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Mester Corporation has provided the following information concerning a capital budgeting project: After-tax discount rate Tax rate Expected life of the project Investment required in

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Mester Corporation has provided the following information concerning a capital budgeting project: After-tax discount rate Tax rate Expected life of the project Investment required in equipment Salvage value of equipment Annual sales Annual cash operating expenses One-time renovation expense in year 3 13% 30% s 188,e0e s 215,eee s 145,eee s 25,eee Click here to view Exhibit 138-1 to determine the appropriate discount factor(s) using tables The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the Initial investments. The company takes income taxes into account in its capital budgeting The net present value of the project is closest to: (Round intermediate colculations and final answer to the nearest dollar amount.) Multiple Choice $49,688 $157688 $102,900 $47,306 EXHIBIT 13B Present Velue of $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 0901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 o.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 0812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0694 0683 0672 0661 0.650 0.640 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0693 0675 0658 0641 0.624 0609 0.593 0579 0564 0551 0.537 0.524 0512 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0659 0.636 0613 0.592 0.572 0.552 0.534 0516 0.499 0.482 0.467 0451 0437 0.423 0.410 5 0.822 0.784 0.747 0.713 0.681 0.650 0621 0.593 0.567 0543 0.519 0.497 0.476 0.456 0.437 0419 0.402 0.386 0.370 0.355 0.341 0.328 6 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 7 0.760 0.711 0.665 0623 0.583 0.547 0.513 0482 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 8 0.731 0.677 0.627 0.582 0 540 0.502 0467 0434 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 9 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0 243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 10 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0 295 0.270 0.247 0227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 11 0.650 0.585 0.527 0.475 0.429 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 12 0625 0557 0497 0444 0397 0.356 319 0286 0 257 O 231 0208 0.187 O 168 O 152 O 137 O.124 0 112 0 102 0092 0 083 0076 0069 13 0601 0.530 0.469 0415 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 0061 0.055 14 0.577 0505 0.442 0.388 0.340 0.299 0.263 0232 0.205 0.181 0 160 0.141 0.125 0.111 0099 0.088 0.078 0069 0062 0.055 0049 0.044 15 0.555 0.481 0417 0.362 0.315 0.275 0.239 0 209 0.183 0.160 0.140 0.123 0.108 0.095 0084 0074 0065 0057 0051 0.045 0.040 0.035 6 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 0081 0071 0.062 0.054 0.047 0.042 0 036 0032 0.028 17 0513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0093 0.080 0069 0.060 0.052 0045 0039 0.034 0.030 0.026 0.023 18 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 0059 0051 0.044 0038 0032 0028 0.024 0.021 0018 19 0475 0.396 0.331 0 277 0.232 0.194 0.164 0.138 0.116 0.098 0083 0.070 0.060 0051 0043 0037 0031 0027 0.023 0020 0.017 0.014 20 0456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0073 0061 0051 0043 0037 0031 0026 0022 0019 0016 0014 0.012 21 0439 0.359 0.294 0.242 0.199 0.164 0.135 0.112 0.093 0077 0064 0.053 0.044 0037 0031 0026 0.022 0018 0015 0013 0011 0.009 22 0422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0083 0068 0056 0.046 0.038 0032 0026 0.022 0018 0015 0013 0.011 0.009 0.007 23 0.406 0.326 0.262 0.211 0.170 0.138 01 12 O 091 O074 0 060 0049 0040 0033 27 0022 0018 0015 0.012 0010 0009 0007 0006 24 0.390 0.310 0.247 0.197 0.158 0.126 0 102 0082 0066 0053 0043 0035 0.028 0023 0019 0015 0013 0.010 0008 0.007 0006 0.005 25 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0074 0.059 0.047 0038 0.030 0.024 00200016 0.013 0.010 0.009 0007 0.006 0.005 0.004 26 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0066 0053 0.042 0033 0026 0021 0017 0014 0011 0.009 0.007 0006 0005 o.004 0.003 27 0.347 0.268 0.207 0.161 0.125 0.098 0076 0060 0.047 0.037 0029 0023 0018 0014 0011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 28 0.333 0.255 0.196 0 150 0.116 0.090 0.069 0054 0.042 0.033 0026 0.020 0016 0.012 0.010 0.008 0.006 0.005 0.004 0003 0.002 0002 29 0.321 0.243 0.185 0.141 0.107 0082 0063 0.048 0037 0029 0.022 0017 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0002 30 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0044 0.033 0026 0020 0015 0.012 0.009 0007 0005 0.004 0.003 0.003 0002 0002 0001 40 0.208 0.142 0.097 0067 0046 0032 0022 0015 0011 0008 0005 0004 0.003 0.002 0.001 0001 0001 0.000 0000 0.000 0.000 0.000

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