Merlin's Magic Show is a theme restaurant. The owner, Merlin Smith, is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $105,000. The equipment will have an initial cost of $430,000 and have a 5-year life. The salvage value of the equipment is estimated to be $82,000. If the hurdle rate is 10%, what is the approximate net present value? Ignore income taxes (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) TABLE 11.1A Future Value of $1 . Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 0 1.0000 10000 10000 10000 10000 10000 10000 10000 10000 1 10200 10300 10375 10400 1.0425 10500 10600 10700 1.0800 2 10404 1060910764 10816 10868 1.1025 11236 11449 11664 3 1.0612 10927 11168 1124911330 11576 11910 12250 12597 4 10824 11255 11587 11699 11811 12155 12625 1.3108 13605 5 11041 11593 12021 12167 12313 12763 13382 1.4026 1.4693 11262 11941 12472 12653 12837 13401 1.4185 15007 15869 7 11487 1.2299 12939 1315913382 1.4071 15036 1.6058 17138 11717 12668 13425 13686 13951 1.4775 15938 17182 18509 11951 13048 139281423314544 15513 16895 18385 19990 10 12190 13439 4450 14802 15162 16289 17906. 19672 21589 204859 18061 2088221911 22989 26533 3207138697 4.6610 Periods 9 10 6 1126 0 10000 10000 10000 10000 10000 10000 10000 10000 10000 1 10900 1000 1100 11200 11300 11400 1500 12000 12500 2 11881 12100 12321 12544 12769 12996 13225 14400 15625 3 12950 13310 13676 14049 14429 14815 15209 17280 19531 4 1416 14641 1516 15735 16305 16890 17490 20736 24414 5 15386 16105 1685 17623 18424 19254 2014 24883 30518 6 1677 7716 18704 19738 20820 21950 23131 29860 3.8147 7 18280 19487 20762 22107 23526 25025 26600 35832 47684 8 19926 21436 23045 24760 26584 28526 30590 42998 59605 9 21719 23579 25580 27/31 30040 32519 35179 51598 74606 10 23674 25957 28394 31058 33046 67072 40456619793162 | 20 56044 67275 80623 96453 15231 67435 16366662-6763677-62 TABLE 11.2A Present Value of $1 Periods 1 2 3 4 5 6 7 8 9 10 20 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 0.9804 0.9709 0.9639 0.9615 0.9592 0.9524 0.9434 0.9346 0.9259 0.9612 0.9426 0.9290 0.9246 0.9201 0.9070 0.8900 0.8734 0.8573 0.9423 0.9151 0.8954 0.8890 0.8826 08638 08396 0.8163 07938 0.9238 0.8885 08631 0.8548 08466 08227 07921 07629 07350 0.9057 0.8626 08319 08219 08121 07835 07473 07130 06806 0.8880 0.8375 0801807903 0.7790 07462 07050 0.6663 0.6302 0.8706 0.8131 0772807599 0.7473 07107 06651 0.6227 0.5835 0.8535 07894 07449 0.7307 07168 0.6768 0.6274 0.5820 0.5403 08368 07664 0.7180 07026 0.6876 06446 0.5919 05439 05002 08203 0.7441 0.6920 0.6756 06595 06139 05584 0.5083 0.4632 0.6730 0.5537 04789 0.4564 04350 0.3769 0.3118 0.2584 02145 Periods 2 9% 10% 11% 2% 3% 14% 15% 20% 25% 09174 09091 09009 08929 08850 08772 08696 08333 08000 0847 08264 08116 07972 07831 07695 07561 06944 06400 07722 07515 07312 07118 06931 06750 06575 0578705120 07084 06830 0658706355 06133 05921 05718 04823 04096 3 4 15 6 7 06499 06209 05935 05674 05428 05194 04972 04019 03277 05963 05645 05346 05066 04305 04556 04525 03549 02621 05470 05132 0487 04523 0425103996 03759 02791 02097 05019 04665 04339 04039 03762 03506 05269 02:26 01678 04604 04241 03909 03606 03329 03075 02845 01938 01:42 104224 03855 035220322002946 02697024720161607074 8. 