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need help with question 1) 2) 3) and 4) 1) 2) 3) 4) use tables below Annual cash inflows that will arise from two competing
need help with question 1) 2) 3) and 4)
Annual cash inflows that will arise from two competing investment projects are given below: Year 1 2 3 4 Investment A Investment B $ 3,000 $ 6,000 4,000 5,000 5,000 4,000 6,000 3,000 $ 18,000 $18,000 The discount rate is 11% Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment Present Value of Cash Flows Investment A Investment B Year 1 2 3 4 $ 0 $ 0 Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $137,000 immediately as her full retirement benefit. Under the second option, she would receive $26,000 each year for 7 years plus a lump-sum payment of $56,000 at the end of the 7-year period. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 14%. 1-b. If she can invest money at 14%, which option would you recommend that she accept? In four years, when he is discharged from the Air Force, Steve wants to buy a $12,000 power boat. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount must Steve invest now to have the $12,000 at the end of four years if he can invest money at (Round your final answers to the nearest whole dollar amount.) Present Value $ 1. Seven percent 2. Eleven percent The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year 1 2 Investment $60,000 $ 3,000 4 5 6 7 8 9 10 Cash Inflow $ 4,000 $ 8,000 $16,000 $17,000 $20,000 $18,000 $16,000 $14,000 $13,000 $13,000 Required: 1. Determine the payback period of the investment 2. Would the payback period be affected if the cash inflow in the last year were several times as large? EXHIBIT 128-1 Present Value of $t: 1 7 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0820 0.813 0.806 0.800 2 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.640 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0731 0.712 0.693 0675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 4 0.855 0823 0792 0763 0735 0.708 0683 0659 0636 0.613 0.592 0.572 0.552 0534 0516 0.499 0482 0.467 0.451 0437 0423 0410 5 0.822 0784 0.747 0.7130681 0.650 0621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0402 0.386 0370 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 0.456 0.432 0.410 0.390 0.370 0.352 0335 0.319 0.303 0.289 0275 0262 0.760 0711 0665 0.623 0583 0.547 0513 0.482 0.452 0425 0.400 0.376 0.354 0.333 0.314 0.296 0 279 0.263 0249 0235 0222 0.210 8 0.731 0677 0627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0266 0.249 0233 0.218 0204 0.191 01790168 9 0.703 0645 0.592 0544 0500 0.460 0.424 0.391 0361 0.333 0308 0284 0263 0243 0225 0209 0194 01800167 0.155 0144 0134 10 0.676 0614 0.558 0.508 0.463 0.422 0.386 0.352 0322 0.295 0270 0.247 0227 0.208 0191 0176 0162 0.149 0137 0126 0116 0107 11 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.3170287 0.261 0237 0.215 0.195 0178 0162 0.148 0135 01230112 0.103 0.094 0.086 12 0.625 0557 0.497 0.444 0.397 0.356 0319 0.286 0257 0.231 0208 0.187 0.168 0152 0137 0124 01120102 0.092 0.083 0.076 0.069 13 0.601 0530 0469 0415 0.368 0.326 0290 0258 0229 0.2040182 0.163 0145 0.1300116 0104 0.093 