New Tech Corporation is a rapidly growing biotech company that has a required rate of return of 10%. It plans to build a new facility in Santa Clara County. The building will take 2 years to complete. The building contractor offered New Tech a choice of three payment plans, as follows: (Click the icon to view the data) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Using the net present value method, calculate the comparative cost of each of the three payment plans being considered by New Tech. (Round your final answers to the nearest whole dollar.) The net present value cost of Plan I is $ - i - X More Info X * Requirements Plan I: Payment of $175,000 at the time of signing the contract and $4,850,000 upon completion of the building. The end of the second year is the completion date. Plan II: Payment of $1,625,000 at the time of signing the contract and $1,625,000 at the end of each of the 2 succeeding years. Plan III: Payment of $225,000 at the time of signing the contract and $1,575,000 at the end of each of the 3 succeeding years. Using the net present value method, calculate the comparative cost of each of the three payment plans being considered by New Tech. Which payment plan should New Tech choose? Explain. Discuss the financial factors, other than the cost of the plan, and the nonfinancial factors that should be considered in selecting an appropriate payment plan. Print Done Print Done Enter any number in the edit fields and then click Check Answer. 5 parts 5 remaining Clear All Check Answer Reference - X Periods 4 5 11 Present Value of $1 Periods 2% 0.980 0 961 0.942 0.924 0 906 0.888 0.871 0 853 0.837 0.820 11 0.804 0.788 0.773 0758 0.743 0.728 0.714 0.700 0.686 20 0.673 21 0 660 0 647 0.634 0.622 OF AC40 4% 0.962 0.925 0.889 0.855 0 822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0577 0 555 0.534 0 513 0 494 0.475 0 456 0 439 0 422 0.406 0 390 0 17 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0 558 0.527 0.497 0.469 0 442 0.417 0 394 0 371 0 350 0 331 0.312 0 294 0 278 0 262 0.247 0 100 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0 540 0.500 0 463 0 429 0 397 0.368 0 340 0.315 0 292 0 270 0 250 0 232 0 215 0 199 0 184 0.170 0.158 A 4ALc 10% 0.909 0.825 0.751 0.683 0.621 0 564 0.513 0 467 0.424 0 386 0 350 0.319 0 290 0 263 0 239 0.218 0 198 0 180 0.164 0.149 0 135 0 123 0.112 0.102 An 12% 0.893 0.797 0.712 0.636 0.567 0.507 0 452 0.404 0 361 0 322 0.287 0 257 0 229 0205 0.183 0.163 0 146 0 130 0.116 0.104 0.093 0.083 0.074 0.066 ALOEn 14% 0.877 0.769 0.675 0.592 0.519 0 456 0 400 0.351 0308 0 270 0 237 0 208 0 182 0 160 0 140 0.123 0 108 0095 0.083 0.073 0 064 0.056 0.049 0.043 0.00 16% 0.862 0.743 0.641 0 552 0.476 0 410 0.354 0.305 0 263 0 227 0 195 0 168 0.145 0.125 0 108 0.093 0.080 0.069 0.060 0.051 0.044 0.038 0.033 0.028 0.00 18% 0.847 0.718 0.609 0 516 0.437 0 370 0.314 0 266 0 225 0 191 0.162 0.137 0.116 0.099 0.084 0.071 0.060 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.04C 20% 0.833 0.694 0.579 0 482 0.402 0 335 0.279 0 233 0 194 0.162 0.135 0.112 0.093 0.078 0.065 0.054 0.045 0.038 0.031 0.026 0.022 0.018 0.015 0.013 A_040 22% 0.820 0.672 0 551 0 451 0370 0.303 0 249 0 204 0 167 0.137 0.112 0.092 0.075 0.062 0.051 0.042 0.034 0.028 0.023 0.019 0.015 0.013 0.010 0.008 A 007 24%% 0.806 0.650 0.524 0 423 0 341 0 275 0 222 0.179 0.144 0.116 0.094 0.076 0.061 0.049 