8 9 10 200784 01486 01240 0103700868 00728 00610026 15 BLE 11.3A Future Value of an Annuity of $1 Periods* 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 1.0000 1.0000 10000 10000 10000 10000 10000 10000 1.0000 2 20200 2.0300 20375 2.0400 2.0425 2.0500 2.0600 2.0700 2.0800 3.0604 3.0909 3.11393.1216 3.1293 3.1525 3.1836 3.21493.2464 4.1216 41836 4.2307 42465 42623 4.310 43746 4.4399 4.5061 5:2040 5.3091 53893 5.4163 5.4434 5.5256 56371 57507 5.8666 6.3061 6.4684 6.5914 6.6330 6.6748 6.8019 6.9753 71533 73359 74343 76625 7.8386 78983 79585 8.1420 8.3938 8.6540 8.9228 8 8.5830 8.8923 9.1326 9.21429.2967 9.5491 9.8975 10.2598 10.6366 9 9.7546 101591 10.4750 10.5828 10.6918 110266 11.4913 119780 12.4876 10.9497 11.4639118678 120061 121462 12.5779 131808 13.8164 14.4866 20 24 2974 26.8704 290174 297781 30.5625 330660 367856 40.9955 45.7620 10 Periods" | 2 4 9% 0% % 2% 3% 14% 15% 20% 25% 10000 1.0000 1.0000 1.0000 10000 1.0000 10000 10000 10000 20900 21000 21100 21200 21300 21400 21500 22000 22500 32781 33100 33421 33744 34069 34396 34725 3.6400 38125 4573146410 47097 47793 4.8498 4921 4993453680 5.7656 5.984761051 62278 63528 6480366101 6742474416082070 7523371667029 3162 832278536873799299 12588 92004 94872 97833 10 0890 104047 107305 10668 129159 150735 1028 114359 18594 22997 27575 15252867266 16 1991 193419 20210 35975 41640 147757 1541576085367856 207989 25 8025 15 1929 159374 67220 75487 18497 95376 205037 25 9587 33 2529 5160 572750 G2028 720524 309463910249 102443666688042947 6 7 8 10 20 mm TABLE 11.4A Present Value of Annuity of $1 Periods N W 07 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 0.9804 0.9709 0.9639 0.9615 0.9592 0.9524 0.9434 0.9346 0.9259 1.9416 1.9135 1.8929 1.8861 1.8794 1.8594 1.8334 1.8080 1.7833 2.8839 2.8286 2.7883 2.7751 27620 27232 26730 26243 2.5771 3.8077 3.717136514 3.6299 36086 3.5460 3.4651 338723.3121 471354.5797 44833 4.4518 4.4207 43295 42124 41002 3.9927 5.6014 5.4172 52851 5.2421 51997 5.0757 4917347665 4.6229 6.4720 6.2303 6.0579 60021 5.9470 57864 55824 53893 5.2064 73255 70197 68028 6732766638 6 4632 6 2098 59713 57466 81622 77861 75208 74353 73513 71078 68017 65152 6 2469 8.9826 85302 8 2128 811098010977217 73601 70236 6.7101 000 10 8 1 0775 2 O 2 CONOSA | Periods* @ 1 2 3 4 5 9% 10% 11% 12% 13% 14% 15% 20% 25% 0.9174 0.9091 0.9009 0.8929 0.8550 0.8772 0.8696 0.8333 0.8000 1.7591 1,7355 1,7125 1,6901 1,6681 1,6467 1,6257 1,5278 1,4400 2.5313 2,4869 2,4437 2,4018 2,3612 2,3216 2,2832 21065 1,9520 3.2397 31699 3.1024 3,0373 2,9745 2,9137 2,8550 2,5887 2,3616 3.8897 37908 3,6959 3,6048 3,5172 3.4331 3,3522 2,9906 2,6893 4 4859 43553 4,2305 41114 39975 3,8887 3,7845 33255 2,9514 5.0330 4 8684 47122 4 5638 44226 4 2883 41604 36046 316111 55348 53349 51461 49676 47988 46389 44873 38372 3,3289 59952 57590 55370 513282 51317 49464 47716 4.0310 3,4631 16,4177 61446 58892 56502 54262 52161 5,0188 41925 3,5705 91285 85136 79633 74694 70248 6,6231 62593 48696 1319539 6 0 0 10 1 20 $(31,966) $187,000 $18.948 $105.000