0.084 0.075 0068 0.061 0055 14 0.577 0505 0442 0388 0340 0299 0263 0232 0205 0181 0160 0.141 0125 0.111 0.099 0088 0.078 0.069 0.062 0055 0049 0.044 15 0.555 0.481 0.417 0.362 0.315 0.275 0239 0.209 0183 0160 0.14001230108 0.095 0.084 0074 0065 0057 0.051 0.045 0.040 0.035 16 0.534 0458 0.394 0339 0292 0252 0218 0988 0163 0141 0123 0107 0093 0.081 0071 0.062 0054 0.047 0042 0.036 0032 0028 17 0.513 0.436 0371 0317 0270 0231 0198 01700146 0125 0108 0.093 0.080 0.069 00600052 0.045 0.039 0034 0030 0.026 0.023 18 0.494 0.416 0.350 0296 0 250 0212 01800153 0130 0111 0.095 0.081 0069 0059 0051 0044 0038 0032 0028 0024 0.021 0.018 19 0.475 0.396 0.331 0.277 0232 0.194 0164 0138 0116 0.098 0.083 0.070 0.060 0.051 0.043 0037 0.031 0.027 0.023 0020 00170014 20 0.456 0377 0.312 0258 0215 0178 0149 0124 0104 0087 0073 0061 0051 0.043 0.037 0031 0026 0.022 0019 0.016 0014 0012 21 0.439 0.359 0.294 0 242 0199 0164 0135 0.112 0.093 0.077 0.064 0.053 0044 0.037 0.031 0.026 0022 0.018 0.015 0.013 0011 0009 22 0.422 0342 0278 0226 0184 01500123 0101 0083 0.068 0056 0.046 0.038 0032 0.026 0022 0.018 0015 0013 0011 0009 0.007 23 0.406 0326 0262 0211 0170 0.138 0.112 0091 0.074 0.060 0049 0.040 0.033 0.027 0.022 0018 0.015 0.012 0010 0.009 0.007 0.006 24 0.390 0310 0247 0.197 0158 0.126 0102 0.082 0.066 0.053 0043 0.035 0.028 0.023 0.019 0.015 0.013 0.010 0.008 0.007 0.006 0.005 0.375 0295 0233 0184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0.0160.013 0.010 0.009 0.007 0.006 0.005 0.004 26 0.361 0281 0220 0172 0135 0106 0.084 0.066 0.053 0.042 0.033 0.026 0.021 0.01 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 27 0.347 0268 0207 0.161 0125 0.098 0.076 0.060 0.047 0.037 0029 0.023 0.018 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 28 0.333 0255 0.196 0150 0.116 0.090 0069 0.054 0.042 0.033 0026 0.020 0.016 0.012 0010 0.008 0.006 0.005 0004 0.003 0.002 0.002 29 0.321 0243 0.185 0141 0107 0.082 0.063 0.048 0.037 0.029 0.022 0.01 0.014 0.0110.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 30 0.308 0231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0.026 0.020 0,015 0,012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 40 0.208 0142 0.097 0.067 0.046 0.032 0.022 0.015 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 25 EXHIBIT 120-2 Present Value of an Annuity of St In Arrears: +1 - 1 2 Periods 4% 5% 7% 8% 9% 10% 119 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1886 1859 1.833 1808 1783 1.759 1736 1713 1690 1668 1647 1626 1605 1585 1566 1547 1528 1509 1492 1474 1457 1.440 3 2.775 2723 2673 2624 2.577 2.531 2487 2.444 2402 2361 2322 2.283 2246 2210 2.174 2140 2106 2.074 2042 2011 1981 1952 4 3.630 3.546 3465 3387 3.312 3 240 3170 3102 3037 2974 2914 2855 2798 2743 2690 2 639 2589 2540 2494 2448 2404 2362 5 4452 4329 4212 4100 3.993 3 890 3791 3696 3605 3517 3433 3352 3.274 3199 3127 3058 2.991 2926 2864 2803 2745 2689 6 5242 5.076 4917 4767 4623 4486 4355 4231 4111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3326 3245 3.167 3.092 3.020 2951 6.002 5786 5.582 5389 5.206 5.033 4868 4712 4564 4423 4288 4160 4.039 3922 3.812 3706 3.605 3.508 3.416 3.327 3242 3161 8 6.733 6.463 6210 5.971 