0.005 0.004 0.003 0.002 0.002 0.321 0.243 0.185 0.141 0.107 0.002 0.003 0.048 0.037 0.029 0.022 0.017 0.014 0.011 0.008 0.000 0.005 0.00 0.003 0.002 0.002 0.002 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0.026 0.020 0,015 0.012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0.208 0.142 0.007 0.067 0.046 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 20 24 30 40 EXHIBIT 8B-2 Present Value of an Arruity of $1 in Arrears; 4(1 - atel Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0 2 3 2 .962 1.886 .775 3.630 4.452 0.952 0943 1.859 1.833 2.723 2.673 3.546 3.465 4.329 4.212 0935 1.808 2.624 3.387 4.100 0.926 1.783 2.577 3,312 3.993 0.917 0.909 0.001 0.893 O 850 877 0.870 0,862 0.855 0.847 0.840 0.833 0.826 0.820 0.313 0.806 0.800 1.759 1.736 1.713 1.090 1.668 1.647 1.625 1.605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 2.531 2.487 2.444 2.402 2.361 2322 223 2246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1,952 3240 3.170 3.102 3.037 2.074 2.914 2155 2.700 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 4 5 8 5242 6.002 6.733 .435 8.111 5.0764.917 5.786 5.582 6.463 6.210 7.108 6.802 7.722 7.360 4.767 5.389 5.971 6.515 7.024 4.623 5.206 5.747 6.247 6.710 4.486 4.355 4.231 4.111 3.998 3.889 3784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 5.033 4.868 4.712 4.564 4.423 4. 20 4.100 4.000 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3242 3.161 5.535 5335 5.146 4 OG 4.799 439 4487 4344 4.207 4.078 3 954 3837 3.726 3 619 3.518 3.421 3.329 5.995 5.759 5.537 5328 5.132 4946 4.772 4.607 4.451 4 303 4.163 4.031 3.905 3.786 3.673 3.586 3.463 6.418 6.145 5.899 5.650 5.426 5216 5.019 4833 4.659 4.494 4 339 4.192 4.054 3.923 3.799 3.682 3.571 9 7 12 14 15 16 17 18 19 20 21 8.760 8.306 7.887 7.499 761396.805 6.495 6.207 5.93 5.687 5.453 5.234 5,029 4.836 4.656 4.486 4.327 4.177 4,035 3.902 3.776 3.656 9.385 8.883 8.384 7.943 7.536 7.161 6.314 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 9.986 0.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 6.122 5,842 5583 5.342 5.118 4.910 4.715 4,533 4.362 4 203 4.053 3.912 3.780 10.563 9.899 9.295 8.745 8.244 7.788 7367 6,002 0,628 6,302 0.002 5.724 5.408 5.229 5.000 4.802 4.611 4.432 4.265 4.10B 3.962 3.824 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4.489 4.315 4.153 4.001 3.859 11.652 10.838 10.106 9447 051 8313 7024 7379 0.974 6.604 6.265 5 954 5.668 5.405 5.162 4.938 4.730 4.538 4.357 4.189 4.033 3.887 12.165 11.274 10.477 9763 9.122 8544 8.022 7549 7.120 6.729 6.373 6 047 5.749 5.475 5.222 4.990 4.775 4.575 4.391 4.219 4.059 3.910 12.659 11.690 10.828 10.059 9.372 .755 8.2017 702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4812 4.608 4.419 4243 4080 3.928 13 134 12.085 11.158 10336 9.604 8950 8.365 7809 716 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 4.442 4.263 4,097 3942 13500 12402 11.470105949818 9.129 8.514 703 7.400 7.025 0.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4.460 4.279 4,110 3.954 14.020 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7.562 7.102 6,687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 14.451 13.163 12.042 11.061 10.201 9.442 8.772 8.178 7,645 7.170 6.743 6.350 6.011 5.696 5.410 5.149 4,900 4.600 4.488 4.302 4.130 3.970 14 57 13.489 12.303 11.272 10.371 9580 8083 8.200 7.718 7.230 0.792 8.390 6044 5.723 5.432 5.167 4.925 4.703 4.499 4.311 4.137 3.976 15 247 13.799 12.550 11.409 10.529 9.707 8.985 M 7.7134 7.283 6.15 .434 6.073 5.746 5.451 5.102 4.937 4.713 4.507 4.318 4.143 3.981 15,822 14.094 12.783 11,654 10.675 9.8239.077 8.422 7,343 7.330 6.873 6.484 6.097 5.766 5.467 5.195 4.040 4.721 4.514 4.323 4.147 3.085 1593 14.375 13.00 11.026 10.810 99209.161 40 7.00 7.372 6.906 6.491 8.118 5.783 5.480 5.200 4.50 4.728 4.520 4.328 4.151 3.988 16 330 14.543 13211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 6.935 6.514 5.136 5.798 5.492 5 215 4.14 4.744 4.524 4.332 4.154 3.900 16.6 14.898 13.406 12.137 11.051 10.118 9.307 8.602 7984 7.441 6.961 6 534 5.152 5.810 5.502 5.223 4.970 4.739 4.529 4305 4.157 3.092 1608 15.141 132591 12278 11.158 10.1989 370 8.650 3.022 7.470 6.983 6.551 6.166 5.820 5510 5229 4.975 4.743 4.531 4.337 4.159 3.094 17.292 15,372 13.766 12.400 11.258 10.274 9.427 8.694 8.055 7 496 7.003 6.506 6.177 5.829 5.517 5.235 4.979 4.746 4.534 4339 4.160 3.995 10.703 17.150 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.907 4.760 4.544 4.347 4.100 3.999 23 24 25 26 27 28 29 30 40