0.040 0.032 0.026 0.021 0.017 0.014 0.011 0.00 0.007 0.006 0.00 26% 0.794 0.630 0.500 0 397 0.315 0 250 0.198 0.157 0.125 0.099 0.079 0.062 0.050 0.039 0.031 0.025 0.020 0.016 0.012 0.010 0 008 0.00 0.005 0.004 0.00 28% 0.781 0.610 0 477 0 373 0 291 0 227 0 178 0 139 0 108 0.085 0.066 0.052 0.040 0.032 0.025 0.019 0.015 0.012 0.009 0.007 0.005 0.004 0.003 0.003 0.00 30% 0.769 0.592 0.455 0 350 0.269 0 207 0.159 0.123 0.094 0.073 0.056 0.043 0.033 0.025 0.020 0.015 0.012 0 009 0.007 0.005 0004 0003 0.002 0.002 0.00 32% 0.758 0.574 0 435 0 329 0 250 0.189 0.143 0.108 0.082 0.062 0.047 0.036 0.027 0.021 0.016 0.012 0 009 0.007 0.005 0.004 0.003 0.002 0.002 0.001 0.004 40% 0.714 0.510 0.364 0 260 0.186 0.133 0.095 0.068 0.048 0.035 0.025 0.018 0.013 0.009 0.006 0.005 0.003 0.002 0.002 0.001 0.001 0001 0.000 0.000 000 Print Done Reference - X Periods DOO VOWN Compound Amount of $1.00 (The Future Value of $1.00) Periods 2% 4% 6% 8% 10% 12% 14% 1.020 1.040 1.060 1.080 1.100 1.120 1.140 1.040 1.082 1.124 1.166 1.210 1.254 1.300 1.061 1.125 1.191 1.260 1.331 1.405 1.482 1.082 1.170 1.262 1.360 1.464 1.574 1.689 1.104 1.217 1.338 1.469 1.611 1.762 1.925 1.126 1.265 1.419 1.587 1.772 1.974 2.195 1.149 1.316 1.504 1.714 1.949 2.211 2.502 1.172 1.369 1.594 1.851 2.144 2.476 2.853 1.195 1.423 1.689 1.999 2.358 2.773 3.252 1.219 1.480 1.791 2.159 2.594 3.106 3.707 1.243 1.539 1.898 2.332 2.853 3.479 4.226 1.268 1.601 2.012 2.518 3.138 3.896 4.818 1.294 1.665 2.133 2.720 3.452 4.3635.492 1.319 1.732 2.261 2.937 3.797 4.887 6.261 1.346 1.801 2.397 3.172 4.177 5.474 7.138 1.373 1.873 2.540 3.426 4.595 6.130 8.137 1.400 1.948 2.693 3.700 5.054 6.866 9.276 1.428 2.026 2.854 3.996 5.560 7.690 10.575 1.457 2.107 3.026 4.316 6.116 8.613 12.056 20 1.486 2.191 3.207 4.661 6.727 9.646 13.743 1.516 2.279 3.400 5.034 7.400 10.804 15.668 1.546 2.370 3.604 5.437 8.140 12.100 17.861 1.577 2.465 3.820 5.871 8.954 13.552 20.362 1.608 2.563 4.049 6.341 9.850 15.179 23.212 AA C 202 010 1000 17 000 20 10 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.411 5.117 5.936 6.886 7.988 9.266 10.748 12.468 14.463 16.777 19.461 22.574 26.186 30.376 35.236 10 07 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147 11.974 14.129 16.672 19.673 23.214 27.393 32.324 38.142 45.008 53.109 Anno 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 18.488 22.186 26.623 31.948 38.338 46.005 55.206 66.247 79.497 C 200 22% 24% 26% 1.220 1.240 1.260 1.488 1.538 1.588 1.816 1.907 2.000 2.215 2.364 2.520 2.703 2.932 3.176 3.297 3.635 4.002 4.023 4.508 5.042 4.908 5.590 6.353 5.987 6.931 8.005 7.305 8.594 10.086 8.912 10.657 12.708 10.872 13.215 16.012 13.264 16.386 20.175 16.182 20.319 25.421 19.742 25.196 32.030 24.086 31.243 40.358 29.384 38.741 50.851 35.849 48.039 64.072 43.736 59.568 80.731 53.358 73.864 101.721 65.096 91.592 128.169 79.418 113.574 161.492 96.889 140.831 203.480 118.205 174.631 256.385 A 240 240CM20201C 28% 30% 32% 40% 1.280 1.300 1.320 1.400 1.638 1.690 1.742 1.960 2.097 2.197 2.300 2.744 2.684 2.856 3.036 3.842 3.436 3.713 4.007 5.378 4.398 4.827 5.290 7.530 5.629 6.275 6.983 10.541 7.206 8.157 9.217 14.758 9.223 10.604 12.166 20.661 11.806 13.786 16.060 28.925 15.112 17.922 21.199 40.496 19.343 23.298 27.983 56.694 24.759 30.288 36.937 79.371 31.691 39.374 48.757 111.120 40.565 51.186 64.359 155.568 51.923 66.542 84.954 217.795 66.461 86.504 112.139 