ok to ces The dean of the School of Fine Arts is trying to decide whether to purchase a copy machine to place in the lobby of the building. The machine would add to student convenience, but the dean feels compelled to earn an 6 percent return on the investment of funds Estimates of cash inflows from copy machines that have been placed in other university buildings indicate that the copy machine would probably produce incremental cash inflows of approximately $12.000 per year. The machine is expected to have a three-year useful life with a zero salvage value. (Use appropriate factor(s) from the tables provided.) Required a. Use Present Value Appendix PV of $1 to determine the maximum amount of cash the dean should be willing to pay for a copy machine. (Round your intermediate calculations and final answer to 2 decimal places.) b. Use Present Value Appendix PVA of $1, to determine the maximum amount of cash the dean should be willing to pay for a copy machine. (Round your final answer to 2 decimal places.) a. Maximum amount (PV) b. Maximum amount (PVA) TABLE 1 PRESENT VALUE OF $1 n 4% 1 2 8 6% 7% 8% 9% 10% 12% 14% 20% 5% 16% 0.961538 0.952381 0.943396 0.934579 0.925926 0.917431 0.909091 0.892857 0.877193 0.862069 0.833333 0.924556 0.907029 0.889996 0.873439 0.857339 0.841680 0.826446 0.797194 0.769468 0.743163 0.694444 3 0.888996 0.863838 0.839619 0.816298 0.793832 0.772183 0.751315 0.711780 0.674972 0.640658 0.578704 4 0.854804 0.822702 0.792094 9.762895 0.735030 0.708425 0.683013 0.635518 0.592080 0.552291 0.482253 5 0.821927 0.783526 0.747258 0.712986 0.680583 0.649931 0.620921 0.567427 0.519369 0.476113 0.401878 6 0.790315 0.746215 0.704961 0.666342 0.630170 0.596267 0.564474 0.506631 0.455587 0.410442 0.334898 7 0.759918 0.710681 0.665057 0.622750 0.583490 0.547034 0.513158 0.452349 0.399637 0.353830 0.279082 0.730690 0.676839 0.627412 0.582009 0.540269 0.501866 0.466507 0.403883 0.350559 0.305025 0.232568 9 0.702587 0.644609 0.591898 0.543934 0.500249 0.460428 0.424098 0.360610 0.307508 0.262953 0.193807 10 0.675564 0.613913 0.558395 0.508349 0.463193 0.422411 0.385543 0.321973 0.269744 0.226684 0.161506 11 0.649581 0.584679 0.526788 0.475093 0.428883 0.387533 0.350494 0.287476 0.236617 0.195417 0.134588 12 0.624597 0.556837 0.496969 0.444012 0.397114 0.355535 0.318631 0.256675 0.207559 0.168463 0.112157 13 0.600574 0.530321 0.468839 0.414964 0.367698 0.326179 0.289664 0.229174 0.182069 0.145227 0.093464 14 0.577475 0.505068 0.442301 0.387817 0.340461 0.299246 0.263331 0.204620 0.159710 0.125195 0.077887 15 0.555265 0.481017 0.417265 0.362446 0.315242 0.274538 0.239392 0.182696 0.140096 0.107927 0.064905 16 0.533908 0.458112 0.393646 0.338735 0.291890 0.251870 0.217629 0.163122 0.122892 0.093041 0.054088 17 0.513373 0.436297 0.371364 0.316574 0.270269 0.231073 0.197845 0.145644 0.107800 0.080207 0.045073 18 0.493628 0.415521 0.350344 0.295864 0.250249 0.211994 0.179859 0.130040 0.094561 0.069144 0.037561 19 0.474642 0.395734 0.330513 0.276508 0.231712 0.194490 0.163508 0.116107 0.082948 0.059607 0.031301 20 0.456387 0.376889 0.311805 0.258419 0.214548 0.178431 0.148644 0.103667 0.072762 0.051385 0.026084 TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 1 4% 0.961538 5% 6% 7% 8% 9% 0.952381 0.943396 2 1.886095 1.859410 1.833393 3 2.775091 2.723248 2.673012 4 3.629895 3,545951 3.465106 S 4.451822 4.329477 4.212364 6 5.242137 0.934579 0.925926 0.917431 1.808018 1.783265 1.759111 2.624316 2.577097 2.531295 3.387211 3.312127 3.239720 3.169865 4.100197 3.992710 3.889651 3.790787 5.075692 4.917324 4.766540 4.485919 4.355261 2.486852 10% 14% 0.909091 0.892857 0.877193 1.735537 1.690051 1.646661 2.401831 2.321632 12% 16% 20% 0.862069 0.833333 1.605232 1.527778 2.245890 2.106481 3.037349 2.913712 2.798181 2.588735 3.604776 3.433081 3.274294 2.990612 4.622880 4.111407 3.888668 3.684736 3.325510 7 6.002055 5.786373 5.582381 5.389289 5.206370 5.032953 4.868419 B 6.732745 6.463213 6.209794 5.971299 5.746639 5.534819 5.334926 9 7.435332 7.107822 6.801692 6.515232 6.246888 5.995247 5.759024 10 8.110896 7.721735 7.360087 7.023582 6.710081 6.417658 6.144567 4,563757 4.288305 4.967640 4.638864 5.328250 4.946372 5.650223 5.216116 4.038565 3.604592) 4.343591 3.837160 4.606544 4.030967 4.833227 4.192472 11 8.760477 8.306414 7.886875 7.498674 7.138964 12 9.385074 8.863252 8.383844 7.942686 13 9.985648 9.393573 8.852683 8.357651 14 10.563123 9.898641 9.294984 8.745468) 15 11.118387 10.379658 9.712249 9.107914 16 11.652296 10.837770 10.105895 9.446649 6.805191 6.495061 7.536078 7.160725 6.813692 7.903776 7.486904 7.103356 8.244237 7.786150 7.366687 8.559479 8.060688 7.606080 8.851369 8.312558 7.823709 5.937699 5.452733 5.028644 4.327060 6.194374 5.660292 5.197107 4.439217 6.423548 5.842362 5.342334 4.532681 6.628168 6.002072 5.467529 4.610567 6.810864 6.973986 17 12.165669 18 12.659297 19 13.133939 20 13.590326 11.274066 10.477260 10.827603 11.689587 12.085321 11.158116 12.462210 11.469921 9.763223 10.059087 10.335595 10.594014 9.121638 8.543631 8.021553 9.371887 8.755625 8.201412 9.603599 8.905115 9.818147 9.128546 7.119630 7.249670 8.364920 7.365777 8.513564 7.469444 6.623131 5.575456 6.142168 4.675473 6.265060 5.668497 4.729561 6.372859 5.748704 4.774634 6.467420 5.817848 4.812195 6.550369 5.877455 5,928841 4.843496 4.869580