mecliuLLUI.LUWLULIT amework Saved Help Save & E Ches Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 9% return from its Investments. Investment Al $(380,000) Initial investment Expected net cash flows in Year 1 Year 2 Year 3 190,000 136,000 115,000 QS 11-12 Net present value, with salvage value LO P3 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $24,500. Compute the investment's net present value. (PV of $1. FV of $1. PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Cash Flow Present Value of 1 Present Value at 9% $ 190,000 136,000 115.000 441 000 Amount invested Net present value TABLE B.1" Present Value of 1 p=1/(1 + ir Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% 0.9901 0.9804 09803 0.9612 0.9706 0.9423 09610 0.9239 0.9515 09057 0.9420 08880 0.9327 0.8706 0.9235 0.8535 091430 .8368 0.9053 0.8203 0.8963 0.8043 08874 0.7885 08787 0.7730 018200 0.7579 08613 0.7430 0.8528 0.7284 0.8414 0.7142 0.8350 0.7002 0.8277 0.6864 0.8195 0.6730 0.7798 0.6095 0.7419 0.5521 0.7059 0 5000 0.6717 0.4529 09709 0.9615 0.9524 0.9434 09346 09259 0.9174 0.9091 0.8929 09426 09246 090200 89000 8734 08573 0.8417 0.8264 0.7972 09151 08890 0 8638 08296 03163 07928 0.7722 0.7513 0.7118 08985 0 8543 08227 0.7921 0.7629 07350 0.7084 06830 0.5355 0.8626 03219 0. 75 0.7473 07130 066 0.6499 0620905674 08375 0.7903 0.7462 0.7050 0.6663 06302 0.59630 5645 0.5066 0.8131 0.7599 0.7107 0.5651 0.6227 05835 0.5470 0.5132 0.4523 0.7894 0.7307 0.6768 0.5274 0.5820 0.5403 0.5019 0466504039 0.7664 0.7026 0.6446 0.5919 054390 5002 0.4604 0.4241 0.3606 0.7441 0.6756 0.6139 05584 0.5083 04632 0.4224 0.3855 0.3220 0.7224 06495 0 5847 0.5268 0 .4751 04289 0.3875 0.3505 0.2875 0.7014 0.6246 05568 049700 4440 0397102555 03186 0.2567 6810 0.6006 05203 04688 04150 0.3677 0.3262 0 2897 0.2292 0165110577505051 04473 0.3878 03405 0 2992 02633 0.2046 0.5419 05553 0 4310 04173 0.3624 03152 0.2745 0 2394 0.1827 0.6232 0533904581 2 02935 0.3387 02919 0.2519 02176 0.1631 0.6050 05134 0.4363 0.3714 0.3166 0 2703 0 2811 01978 0.1456 0.5874 0.4936 0.4155 0.35030.29590 25020 2120 0.1799 0.1300 0.5703 0.4746 0.3957 03305 0.2765 02317 0.1945 0.1635 0.1161 0.5537 0.1784 0.1486 0.1037 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0923 0.0588 0.4120 03033 0.2314 0.1741 0.1314 0.0994 0.0754 0.0573 0,0334 03554 0.2534 0.1813 0.1301 0.0937 00676 0.0490 00156 00189 0.3066 0.2083 0.1420 0.0972 0.0668 0.0460 0.0318 0.0221 0.0107 0.8696 0.7561 0.6575 0.5718 04972 0.4323 0.3759 0.3259 02843 0.2472 02149 0.1859 0.1625 0.1413 0.1229 0.1069 00929 00808 0.0703 0.0611 0.0304 0.0151 0.0075 0.0037 R03 "U do u c Using the m 12 and e nt Forum How 5 (12 som periode dam would you need to e the unde 0.556 Yes would need sine 2.74 5.000 in you 3000x05565) TABLE B.2 Future Value of 1 f=(1+i) Rete Periods 1% 2% 3% 4% 5% 6% 7% 8% 10% 12% 15% 1.0000 1,0000 1.0700 1.1449 1.2250 1.3108 1.4026 1.5007 1.6058 1.7182 18385 1.0000 1.0100 1.0201 1.0303 1.0406 1.0510 6 1.0615 1.0721 1.0829 1.0937 10 1.1046 1.1157 12 1.1268 131.1381 14 1.1495 15 1.1610 1.1726 1.1843 1.1961 1.2081 1.2202 1.2824 13478 1.4166 1.4889 10000 1.000 1.0200 1.0300 1.0404 1.0609 1.0612 1.0927 1.0824 1.1255 1.1041 1.1593 1.1262 1.1941 1.1487 1.2299 1.1717 1.2668 1.1951 1.3048 1.21901.3439 1.2434 1.3842 1.2682 1.4258 1.2936 1.4685 