nuhe purchase. Dowlen, Inc, ls considering the purchase of a machine that would cost $150,000 and would last for 6 years. At the end of 6 years, the machine would have a salvage value of $23.000. The machine would reduce labor and other costs by $36.000 per year. Additional working capital of $6.000 would be needed immediately. All of this working capital would be recovered at the end of the life of the machine, The company requires a minimum pretax return of 12% on all investment projects. The net present value of the proposed project is closest to (ignore income taxes Click here to view Exhibit 138.-1 and Exhibit 138.2 to determine the appropriate discount factorfs) using the tables provided $9,657 $(2,004) $6,699 $13,223 Garrison 1Ge/exhibit 138 1 jpg EXHIBIT 13B-1 Present Value of $t 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 O 962 0.952 0.943 0.935 0926 0.9 17 OSO9 0901 0.893 0885 0877 O 870 O862 O855 O 847 O840 833 O 826 0820 20.925 0.907 0.890 0.873 0857 0.842 0.826 0812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 3 0.889 0864 0.840 0816 0794 0.772 0.751 0731 0. 4 0.855 0.823 0.792 0.763 0 5 0822 0.784 0.747 0.713 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0833 0.826 0.820 0813 0.806 0.800 0.706 0.694 0.683 0.672 0.661 0.650 0.640 712 0.693 0.675 0.658 0641 0.624 0609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 0.572 0.552 0534 0516 0.499 0.482 0467 0451 0.437 0.423 0410 30681 0.650 0621 0593 0.567 0.543 0519 0.497 0.476 0456 0437 0419 0402 0.386 0.370 0.355 0.341 0.328 6 0.790 0746 0.705 0.666 0630 0.596 0.564 0535 0507 0.480 0456o 7 0.760 0711 0.665 0.623 0583 0.547 0.513 0.482 o .452 0.425 0.400 0.376 0.354 0.333 0314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 0.540 0.502 0.467 0434 O 404 0.376 0.35 1 0327 0305 0285 0266 0,249 0233 0.218 0204 191 O179 0.168 9 0.703 0645 0.592 0.544 0500 0.460 0.424 0391 0.361 0.333 0.308 0.284 0.263 0.243 10 0676 0.614 0.558 0.508 0463 0.422 0.386 0.352 0.322 0.295 0.270 0247 0227 0.208 0.191 0.176 0.162 0.149 0137 0.126 0.116 0.10 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 0 352 0.322 0.295 0270 0.247 227 0.208 o.191 0.176 7 0.650 0 585 0.527 O 475 0 429 0.388 0 350 0.317 0.287 0.261 O.237 0 215 0.195 0.178 0.162 0.148 0.135 O.123 O 112 O.103 .094 O 086 12 0.625 0557 0.497 0444 0.397 0356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.02 0092 0.083 4076 0.069 13 0601 0530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0093 0.084 0075 0068 0061 0.055 14 0577 0505 O 442 0.388 0340 o.299 0.263 0232 0.205 0.181 0.160 0.141 0.125 0.111 0099 0.088 0078 0.069 0062 0055 0049 0044 15 0555 0.481 0417 0.362 0315 0275 0239 0.209 0.183 0 160 0.140 0.123 0.108 0095 0084 0074 .065 0057 0051 0045 o040 0035 0.534 0.458 0.394 0.339 0292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0071 0.062 0.054 0.047 0042 0036 0.032 o.028 17 0513 0436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0093 0080 0.069 0.060 0.052 0.045 0.039 o.034 0.030 0.026 0.023 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0081 0.069 0059 0.051 0044 0.038 0.032 0028 0024 0.021 0018 0.475 0.396 0331 0.277 0232 0.194 0.164 0 138 0.116 0098 0.083 0070 0.060 0.051 0.043 0.037 0031 0027 0.023 0.020 0.017 0014 20 0.456 0377 0.3 12 0.258 0.215 0.178 0.149 0.124 0.104 0087 0073 0061 OO51 O043 037 0031 0.026 0.022 0.019 0.016 0.014 0.012 21 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.112 0.093 0.077 0064 0053 0.044 0.037 0031 0026 0.022 0.018 0.015 0013 0.011 0.009 22 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0083 0068 0.056 0046 0038 0032 0026 0022 0018 0015 0013 0011 0009 0.007 23 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0091 0074 0.060 0.049 0.040 0033 0027 0.022 0018 0015 0012 0010 0009 0.007 0.006 24 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0082 0066 0053 0043 0035 0.028 0023 0019 0015 0013 0.010 0.008 0.007 0006 0005 25 0.375 0.295 0.233 0.184 0.146 0.116 0092 0.074 0059 0047 0038 0030 0024 0.020 0.016 0013 0.010 0.009 0.007 0.006 0005 0004 26 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0053 0.042 0.033 0026 0.021 0017 0.014 0011 0.009 0.007 0006 0.005 0.004 0.003 27 0.347 0268 0.207 0.161 O 125 0098 0076 0.060 0047 0.037 0.029 0023 0.018 0,014 0011 0.009 .007 0.006 0.005 0004 0.003 0.002 28 0.333 0.255 0.196 0.150 0.116 0.090 0069 0054 0042 0 033 0.026 0020 0016 0.012 0010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 29 0.321 0.243 0.185 0.141 0.107 0082 0.063 0048 0.037 0029 0.022 0017 0014 0011 0.008 0.006 0.005 0004 0003 0002 0.002 0.002 0.308 0 231 0.174 0.131 0.099 0075 0057 0 044 0033 0026 0020 0015 0.012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0 208 0.142 0097 0067 0.046 0032 0022 0015 0011 0.008 0.005 0004 