Northern Manufacturing Ltd. is considering the investment of $85,000 in a new machine. The machine will generate cash flow of $14,000 per year for each year of its eight-year life and will have a salvage value of $9,000 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 Reque Required B > TUITA FACTORS FOR CALCULATING THE PRESENT VALUE OF SA Discount Rate . of riods 2% 6% 8% 10% 12% 14% 16% 18% 20% 2 3 0.980 0.961 0.942 0.924 0.906 0.9615 0.9246 0.8890 0.8548 0.8219 0.9434 0.8900 0.8396 0.7921 0.7473 0.9259 0.8573 0.7938 0.7350 0.6806 0.9091 0.8264 0.7513 0.6830 0.6209 0.8929 0.7972 0.7118 0.6355 0.5674 0.8772 0.7695 0.6750 0.5921 0.5194 0.8621 0.7432 0.6407 0.5523 0.4761 0.8475 0.7182 0.6086 0.5158 0.4371 0.8333 0.6944 0.5787 0.4823 0.4019 6 7 8 9 0.888 0.871 0.853 0.837 0.820 0.7903 0.7599 0.7307 0.7026 0.6756 0.7050 0.6651 0.6274 0.5919 0.5584 0.6302 0.5835 0.5403 0.5002 0.4632 0.5645 0.5132 0.4665 0.4241 0.3855 0.5066 0.4523 0.4039 0.3606 0.3220 0.4556 0.3996 0.3506 0.3075 0.2697 0.4104 0.3538 0.3050 0.2630 0.2267 0.3349 0.2791 0.2326 0.1938 0.1615 10 0.3704 0.3139 0.2660 0.2255 0.1911 0.1619 0.1372 0.1163 0.0985 0.0835 11 12 13 14 0.804 0.788 0.773 0.758 0.743 0.6496 0.6246 0.6006 0.5775 0.5553 0.5268 0.4970 0.4688 0.4423 0.4173 0.4289 0.3971 0.3677 0.3405 0.3152 0.3505 0.3186 0.2897 0.2633 0.2394 0.2875 0.2567 0.2232 0.2046 0.1827 0.2366 0.2076 0.1821 0.1597 0.1401 0.1954 0.1685 0.1452 0.1252 0.1079 0.1346 0.1122 0.0935 0.0779 0.0649 15 16 17 18 19 20 0.728 0.714 0.700 0.686 0.673 0.5339 0.5134 0.4936 0.4746 0.4564 0.3936 0.3714 0.3503 0.3305 0.3118 0.2919 0.2703 0.2502 0.2317 0.2145 02176 0.1978 0.1799 0.1635 0.1486 0.1831 0.1456 0:1300 0.1161 0.1037 0.1229 0.1078 0.0946 0.0829 0.0728 0.0930 0.0802 0.0891 0.0596 0.0514 0.0708 0.0600 0.0508 0.0431 0.0365 0.0541 0.0451 0.0376 0.0313 0.0261 21 22 23 24 25 0.680 0.847 0.834 0.822 0.610 0.4388 0.4220 014057 0.3901 0.3751 0.2942 02775 0.2618 0.2470 0.2330 0.1987 0.1839 0.1703 0.1577 0.1460 0.1351 0.1228 0.1117 0.1015 0.0323 0 0926 0.0826 0.0738 0.0659 010588 0.0638 010560 0.0491 0.0431 00378 0.0443 0.0382 0.0329 0.0284 0.0245 0.0309 0.0252 0.0222 0.0188 0.0160 0.0217 0.0181 0.0151 0.0128 0.0105 30 35 40 45 50 0.552 0.500 0.453 0.410 03372 0.3083 0.2534 0.2083 0.1712 0.1407 0.1741 0.1301 0.0972 0.0727 0.0543 0.0994 0676 0.0460 0.0313 0.0213 0.0573 0.0358 21 010189 0.0107 0.0051 0.0035 00196 0.0102 0.0053 0.0027 0.0014 0.0116 0.0055 