1.3195 1.5126 1.3459 1.5580 1.3728 1.6047 1.4002 1.6528 1.4282 1.7024 1.4568 1.7535 1.485918061 1.6406 2.0938 1.811424273 1.99992.8139 2.2080 3.2620 1.0000 10400 1.0816 1.1249 1.1699 1.2167 1.2653 13159 1.3686 1.4233 1.4802 1.5395 1.6010 1.6 1.7317 1.8009 1.8730 19479 20258 2.1068 2.1911 26658 3.2434 3.9461 4.8010 1.0000 1.0000 1.0500 1.0600 1.1025 1.1236 1.1576 1.1910 1.2155 1.2625 1.2763 1 .3382 1.3401 1.4185 1.4071 1.5036 1.4775 1.5938 1.55131.6895 1.6289 1.7908 1.7103 1899 1.79592.0122 1.8956 21329 1.9799 2.2609 2.0789 2.3966 2.1829 2.5404 2.2920 2.6928 2.4066 28543 28543 2.5270 3.0256 26533 3.2071 3.3864 42919 42919 4.3219 5.7435 5.5160 7 6861 7.0400 10.2857 1.9672 2.1049 2.2522 2.4098 2.5785 2.7590 2.9522 3.1588 33799 3.6165 3.8697 5.4274 .6123 10.6766 14.9745 1.0000 10800 1.1664 1.2597 13605 1.4693 1.5869 1.7138 1.8509 1.9990 2.1589 23316 25182 2.7196 2.9372 3.1722 3.4259 3.7000 3.9960 43157 4.6610 6.8485 10.0627 14.7853 21.7245 1.0900 1.1881 1.2950 1.4116 1.5386 1.6771 1.8280 1.9926 2.1719 2.3674 2.5804 2.8127 3.0658 3.3417 3.6425 3.9703 4.3276 47171 5.1417 5.6044 8.6231 13.2677 20.4140 31.4094 1.0000 1.1000 1.2100 1.3310 14641 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 2.9531 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 10.8347 17.4494 28.1024 45.2593 1.0000 1.1200 1.2544 1.4049 1.5735 1.7623 1.9738 2.2107 2.4760 2.7731 3.1058 3.4785 3.8960 4.3635 4.8871 5.4736 6.1304 6 8660 7.6900 8.6128 9.6463 17.0001 29 9599 52.7996 93.0510 1.0000 1.1500 1.3225 1.5209 1.7490 2.0114 23131 26600 3.0590 3.5179 4.0456 4.6524 5.3503 6.1528 7.0757 8 1374 93576 10.7613 12.3755 14.2318 16.3665 32.9190 66.2118 133. 1755 267.8635 7 Used to compute the future value of known present amount. For example: What is the the factors of and quarterly kids and quarterly increst rate of col d value of 53.000 invested today at compounded quarterly for 5 years? Using the factor is 14559. The accumulated is 54.457.700.000 x 1.45392 TABLE B.3 Present Value of an Annuity of 1 Rate Periods 15 6% 1 9% 10% 12% 15% 0 .9346 1 8080 0.9901 1.9704 29410 3.9020 4.8534 5.7955 6.7282 7.6517 8.5660 9.4713 10.3676 11.2551 12.1337 13.0037 13. 8651 14.7179 15.5623 163983 17.2260 180456 22.0232 25.8077 29.4086 328347 0.9804 0.9709 1.9416 1.9135 2883928286 3.8077 3.7171 471354.5797 5.6014 5.4172 6.4720 6.2303 7.3255 7.0197 8.1622 7.7861 8.9826 8.5302 9.7868 9.2526 10.5753 9.9540 11 3084 10.6350 12.1062 11.2961 12.8493 11.9379 13.5777 12.5611 14.291913.1661 14.9920 13.7535 15 6785 14 3238 16.3514 14.8775 19.5235 17.4131 22.3965 19.6004 249986 21.4872 27.3555 23.1143 0.9615 0.9524 0.9434 1.8861 18594 18234 2.7751 27232 26730 3.6299 3.5460 34651 4.4518 4.3295 4.2124 5.2421 5.0757 4.9173 60021 5.7864 55824 6.7327 6.4632 6.2098 7.4353 7.1078 6.8017 8.1109 7.7217 7.3601 8.7605 23064 78869 9.3851 8633 83838 99856 BBS27 10.5631 9.8986 9.2950 11.1184 103797 9.7122 11.6523 10.8378 10.1059 12. 