0.003 0002 0001 0001 0001 0000 0000 0000 0,000 0,000 EXHIBIT 13B-2 Present Value of an Anrulty of $1 in Arrears;1- periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 20% 19% 21% 22% 23% 24% 25% 1 0.962 2 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1647 1.626 1.605 1 0.952 0.943 0935 0.926 0917 0.909 0.901 0893 0.885 0877 0.870 0862 0 .855 0.847 0.840 0.833 0826 0820 0 813 0 806 0.800 .585 1,566 1547 1528 1.509 1492 1474 11440 2.775 2.723 2.673 2624 2577 2.531 2.487 2.444 2.402 2.361 2.322 2.283 2246 2210 2.174 2140 2.106 2.074 2042 2.011 1981 1.952 3.465 3.387 3.312 3.240 3.170 3.102 3037 2974 2.914 2.855 2.798 2.743 2690 2639 2.589 2540 2.494 2.448 2.404 2362 4.452 4.329 4212 4.100 3993 3890 3.791 3.696 3605 3517 3433 3.352 3274 3.199 3.127 3058 2991 2926 2.864 2.803 2745 2689 4 3630 3.546 6 5242 5.076 4917 4767 4623 4.486 4.355 4231 4111 76.002 5.786 5.582 5389 5.206 5033 4.868 4712 4564 4423 4288 4.1 8 6.733 6463 6.210 5971 5747 5.535 5.335 5.146 4.968 4.799 4639 4.487 4344 4.207 4.078 3.954 3837 3726 3619 3.518 3.421 3998 3.889 3.784 3685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 60 4.039 3922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 3.329 9 7.435 7.108 6802 6515 6.247 5.995 5.759 5537 5.328 5.132 4.946 4.772 4607 4.451 4.303 4.163 4031 3.905 3786 3.673 3566 3.463 10 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5650 5.426 5216 5019 4.833 4.659 4494 4.339 4.192 4.054 3923 3.799 3.682 3.571 11 8.760 8.306 7.887 7.499 7.139 6805 6.495 6.207 5.938 5687 5453 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3656 12 9.385 8.863 8.384 7943 7.536 7.161 6814 6492 6.194 5918 5660 5.421 5.197 4988 4.793 4.611 4.439 4.278 4.127 3285 3851 3.725 13 9986 9.394 8.853 8.358 7904 7.487 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4910 4.715 4.533 4.362 4 203 4.053 3912 3.780 14 10563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6628 6302 6.002 5.724 5.468 5.229 5.008 4.802 4611 4.432 4.265 4.108 3962 3.824 15 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6811 6.462 6.142 5.847 5.575 5.324 5092 4.876 4.675 4489 4.315 4.153 4.001 3.859 16 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 6.974 6.604 6 265 5.954 5.668 5.405 5.162 4.938 4.730 4 536 4.357 4.189 4.033 3.887 17 12.166 11.274 10.477 9763 9.122 8.544 8.022 7.549 7.120 6.729 6.373 6047 5.749 5.475 5.222 4.990 4.775 4.576 4391 4.219 4.059 3.910 18 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 7.250 6.840 6467 6.128 5.818 5.534 5.273 5.033 4.812 4.608 4.419 4.243 4.080 3.928 19 13.134 12.085 11.158 10.336 9604 8.950 8.365 7839 7.366 6.938 6.550 6.198 5.877 5584 5316 5.070 4.843 4.635 4.442 4 263 4097 3942 20 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7963 7469 7025 6.623 6.259 5.929 5.628 5.353 5.101 4870 4.657 4.460 4.279 4.110 3.954 21 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7.562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 4.451 13.163 12.042 11.061 10.201 9.442 8.772 8.176 7.645 7.170 6.743 6359 6.011 5.696 5410 5.149 4.909 4.690 4.488 4.302 4.130 3970 23 14.857 13.489 12 303 11.272 10.371 9.580 8.883 8.266 7.718 7.230 6792 6.399 6.044 5.723 5.432 5.167 4.925 4.703 4.499 4.311 4.137 3.976 24 15.247 13.799 12.550 11.469 10.529 9.707 8985 8.348 7.784 7.283 6.835 6.434 6073 5746 5451 5.182 4.937 4.713 4.507 4.318 4.143 3.981 25 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8422 7.843 7.330 6873 6.464 6097 5.766 5467 5.195 4.948 4.721 4.514 4.323 4.147 3.985 26 15.983 14.375 13.003 11.826 10.810 9929 9.161 8488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4.956 4.728 4.520 4.328 4.151 3 988 27 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4524 4.332 4.154 3.990 28 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7.984 7441 6961 6.534 6.152 5.810 5.502 5.223 4970 4739 4.528 4.335 4.157 3992 29 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6.983 6551 6166 5.820 5510 5.229 4.975 4743 4.531 4.337 4.159 3994 30 17292 15 372 13765 12.409 11.258 10.274 9.427 8694 8055 7.496 7.003 6 566 6.177 5.829 5517 5,235 4979 4.746 4.534 4.339 4.160 3.995 40 19.793 17,159 15046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6642 6.233 5871 5548 5.258 4.997 4.760 4544 4.347 4.166 3.999 Te anag would have no salvage value. The machine would reduce labor and other operating costs by $61,000 per year. The int new machine is closest to (Ignore income taxes ): ement of Elamin Corporation is considering the purchase of a machine that would cost $365,695 and would have a useful life of 9 years. The machine ernal rate of return on the investment in the Click here to view Exhibit 1,38.1 and Exthibalt 12.2, to determine the appropriate discount factorts) using the tables provided. Multiple Choice 0% 12% to%