Mer Company is considering an investment opportunity with the following expected net cash infows: Year 1, $270,000 Year 2, $175,000 Year 3, $130,000. The company uses a discount rate of 8% and the initial investments $330.000 Click the icon to view Present Value of $1 table) Click the icon to view Present Value of Ordinary Annuity of $1 table) Calculate the NPV of the investment Should the company invest in the project? Why or why not? Use the fatowing table to calculate the net present value of the project (Enter any factor amounts to three decimal places. XXXXX) Years Year 1 Present value of each year's Info: (1) Year 2 Present value of each year's inflow in-7) Year 3 Present value of each year's inflow (31 Total PV of cash inflows Net Cash Infow PV Factor Present Value Using the NPV as the basis of its decision, Mer Company consider the vede stment ue of $1 Reference Should t Present Value of $1 Periods Period 1 1% 3% 2% 0.990 0.980 0.971 0.962 0.952 4% 5% 6% 7% 8% 0.943 0.935 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 e net pre Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.794 0.772 0.751 0.712 0.735 0.708 0.683 0.636 0.681 0.650 0.621 0.567 12% 20% 9% 14% 10% 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 0.675 0.658 0.641 0.609 0.579 0.592 0.572 0.552 0.516 0.482 0.519 0.497 0.476 0.437 0.402 15% 16% 18% Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 year's Inflo year's inflo Period 7 year's inflo Period 10 0.933 0.871 0.813 0.760 0.711 0.665 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.905 0.820 0.744 0.676 0.614 0.558 0.623 0.582 0.544 0.508 0.463 ws the project Period 11 0.896 0.804 0.722 0.650 0.585 0.527 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0415 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.475 0.429 0.397 0.368 0.340 0.315 its decision, Mi Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 Period 20 0.820 0.673 0.554 0.456 0.377 0,312 Period 21 0.811 0.660 0.538 0.439 0.359 0.294 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 Period 23 0.795 0.634 0.507 0.406 0.326 0.262 0.292 0270 0.250 0.277 0.232 0.258 0.215 0.242 0.226 0.211 0.630 0.596 0.564 0.507 0.583 0.547 0.513 0.452 0.540 0.502 0.467 0.404 0.500 0.460 0.424 0.361 0.422 0.386 0.322 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054. 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 0.456 0.432 0.410 0.370 0.335 0.400 0.376 0.354 0.314 0.279 0.351 0.327 0.305 0.266 0.233 0.308 0.284 0.263 0.225 0.194 0.270 0.247 0.227 0.191 0.162 ld t Present Value of Ordinary Annuity of $1 Periods Period 1 1% 2% 3% Period 2 Period 3 0.990 0.980 0.971 1.970 1.942 2.941 2.884 2.829 1.913 et pre Period 4 Period 5 Inflo s inflo 6.002 6.733 Period 9 s inflo Period 10 project cision, Mi Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 15% 14% 12% 8% 9% 10% 4% 5% 7% 6% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 2.106 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.605 Period 8 7.652 7.325 7.020 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.192 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.421 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5842 5.583 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.550 8.061 7.606 18% 16% 0.862 0.847 0.833 20% 1.605 1.566 1.528 5.019 5.029 -4.656 4.327 5.197 4.793 4.439 5.342 4.910 4.533 6.628 6.002 5.724 5.468 5.008 4.611 6.811 6.142 5.847 5.575 5.092 4.675 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.812 5.877 5.316 4.844 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.198 18.046 16.351 14.877 13.590 12.462 11 470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 5.234 18 857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 19.660 17.658 15 937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 6.359 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 6.792 6.399 5.973 5.384 4.891 6.011 5410 4.909 6.044 5.432 4.925 Print Done