Marigold recently invested in a project with a 3-year life span. The net present value was $6400 and annual cash inflows were $16000 for year 1: $18000 for year 2; and $20000 for year 3. The initial investment for the project, assuming a 15% required rate of return, was PV of an Annuity Present Value Year of 1 at 15% 1 0.870 2 0.756 3 0,658 of 1 at 15% 0.870 1.626 2.283 $40580. $34244 $34288 $29132 TABLE 3 Present Value of 1 Periods 1 2 3 4 4% 96154 .92456 .88900 -85480 82193 1.79031 .75992 .73069 .70259 67556 64958 62460 60057 57748 .55526 53391 .51337 49363 47464 .45639 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 5% 95238 .90703 .86384 .82270 .78353 .74622 .71068 67684 .64461 .61391 58468 I 55684 .53032 .50507 48102 45811 43630 41552 .39573 37689 6% 94340 .89000 .83962 79209 74726 70496 .66506 .62741 .59190 55839 52679 49697 46884 ,44230 41727 39365 37136 35034 33051 31180 7% 0.93458 0.87344 0.81630 0.76290 0.71299 0.66634 0.62275 0.58201 0.54393 0.50835 8% 92593 .85734 79383 73503 68058 63017 .58349 54027 50025 46319 42888 39711 .36770 34046 31524 .29189 27027 25025 23171 21455 9% 91743 .84168 .77218 70843 .64993 59627 .54703 50187 46043 42241 .38753 .35554 32618 29925 27454 25187 23107 21199 .19449 .17843 10% 90909 .82645 .75132 .68301 .62092 .56447 51316 46651 ,42410 38554 35049 31863 28966 26333 23939 21763 .19785 .17986 .16351 .14864 11% 90090 -81162 173119 .65873 .59345 .53464 48166 43393 39092 35218 31728 .28584 .25751 23199 20900 18829 .16963 .15282 .13768 .12403 12% .89286 .79719 .71178 .63552 .56743 .50663 45235 40388 136061 .32197 .28748 .25668 22917 20462 .18270 .16312 .14564 13004 .11611 .10367 15% .86957 .75614 .65752 57175 .49718 43233 37594 32690 28426 24719 21494 .18691 .16253 .14133 .12289 .10687 .09293 .08081 07027 .06110 0.47509 0.44401 0.41496 0.38782 0.36245 0.33873 0.31657 0.29586 0.27615 0.25842 9% I TABLE4 Present Value of an Annuity of 1 (n) Payments 4% 5% 6% 7% 1 .96154 95238 94340 0.93458 2 1.88609 1.85941 1.83339 1.80802 3 2.77509 2.72325 2.67301 2.62432 4 3.62990 3.54595 3.46511 3.38721 5 4.45182 4.32948 4.21236 4.10020 6 5.24214 5.07569 4.91732 4.76654 7 6.00205 5.78637 5.58238 5.38929 8 6.73274 6.46321 6.20979 5.97130 9 7.43533 7.10782 6.80169 6.51523 10 8.11090 7.72173 7.36009 7.02358 11 8.76048 8.30641 7.88687 7.49867 12 9.38507 8.86325 8.38384 7.94269 13 9.98565 9.39357 8.85268 8.35765 14 10.56312 9.89864 9.29498 8.74547 15 11.11839 10.37966 9.71225 9.10791 11.65230 10.83777 10.10590 9.44665 12.16567 11.27407 10.47726 9.76322 12.65930 11.68959 10.82760 10.05909 13.13394 12.08532 11.15812 10.33560 13.59033 12.46221 11.46992 10.59401 Sa WEB OWN 8% 92593 1.78326 2.57710 3.31213 3.99271 4.62288 5.20637 5.74664 6.24689 6.71008 7.13896 7.53608 7.90378 8.24424 8.55948 8.85137 9.12164 9.37189 9,60360 9.81815 .91743 1.75911 2.53130 3.23972 3.88965 4.48592 5.03295 5.53482 5.99525 6.41766 6.80519 7.16073 7.48690 7.78615 8.06069 8.31256 8.54363 8.75563 8.95012 9.12855 10% 90909 1.73554 2.48685 3.16986 3.79079 4.35526 4.86842 5.33493 5.75902 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7.82371 8.02155 8.2 0141 8.36492 8.51356 11% 90090 1.71252 2.44371 3.10245 3.69590 4.23054 4.71220 5.14612 5.53705 5.88923 6.20652 6.49236 6.74987 6.98187 7.19087 7.37916 7.54879 7.70162 7.83929 7.96333 12% .89286 1.69005 2.40183 3.03735 3.60478 4.11141 4.56376 4.96764 5.32825 5.65022 5.93770 6.19437 6.42355 6.62817 6,81086 6.97399 7.11963 7.24967 7.36578 7.46944 15% .86957 1.62571 2.28323 2.85498 3.35216 3.78448 4.16042 4.48732 4.77158 5.01877 5.23371 5.42062 5.58315 5.72448 5.84737 5.95424 6.04716 6.12797 6.19823 6.25933