5.747 5535 5.335 5.146 4968 4799 4639 4.487 4 344 4207 4078 3.954 3.837 3.726 3.619 3.518 3.421 3329 9 7.435 7108 6.802 6.515 6.247 5.995 5.759 5.537 5328 5132 4946 4772 4.607 4451 4303 4.163 4031 3.905 3.786 3.673 3.566 3.463 10 8.111 2.722 7360 7024 6.710 6.418 6.145 5.889 5650 5.426 5.216 5.019 4833 4.659 4.494 4339 4192 4.054 3.923 3.799 3.682 3.571 11 8.760 8306 7887 7499 7139 6.805 6.495 6 207 5938 5687 5453 5 234 5.029 4836 4656 4486 4327 417 4035 3.902 3776 3656 12 9 385 8863 8384 7943 7536 7161 6.814 6 492 6194 5918 5.660 5.421 5.197 4988 4793 4611 4439 4278 4127 3.985 3851 3725 13 9.986 9.394 8853 8.358 7904 7487 7103 6750 6424 6122 5842 5583 5 342 5118 4910 4715 4533 4362 4203 4053 3.912 3780 14 10.563 9.899 9.295 8745 8.244 7786 7367 6982 6 628 6 302 6002 5724 5.468 5229 5008 4802 4611 4432 4265 4108 3962 3824 15 11.118 10.380 9712 9.108 8.559 8061 7606 7191 6 811 6.462 6142 5.847 5.575 5324 5.092 4.876 4675 4.489 4315 4153 4001 3.859 16 11.652 10.838 10.106 9.447 8.851 8.313 7824 7379 6.974 6.604 6.265 5.954 5.668 5.405 5162 4.938 47304536 4357 4.189 4.033 3.887 17 12.166 11 274 10.477 9.763 9.122 8.544 8.022 7549 7120 6729 6.373 6.047 5749 5.475 5222 4.990 4775 4576 4.391 4.219 4.059 3.910 18 12.659 11690 10.828 10.059 9.372 8.756 8.201 7702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 48124608 4.419 4243 4080 3.928 19 13134 12.085 11.158 10.336 9.604 8.950 8.365 7839 7366 6.938 6.550 6.198 5877 5584 5316 5070 4843 4635 4442 4.263 4097 3.942 20 13.590 12.462 11.470 10.594 9.818 9129 8514 7963 7469 7025 6.623 6.259 5929 5628 5353 5101 4870 4657 4460 4279 4110 3954 21 14 029 12.821 11764 10836 10.017 9 292 8.649 8075 7562 7102 6.687 6.312 5973 5665 5384 5127 4891 4675 4.476 4 292 4121 3.963 22 14 451 13.163 12.042 11.061 10 201 9.442 8772 8176 7645 7170 6.743 6.359 6011 5696 5.410 5149 4909 4690 4488 4302 4130 3.970 23 14857 13.489 12 303 11.272 10371 9.580 8.883 8266 7718 7230 6792 6.399 6044 5723 5.432 5167 4925 4 703 4499 4311 4137 3.976 24 15 247 13.799 12.550 11.469 10.529 9.707 8.985 8348 7784 7283 6.835 6.434 6.073 5746 5.451 5.182 4937 4 713 4507 4318 4143 3.981 25 15.622 14.094 12.783 11.654 10.675 9.8239.077 8.422 7843 7330 6.873 6.464 6.097 5766 5.467 5.1954.948 4721 4514 4.323 4147 3.985 26 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7372 6.906 6.491 6118 5783 5.480 5.206 4 956 4728 4520 4.328 4.151 3.988 27 16.330 14643 13.211 11.987 10.935 10.027 9 237 8.548 7943 7409 6.935 6.514 6.136 5.798 5.492 5 215 4.964 4734 4.524 4.332 4154 3.990 28 16.663 14.898 13.406 12137 11051 10.116 9.307 8.602 7.984 7441 6.961 6.534 6.152 5810 5.502 5 223 4.970 4.739 4528 4.335 4.157 3.992 29 16.984 15.141 13.591 12 278 11.158 10.198 9370 8.650 8022 7470 6.983 6.551 6.166 5820 5.510 5229 4.975 4743 4.531 4.337 4159 3.994 30 17.292 15.372 13.765 12.409 11.258 10 274 9.427 8.694 8055 7496 7003 6.566 6.177 5.829 5.517 5235 4.979 4746 4534 4339 4160 3.995 40 19793 17159 15 046 13 332 11925 10757 9779 8951 8244 7634 7105 6.642 6233 5871 5548 5258 4 997 4760 4544 4347 4166 3.999 1)
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use tables below
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