0.0020 0.0013 0.0008 0.0070 0.0030 0.0013 0.0006 0.0003 0.0042 0.0017 0.0007 0.0003 0.0001 0.0137 0.005 TARIT FACTORS TO CALCULATING THE TRESENT VALUE GF AN ANNUITY OF $ Discount Rate lo. of Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 1 2 3 0.980 1.942 2.884 3.808 4.713 0.9615 1.8861 2.7751 3.6299 4.4518 0.9434 1.8334 2.6730 3.4651 4.2124 0.9259 1.7833 2.5771 3.3121 3.9927 0.9091 1.7355 2.4869 3.1699 3.7908 0.8929 1.6901 2.4018 3.0373 3.6048 0.8772 1.6467 2.3216 2.9137 3.4331 0.8621 1.6052 2.2459 2.7982 3.2743 0.8475 1.5656 2.1743 2.6901 3.1272 0.8333 1.5278 2.1065 2.5887 2.9906 6 7 5.601 6.472 7.325 8.162 8.983 5.2421 6.0021 6.7327 7.4353 8.1109 8 9 10 4.9173 5.5824 6.2098 6.8017 7.3601 4.6229 5.2064 5.7466 6.2469 6.7101 4.3553 4.8684 5.3349 5.7590 6.1446 4.1114 4.5638 4.9676 5.3282 5.6502 3.8887 4.2883 4.6389 4.9464 5.2161 3.6847 4.0386 4.3436 4.6065 4.8332 3.4976 3.8115 4.0776 4.3030 4.4941 3.3255 3.6046 3.8372 4.0310 4.1925 11 12 13 14 15 9.787 10.575 11.348 12.106 12.849 8.7605 9.3851 9.9856 10.5631 11.1184 7.8869 8.3838 8.8527 9.2950 9.7122 7.1390 7.5361 7.9038 8.2442 8.5595 6.4951 6.8137 7.1034 7.3667 7.6061 5.9377 6.1944 6.4235 6.6282 6.8109 5.4527 5.6603 5.8424 6.0021 6.1422 5.0286 5.1971 5.3423 5.4675 5.5755 4.6560 4.7932 4.9095 5.0081 5.0916 4.3271 4.4392 4.5327 4.6106 4.6755 16 17 18 19 13.578 14.292 14.992 15.678 16,351 11.6523 10.1059 12. 1657 10.4773 12.6593 10.8276 13.1339 11.1581 13.5903 11.4699 8.8514 9.1216 9.3719 9.6036 9.8181 7.8237 8.0216 8.2014 8.3649 8.5136 6.9740 7 1196 7.2497 73658 7.4894 6.2651 6.3729 6.4674 6.5504 6.6231 5.6685 5.7487 5.8178 5.8775 5.9288 5. 1624 5.2223 5.2732 5.3162 53527 4.7296 4.7746 4.8122 4.8435 4.8696 5.9731 21 22 6.6870 6.7429 23 24 25 17.011 17.658 18.292 18.914 19.523 14.0292 11.7641 14.4511 12.0416 148568 12 3034 15 2470 12.5504 15.6221 12.7834 10.0168 10.2007 1023711 10.5288 10.6748 8.6487 B.7715 8.8832 8.9847 9.0770 7.5620 7.5446 77184 7.7843 7.8431 6.7921 6.8351 68729 6.0113 8.0442 6.0728 610971 5.3837 5.4099 5.4321 5.4509 5.4869 4.8913 4.9094 4.9245 4.9371 4.9476 94269 30 35 22 396 17.2920 13.7648 24.999 18.6646 14 4982 27.355 19.792815.0463 29.490 20.7200 15.4558 31.424 21:4822 15.7819 112578 $16546 11 9246 12. 1084 12 2335 19.0442 9.779 98628 9.914 8.0552 821755 8.2438 82825 8.3045 70027 TO700 T-1050 71232 7.1327 6.1772 62153 6.2335 5.2421 5.2463 5.5168 5.5386 5.5482 5.5523 5.5501 4.9789 4.9915 4.9966 4.9985 4.9995 45