Net Present Value For discount factors use Exhibit 120-1 and Exhibit 128-28 Talmage Inc. has just completed development of a new printer. The new product is expected to produce annual revenues of $2,700,000. Producing the printer requires an investiment in new equipment conting $2,880,000. The printer has a projected life cycle of years. After 5 years, the equipment can be sold for $360,000. Working capital is also expected to decrease by $360,000, which Talmage will recover by the end of the new product's life cycle. Annual cash operating expenses are estimated t51.620,000. The required rate of return is 8% Required: 1. Prepare a schedule of the projected annual cash flows. Year Item Cash Flow 0 Total 1- Total Cash Flow Year Item 0 Total Total TO 2. Cheile the NPLsing only count factors from Exhibit 1201 3. Calculate the wing discount tortor from the 126.1 and 1202 Exhibit 128.1 Present Value of a Single Amount 196 2% 396 49 59 6% 7. 89 94 10% 12% 149, 1694 18% 20% 25. 300 1 0.99010 0.93039 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.89286 0.87719 0.86207 0.84746 0.03333 0.80000 0.76923 20.98030 0.96117 0.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.79719. 076947 0.74316 0.71818 0.69444 0.64000 0.59172 30.97059 0.94232 0.91514 0.88900 0.86384 083962 081630 0.70383 0.77218 075131 0.71178 0.67497 0.64066 060863 0.578700 51200 0.45517 4 0.96098 0.92385 0.88849 0.85480 082270 0.79209 0.76290 0.73503 070842 0.68301 0.67552 0.59208 0.55220 0.51579 0.48225 0.40060 0,35013 50.05147 0.90573 86261 0.82193 0.78753 0.74726 0.71299 0.68058 0.6499% 0.62092 0.56743 051937 0.47611 0.43711 0.40188 0.32768 0.26933 60.94205 0.88797 0.83748 6.70031 0.74622 0.70496 0.66634 063017 0.5962) 0 56447 0.50663 0.45559 0.41044 037043 033490 0.26214 0.20718 7 0,93272 087056 0.81309 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.4235 0.39964 0.35383 031391 0.27008 0.20972 0.15917 $ 0.02348 0.85349 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.5018 046651 0.40388 0.5056 0.30503 0.26604 0.23259 0.16777 0.12259 9 0.91434 083676 0.76642 0.70259 0.64461 0.50190 0.54393 00025 0.46043 042410 0.16061 0.30751 0.26205 0.22546 0.19781 0.13422 0.00470 10 0.00529 0.82015 0.74409 0.67556 0.61391 055839 0.50825 0.46319 042241 0.3854 0.32197 0.26974 0.22668 019106 0.16151 0.10737 0.07254 11 0.89612 0 50426 0.72242 0.64058 0.55468 0.52679 047500 0.42 1751 0.5049 0.28748 023662 0.19542 0.16192 0.13459 0.08500 0.05580 12 0.88745 0.750 0.70115 0,62410 0 55684 040697 0.44101 0.10711 0.15553 0.31661 0.25668 0.20756 0.16846 0.13722 0.11216006872 0.0492 13 0766.0.22103 060005 0.60057 OS1012 0.46884 0.41496 016770 OH 0.28065 0 22917 0.18207 0.14521011629 0.09146005498 001102 14 0996 0.75788 066112 07745 O SOSO0.44210 0.18702 0.34046 0.20925 0.2031020462 0.151 0.12520 0.00 0.00 0.00 0.00540 15 0.3612 074307 0/64186 0.55526 0.48102 0.41727 0.16245 0.31524 0.27454 0.21919 0.18270014010 0.1079 0083 00640 00151 01054 16 085282 0.72845 0.62117 0.53101 0.458110.10165 0.11871 0.291 0.21 0.2160011201220000104 007078 0.05409002815 0010 17 0.84438 071416 0.605020351312 0.4630017136 0.11657 037007 0211070107014564 0.10760 0.00 0.00 0.00 0.02252 0.01156 1 0.002 0.70016 0.587 0.4056 0.41552 015034 0.29556 25025 0.21199 0170611004 0.00456 0.06014 O OSOB 001756 0110 000 19 0.12714068643057029 0.47464 0.19571 033051 0.27651 021710114 016351 0.11611 0295 001 0.04108 00001441 0.006 20 0154 067297 OSS 0:4569 0.16 031180025842 021455 07841 0.146 010367 0.0727600119165T NO 801153 000 21 081141 060 0.5 0.4355 0.15 0.20416 24151 6.0.1637011511020061100100104 002174 0.00022 0.00405 22 003464684 9.10 0.42196 0.14185 0751 0.22571 018394 050012285 4005599 