304.913 85.071 112.455 148.024 426.879 108.890 146.192 195.391 597.630 139.380 190.050 257.916 836.683 178.406 247.065 340.449 1171.356 228.360 321.184 449.393 1639.898 292.300 417.539 593.199 2295.857 374.144542.801783.023 3214.200 A700C 700 441 102 con 100 000 Print Done i Reference - X Periods DOO VOWN- 11 Compound Amount of Annuity of $1.00 in Arrears* (Future Value of Annuity) Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.020 2.040 2.060 2.080 2.100 2.120 2.140 2.160 2.180 3.060 3.122 3.184 3.246 3.310 3.374 3.440 3.506 3.572 4.122 4.246 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.204 5.416 5.637 5.867 6.105 6.353 6.610 6.877 7.154 6.308 6.633 6.975 7.336 7.716 8.115 8.536 8.977 9.442 7.434 7.898 8.394 8.923 9.487 10.089 10.730 11.414 12.142 8.583 9.214 9.897 10.637 11.436 12.300 13.233 14.240 15.327 9.755 10.583 11.491 12.488 13.579 14.776 16.085 17.519 19.086 10.950 12.006 13.181 14.487 15.937 17.549 19.337 21.321 23.521 12.169 13.486 14.972 16.645 18.531 20.655 23.045 25.733 28.755 13.412 15.026 16.870 18.977 21.384 24.133 27.271 30.850 34.931 13 14.680 16.627 18.882 21.495 24.523 28.029 32.089 36.786 42.219 15.974 18.292 21.015 24.215 27.975 32.393 37.581 43.672 50.818 17.293 20.024 23.276 27.152 31.772 37.280 43.842 51.660 60.965 18.639 21.825 25.673 30.324 35.950 42.753 50.980 60.925 72.939 20.012 23.698 28.213 33.750 40.545 48.884 59.118 71.673 87.068 21.412 25.645 30.906 37.450 45.599 55.750 68.394 84.141 103.740 22.841 27.671 33.760 41.446 51.159 63.440 78.969 98.603 123.414 24.297 29.778 36.786 45.762 57.275 72.052 91.025 115.380 146.628 25.783 31.969 39.993 50.423 64.002 81.699 104.768 134.841 174.021 27.299 34.248 43.392 55.457 71.403 92.503 120.436 157.415 206.345 28.845 36.618 46.996 60.893 79.543 104.603 138.297 183.601 244.487 30.422 39.083 50.816 66.765 88.497 118.155 158.659 213.978 289.494 C 22000 1 I CAOC 72100 00217 122221 101 074 210 211 212002 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 87.442 105.931 128.117 154.740 186.688 225.026 271.031 326.237 392.484 174 001 22% 24% 1.000 1.000 2.220 2.240 3.708 3.778 5.524 5.684 7.740 8.048 10.442 10.980 13.740 14.615 17.762 19.123 22.670 24.712 28.657 31.643 35.962 40.238 44.874 50.895 55.746 64.110 69.010 80.496 85.192 100.815 104.935 126.011 129.020 157.253 158.405 195.994 194.254 244.033 237.989 303.601 291.347 377.465 356.443 469.056 435.861 582.630 532.750 723.461 CEO OCC000.00 26% 28% 1.000 1.000 2.260 2.280 3.848 3.918 5.848 6.016 8.368 8.700 11.544 12.136 15.546 16.534 20.588 22.163 26.940 29.369 34.945 38.593 45.031 50.398 57.739 65.510 73.751 84.853 93.926 109.612 119.347 141.303 151.377 181.868 191.735 233.791 242.585 300.252 306.658 385.323 387.389 494.213 489.110 633.593 617.278 811.999 778.771 1040.358 982.251 1332.659 1020 021700 002 30% 1.000 2.300 3.990 6.187 9.043 12.756 17.583 23.858 32.015 42.619 56.405 74.327 97.625 127.913 167.286 218.472 285.014 371.518 483.973 630.165 820.215 1067.280 1388.464 1806.003 2000 000 32% 1.000 2.320 4.062 6.362 9.398 13.406 18.696 25.678 34.895 47.062 63.122 84.320 112.303 149.240 197.997 262.356 347.309 459.449 607.472 802.863 1060.779 1401.229 1850.622 2443.821 2001 40% 1.000 2.400 4.360 7.104 10.946 16.324 23.853 34.395 49.153 69.814 98.739 139.235 195.929 275.300 386.420 541.988 759.784 1064.697 1491.576 2089.206 2925.889 4097.245 5737.142 8032.999 14 16 20 21 24 Print Done