Northern Manufacturing Ltd. is considering the investment of $83,000 in a new machine. The machine will generate cash flow of $15,000 per year for each year of its ten-year life and will have a salvage value of $6,000 at the end of its life. The company's cost of capital is 10%. Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Required: a. Calculate the net present value of the proposed investment. (Ignore income taxes.) b. What will the internal rate of return on this investment be relative to the cost of capital? Complete this question by entering your answers in the tabs below. Required A Required B Calculate the net present value of the proposed investment. (Ignore income taxes.) (Round your intermediate calculations. Negative amount should be indicated by a minus sign.) Net present value Required A Required B > Northern Manufacturing Ltd. is considering the investment of $83,000 in a new machine. The machine will generate cash flow of $15,000 per year for each year of its ten-year life and will have a salvage value of $6,000 at the end of its life. The company's cost of capital is 10%. Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Required: a. Calculate the net present value of the proposed investment. (Ignore income taxes.) b. What will the internal rate of return on this investment be relative to the cost of capital? Complete this question by entering your answers in the tabs below. Required A Required What will the internal rate of return on this investment be relative to the cost of capital? The internal rate of return on this project will be > Discount Rate No. of Periods 2% 8% 10% 12% 14% 16% 18% 20% 1 0.980 2 0.961 3 0.942 0.8890 4 0.924 0.8548 0.9615 0.9434 0.9259 0.8900 0.9246 0.8573 0.8264 0.8396 0.7938 0.7513 0.7921 0.7350 0.9091 0.8929 0.8772 0.8621 0.8475 0.8333 0.7972 0.7695 0.7432 0.7182 0.6944 0.7118 0.6750 0.6407 0.6086 0.5787 0.6830 0.6355 0.5921 0.5523 0.5158 0.4823 5 0.906 0.8219 0.7473 0.6806 0.6209 0.5674 0.5194 0.4761 0.4371 0.4019 6 0.888 0.7903 0.7050 0.6302 0.5645 0.5066 0.4556 0.4104 0.3704 0.3349 7 0.871 0.7599 0.6651 0.5835 0,5132 0.4523 0.3996 0.3538 0.3139 0.2791 8 0.853 0.7307 0.6274 0.5403 0.4665 0.4039 0.3506 0.3050 0.2660 0.2326 9 0.837 0.7026 0.5919 0,5002 0.4241 0.3606 0.3075 0.2630 0.2255 0.1938 10 0.820 0.6756 0.5584 0.4632 0.3855 0.3220 0.2097 0.2267 0.1911 0.1615 11 0.804 0.6496 0.5268) 0.4289 0.3505 0.2875 0.2366 0.1954 0.1619 0.1346 12 0.788 0.6246 0.4970 0.3971 0.3186 0.2567 0.2076 13 0.773 0.6006 0.4688 0.3677 0.2897 0.2292 0.1821 14 0.758 0.5775 0.4423 0.3405 0.2633 0.2046 0.1597 15 0.743 0.5553 0.4173 0.3152 0.2394 0.1827 0.1401 0.1685 0.1372 0.1122 0.0935 0.1452 0.1163 0.1252 0.0985 0.0779 0.1079 0.0835 0.0649- 16 0.728 0.5339 0.3936 0.2919 0.2176 0.1631 0.1229 0.0930 0.0708 0.0541 17 0.714 0.5134 0.3714 0.2703 0.1978 0.1456 0.1078 0.0802 0.0600 0.0451 18 0,700 0.4936 0.3503 0.2502 0.1799 0.1300 0.0946 0.0691 0.0508 0.0376 19 0.686 0.4746 0.3305 0.1635 0.1161 0.0829 0.2317 0.0596 0.0431 0.0313 20 