01519 002 0.0151100011 000 2.76544 066 S01012557 0.26180 0 21005 o 17012 0.117700 1116 0.03 001011 001297003332 BOS ODOS 24 0.78757 0172 0.40101 01101010 010715 015770 1400 10151 0.000 0.021 0.01 0.00473 04 25 0770771 X6 X512 2010 01100 018425 0.00 0.00230 DNES 0010010001010 26.05 T5 000 0017220 115.20 0.10419 0,051010 01115 000 000 000 000 27 OSLO 450 146 0 2 0 2071 0.0003 0.12510 2008 02 2 ST 040 51056 0110 069 00 01 000 0.000065 294340.11 AOS OS 024205144 000 000 000 074191 0:41 174110000 10001000 Exhibit 123.2 Present Value of an Annuity 145 19 2% 39 5% 6% 7% B9 99 10% 12% 16" 1894 20 25% 30% 1 099010 0.98039 0.97087 0.96154 0.95238 094340 0.93458 0.9259) 0.91743 090909 0.89256 0.87719 086207 0.84746 0.83333 0.80000 0.76923 2 1.97040 194156 1.91347 1.88609 1.85941 183339 1.80802 1.78326 1.259111.73554 1.69005 1.64666 1.60523 1.56564 152778 1.44000 136095 32.94099 2.88388 282861, 2.77509 2.72325 2.67301 2.62432 2 57710 2.53129 2.48685 2.40183 2.32163 224589 2.17427 2.10648 1.95200 1.81611 43.90197 3.80773 371910 3.62990 3.54595 3.46511 3.38721 3.3121 3.239723.16937 3.03735 291371 2.79818 2.69006258873 216160 216624 5 485341 471346 457971 445182 4.320484,21216 4.1002099271 3.88965 3.70079 3.60478 343308 3.27429 1.12717 2.99061 2.68928 2.43557 6 5.79545.60143 5.41719 5.24214 507569491732 4.76654 4.62253 448592 4.35526 4.11141 3.88867 368474 3.49760 3.32551 205142 2.64275 7 6.72819 6.47199 623028 600205 5.78637 5.58218 5.38929 520637 501295 4.56842 456376428830 403857 3.81153 3.60459 3.16114 2.80211 8765168 732548 7019606.72274 646121 6.20979 597110 5.74664553482523493 496764 4.63856 434159407757383716 3.12891 292470 9856602 16224 778611 7.435337.80782 6.10169 6.515236.24689 5.09525 5.75002 S232825 4.4637 4.60654 430302 403097 3:46313 3.01900 109.47150 98250 8.5302011090 7.72173 736000 702358 6.71008 641766614457 5.65022 3.216124.83323 449409 4192473.57050 1.09194 11 1036763 9.78685 9.25262 8.76048 8.10641 7.88687 749367 7.13896 6.805196 40506 593770 5.45271 5.02864 465601 412706 3.65640 114734 12 125503 10.57514 9.95400. 9.38507 8.16125838354 7.94269753608 716073681196.19437 5.66029 5.19211 4.79022 44192227251210026 112.13574111417.10.23496 9.0856519157 8.85265 8.25765 7.0017848690710236 6.42355 5236 S34233 49005145128 3.78010 3.22328 14 13.000 12.10.25 11.29607 10.56112 910364 920405 3.74547 8.24424 7736157.366106.62812600207 546751 500806 461057 1.82408 3.24867 15 M6505124026 11.93704 11.11819 10.37966971225 9.10791 855948 8060602.0008 63103614217 57546 5.158 467547 185926 126121 16 7477871577711256110 1165230 10.83777 10.10500 9.44665835137 11256 221 69399626506 568 5.16235 4.72956 1.88741 3,20324 17 55622514.2017 1.661212.165471127407 10 47226 976112 9.12164 8.503602855 7.196217266 5748705.22733 746 1900020480 1927 14.99203 13.535126593031095 10,02760 10.05.2009 1710 3.755612041724746747 176527116 121929279410160 19 122200119678464123011111041208511 1512 10.160.11360927 578 550 562746 5116244350394235 31053 20 105 11467747 1359013 12.46221 11.46992.10.99401 981815 1855 8.513562042712024535225 486058 2053 2315 21 S7011215415021402016122115 11.7608 1081553 100161020124364656200 6 971 533 112 111 221960021445112216900 12.04111.00124 10.2004 9423 MS 74204 601 540000 40000 12049 2220 21 2220 1641465684132.101112721910.171.2 774 422130433 63 24.11.00556129191641255036 1 461506338474342354 6072635450049171014111132719 25 2619591461746220014126358 10 674792326890770478 2900700 56001003419 32061 26 22750 20.12104 1.2 502578 10 10001 - 160057140415304) 1970 22 18:50 20.06.2014032105 1006710015112122111430 20161210911106161210510610116117415Soc10117 29111407171227115641 10.10100116555 35601 11168 1022 0.000000 1700 W