1657 11.2741 10.4773 126593 11.6896 10.8276 13.1339 12 0853 11.1581 13590312 4622 11.4699 15.6221 14.093912.7834 17.2920 15.3725 13.7648 18.6666 16.3742 14.4982 19.7928 17.1591 15.0463 33872 4.1002 4.7665 5.3893 5.9713 6.5152 70236 74987 79427 8 3577 87455 9 1079 9.4666 9.7622 10.0591 10 3356 10.5940 11.6536 12.4090 129477 13.3317 0.9259 09174 0.9091 0.8929 0.8696 1.7833 1.7591 1.7355 15901 15257 25771 25313 2 1869 24018 22832 3.3121 3.2397 3.1699 3.0373 28550 39927 38897 37908 36048 33522 4.62294.48594.3553 4.1114 3.7845 5.2064 5.0330 4.8684 4.5638 4.1604 5.7466 55348 5.3349 4.0676 4.4973 6.2469 5.99525.7590 5.3282 4.7716 6.7101 6.4177 6.1446 5.6502 5.0188 7.1390 6.8052 6.4951 5.9377 5.2337 75361 7.1607 6.8137 6.1944 5.4206 7.0038 7.48697.1034 6.4235 5.5831 8.2442 7.78627.3667 6.62825.7245 85595 8.0607 76061 6.8109 5.8474 38514 8.3126 78237 69740 5.9542 9.1216 85436 0216 7.1196 60472 9.3719 8.7556 8.2014 7.2497 6.1280 9.6036 8.9501 8.3649 73658 6.1982 9 8181 91285 8.5136 74694 6.2593 10.6748 9.8226 9.0770 7.8431 6.4641 11.2578 10.2737 9.42698.0552 6.5660 11.6546 10.5668 9.6442 8. 1755 66166 11.9246 10.7574 9.7791 8.2438 6.6418 Used to the p l of 20 per year for years anuman aces of qual 9 PV es made the end of each period. Force What is the 641772 per year for 10 years is the equat 215 1 f=[(1 + i)" - 1Jfi TABLE B.4 Future Value of an Annuity of 1 Rate 7% Periods 18 2% 2 4 % 5% 6% 8% 9% 10% 12% 15% 10 1.0000 10000 10000 10000 10000 10000 10000 1.0000 1.0000 1.0000 10000 2010020200 20300 20000 20500 20500 20700 20800 2.0900 21000 2.1200 20201 206042000921216 21525 3 1826 22169 3.2464 3 2781 3.3100 3.3744 4.0604 4.1216 4.1835 42465 43101 43746 4.4399 4506145731 454104.7793 5.1010 5.2040 5.3091 5.4163 55256 5.6371 5.7507 5.8666 59847 61051 6.3528 6.1520 6.3081 6.4684 6.6330 6.80196.9753 7.1533 73359 75233 7.7156 8.1152 72135 74343 76625 78983 1420 8.3938 8 65.00 89228 9.2004 9.4872 10.0890 8.2857 25830 8.8923 92142 95491 9.8975 10.2598 10.6366 11.0785 11.4359122997 9.3685 9.7546 10.1591 10.5828 11.026 11:4913 11.0780 12.4876 13.0210 13 5795 14.7757 10.4622 10.9497 11.4639 12.0061 12.5779 13.1808 13.8164 14.4866 15.1929 15.9374 17.5487 11.5668 12 1687 128078 12486414 2068 149716 157836 16 6155 175603 18 5312 20 6546 12.6825 13.4121 14.1920 15.0258 15.9171 16,8699 17.8885 1 8 9771 20.1407 21.3843 24.1331 13.8093 14.6803 156178 16.6268 17.7130 18.8821 201406 21.4953 22.9534 24.5227 28.0291 14.9474 15.9739 170863 18.2919 19.5986210151 225505 24.2149 26.0192 27.9750 32.3926 16 0969 17 2934 18 5999 20.0236 215786 232760 25 1290 27 1521 29 360931.7725 37 2797 17.2579 18.6393 20.1569 21.8245 23.6575 25.6725 27.8881 30.3243 33.0034 35.9497 42.7533 18.4304 20.0121 21.7616 23.6975 25.8404 28212930 8402 33.7502 36.9737 40.5447 48.8837 19 5147 214123 234144256454 28 1324 30 9057 33 9990 37 4502 41301345 5992 55 7497 20.8109 22.8406 25.1169 27.6712 30.5390 0.7500 37.3790 41.4463 460185 51.1591 63.4397 22.0190 24.2974 26.870429.7781 33,0660 36.7856 40.9955 45.7620 51.1601 57.2750 72.0524 28.2432320303 36.459341.6459 47.7271 548645 63 2490 73.1059 84.700998.3471 133.3339 34 7849 405631 475754560849664288 79.0582944608 113.2832 135.3075 164 4940 241.3327 41.6603 49.9945604621 73.65229032031114348 1382369172.3168 215.7108 271.0244 431.6635 18.8864 60.0020 75.001395.0255 120.7998 154.7620 199.6351 259.0565 337.88244425926 767.0914 1.0000 2.1500 3.4725 49934 6.7424 8.7537 11.0668 13.7268 16.7858 20.3037 243493 29.0017 34.3519 40.5047 47.5804 55.7175 65.0751 75.8364 88 2118 102.4436 212.7930 434.7451 81.1702 1,779,0903 16 17 19 e o d wa the f r res o quals the the end of the 73 SM Boran Withe value of 40 per year for years 2004G711591