0.673 0.4564 0.3118 0.2145 0.1486 0.1037 0.0728 0.0514 0.0365 0.0261 21 0.660 0.4388 0.2942 0.1987 0.1351 0.0926 0.0638 0.0443 0.0309 0.0217 22 0.647 0.4220 0.2775 0.1839 0.1228 0.0826 0.0560 0.0382 0.0262 0.0181 23 0.634 0.4057 0.2618 0.1703 0.1117 0.0738 0.0491 0.0329 0.0222 0.0151 24 0.622 0.3901 0.2470 0.1577 0.1015 0.0659 0.0431 25 0.610 0.3751 0.2330 0.1460 0.0923 0.0588 0.0378 0.0284 0.0188 0.0126 0.0245 0.0160 0.0105 30 0.552 0.3083 0.1741 0.0994 0.0573 0.0334 0.0196 35 0.500 0.2534 0.1301 0.0676 0.0189 0.0102 0.0356 0.0116 0.0070 0.0042 0.0055 0.0030 0.0017 40 0.453 0.2083 0.0972 0.0460 0.0221 0.0107 0.0053 0.0026 0.0013 0.0007 45 0.410 0.1712 0.0727 0.0313 0.0137 0.0061 0.0027 0.0013 0.0006 0.0003 60 0.372 0.1407 0.0543 0.0085 0.0213 0.0035 0.0014 0.0006 0.0003 0.0001 Discount Rate No. of Periods 2% 6% 8% 12% 1 0.980 2 1.942 3 2.884 4 3.808 5 4,713 Q 6 5.601 7 6.472 8 5.2421 4.9173) 6.0021 5.5824 7.325 6.7327 6.2098 4.8684 9 8.162 7.4353 6.8017 6.2469 10 8.983 8.1109 7.3001 6.7101 5.6502 10% 14% 0.9615 0.9434 0.9259 0.9091 08029 0.8772 0.8021 1.8861 1.8334 1.7833 1.7355 1.6001 1.6467 1.0052 2.7751 2.6730 2.5771 2.4809 2.4018 2.3216 2.2459 3.6299 3.4651 3.3121 3.1699 3.0373 2.9137 2.7982 4.4518 4.2124 3.9027 3.7908 3.6048 3.4331 3.2743 3.1272 2.9000 4.6229 4.3553 4.1114 3.8887 3.6847 3.4976 3.3255 5.2004 4.5638 4.2883 4.0086 3.8115 3.6046 5.7466 5.3349 4.9676 4.6380 4.3430 4.0776 3.8372 5.7500 5.3282 4.9464 4.6065 4.3030 4.0310 6.1446 4.4941 5.2161 4.8332 16% 10% 0.8475 0.8333 20% 1.5656 1.5278 2.1743 2.1065 2.6001 2.5887 4.1925 11 9.787 8.7605 7.8869 7.1300 6.4951 5.9377 12 10.575 0.3851 8.3838 7.5361 6.8137 13 11.348 0.9850 8.8527 7.9038 7.1004 14 12.100 10.5001 9.2950 15 12.849 11.1184 9.7122 8.5595 8.2442 7.3067 7.6001 16 13.578 11.0523 10.1059 8.8514 7.8237 6.9740 17 14.292 12.1667 10.4773 9.1216 6.0216 7.1196 18 14.002 12.6593 10.8276) 9.3719 8.2014 7,2497 5.4527 5.0286 4.6560 4.3271 6.1944 5.6600 5.1971 4.7932 4.4392 6:4235 5.8424 5.3423 4.9095 4.5327 6.6282 6.0021 54675 5.0001 4.0100 6.8109 6.1422 5.5755 5.0916 4.0755 0.2651 5.0685 5.1624 4.7296 6.3729 5.2223 5.7487 4.7746 6.4674 5.2732 5.8178 4.8122 19 15.678 13.1339 11.1581 9.6036 8.3649 7.3658 6.5504 5.8775 5.3162 4.8435 20 16.351 13.5903 11.4609 9.8181 8.5136 7.4004 6.6231 5.9288 5.3527 4.8006 21 17.011 14.0292 11,7641 10.0168 8.6487 7.5620 6.6870 22 17.658 14.4511 12.0416 10.2007 8.7715 7.6446 23 18.292 14.8568 12.3034 10.3711 8.8832 7.7184 5.9731 6.7429 6.0113 6.7921 24 18.914 15.2470 12.5504 10.5288 8.9847 7.7843 25 19.523 15.6221 12.7834 10.6748 9.0770 7.8431 5.3837 4.8913 5.4099 6.0442 5.4321 4.9245 6.8351 6.0726 5.4509 6.8729 6.0971 5.4669 4.9094 30 22.396 17.2920 13.7648 11.2578 9.4269 35 24.999 18.6646 14.49821 11.6546 9.6442 40 27.355 19.7928 15.0463 11.9246 9.7791 45 29.490 20.7200 15.4558) 12.1084 9.8628 8.0552 7.0027 8.1755 7.0700 8.2438 7.1050 8.2825 7.1232 4.9371 4.9476 6.1772 5.5168 4.9789 6.2153 5.5386 4.9915 6.2335 5.5482 4.9966 6.2421 5.5523 4.9986 a anue 7.1937 ADAPER 40005