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A $100,000 initial investment will generate the following present values of net cash flows. What is the breakeven time for this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Round "Break even time" answer to 1 decimal place.) Year Initial investment 1. 2. 3. 4 5. Samn Cumulative Present Value of Present Value of Net Cash Flows Net Cash Flows $ (145, 100) $ (145, 100) 46,364 (98,736) 42,146 (56,590) 33,380 (23,210) 34,833 11,623 31,666 43,289 Break-even time years Table B.1* Present Value of 1 p=1/(1+i)" Rate Periods 2% 3% 4% 5% 6% 1% 0.9901 7% 8% 9% 10% 12% 15% Periods 1 0.9804 0.9709 0.9615 0.9524 0.9346 0.9259 0.9174 0.9091 0.8929 0.8696 0.9434 0.8900 1 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8734 0.8573 0.8417 0.8264 0.7972 0.7561 2 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7118 0.6575 3 0.7513 0.6830 4 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 4 5 0.9515 0.9057 0.8626 0.8219 0.6355 0.5674 0.7835 0.7473 0.5718 0.4972 0.7130 0.6806 0.6499 0.6209 5 6 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5066 6 7 0.9327 0.8706 0.8131 0.4323 0.3759 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4523 7 8 0.9235 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4039 0.3269 8 0.8535 0.8368 9 0.9143 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606 9 0.2843 0.2472 10 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4224 0.3220 10 0.4632 0.4289 0.3855 0.3505 11 0.8963 0.8043 0.7224 0.5847 0.5268 0.4751 0.3875 0.2875 0.2149 11 0.6496 0.6246 12 0.8874 0.7885 0.7014 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2567 0.1869 12 13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 13 0.3677 0.3405 0.3262 0.2992 0.2897 0.2633 0.2292 0.2046 14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.1625 0.1413 0.1229 14 15 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.1827 15 ala 16 0.8528 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1069 16 0.7284 0.7142 0.6232 0.6050 0.1631 0.1456 17 0.8444 0.4363 0.3166 0.2703 0.2311 0.1978 0.0929 17 0.5134 0.4936 0.3714 0.3503 18 0.7002 0.5874 0.2959 0.2502 0.2120 0.0808 18 0.8360 0.8277 0.4155 0.3957 0.1799 0.1635 0.1300 0.1161 19 0.6864 0.5703 0.4746 0.3305 19 0.2317 0.1945 0.2765 10.2584 0.0703 0.0611 20 0.8195 0.6730 0.4564 0.3769 0.3118 0.2145 0.1784 0.1037 0.1486 0.5537 0.4776 20 25 25 0.6095 0.3751 0.2953 0.2330 0.0304 0.1842 0.1460 0.0923 0.0588 30 0.0334 0.0151 30 0.4120 0.3083 0.0573 0.2314 0.1741 0.1314 0.0994 0.7798 0.7419 0.7059 0.6717 0.1160 0.0754 0.0490 0.0318 0.5521 0.5000 0.4529 35 0.0075 0.3554 0.0189 0.1301 0.0356 0.0937 0.0676 0.2534 0.2083 0.1813 0.1420 0.0037 40 0.0221 40 0.0107 0.0972 0.3066 0.0668 0.0460 Table B.2 Future Value of 1 f=(1 + 7)" Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 0 15% 1.0000 Periods 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1 0 1.0100 1.0200 1.0300 1.0400 1.0500 1.0600 1.0700 10800 1.0000 1.1500 1.0900 1.1000 1.1200 2 1 1.0201 1.0404 1.0609 1.0816 1.1025 1.1236 1.1449 1.1664 1.2100 1.2544 1.3225 3 2. 1.0303 1.0612 1.0927 1.1249 1.1576 1.1881 1.2950 1.1910 1 2250 1.3310 1.4049 1.5209 3 4 1.0406 1.0824 1.2597 1.3605 1.1255 1.1699 1.3108 1.4116 1.4641 1.51835 1.7490 4 5 1.2625 1.3382 1.0510 1.1041 1.1593 1.4026 1.4693 1.5386 1.2167 1.2653 1.7623 2.0114 5. 6 1.1262 1.1487 1.6105 1.7716 1.1941 1.2299 1.5007 1.5869 1.6771 1.9738 2.3131 6 7 1.0615 1.0721 1.0829 1.0937 1.4185 1.5036 1.3159 1.7138 1.8280 7 8 1.1717 1.2668 1.2155 1.2763 1.3401 1.4071 1.4775 1.5513 1.6289 1.7103 1.7959 1.6058 1.7182 1.3686 2.2107 2.4760 2.6600 3.0590 1.9487 2.1436 2.3579 8 9 1.1951 1.3048 1.5938 1.6895 1.7908 1.8509 1.9990 1.4233 1.9926 2.1719 2.3674 2.7731 3.5179 9 10 1.8385 1.9672 1.1046 1.2190 1.3439 1.4802 2.1589 2.5937 3.1058 4.0456 10 11 1.2434 1.8983 2.1049 2.3316 2.5804 1.1157 1.1268 2.8531 3.4785 4.6524 11 1.5395 1.6010 12 2.0122 2.2522 2.5182 2.8127 3.1384 3.8960 5.3503 12 1.3842 1.4258 1.4685 1.5126 13 1.2682 1.2936 1.3195 1.1381 1.6651 1.8856 2.1329 2.4098 2.7196 3.0658 4.3635 6.1528 13 3.4523 3.7975 14 1.1495 1.7317 2.2609 3.3417 4.8871 7.0757 14 2.9372 3.1722 15 1.1610 -1.5580 1.8009 4.1772 2.5785 2.7590 2.9522 5.4736 8.1371 15 1.9799 2.0789 2.1829 2.2920 1.3459 13728 1.4002 2.3966 2.5404 3.6425 3.9703 16 1.1726 1.6047 1.8730 3.4259 4.5950 6.1304 9.3576 16 17 1.6528 1.9479 2.6928 3.1588 3.7000 4.3276 5.0545 17 6.8660 7.6900 18 1.7024 2.0258 2.8543 3.3799 3.9960 4.7171 1.1843 1.1961 1.2081 1.2202 18 1.4282 1.4568 10.7613 12.3755 14.2318 2.4066 2.5270 19 2.1068 3.6165 8.6128 19 1.7535 1.8061 4.3157 4.6610 5.1417 5.6044 20 1.4859 3.0256 3.2071 4.2919 3.8697 9.6463 5.5599 6.1159 6.7275 10.8347 17.4494 2.1911 2.6658 16.3665 20 2.6533 3.3864 25 1.6406 2.0938 5.4274 6.8485 8.6231 17.0001 32.9190 25 1.2824 1.3478 Slalo 30 1.8114 30 2.4273 3.2434 4.3219 5.7435 13.2677 29.9599 66.2118 133.1755 35 1.9999 2.8139 1.4166 3.9461 7.6861 7.6123 10.6766 14.9745 135 10.0627 14.7853 21.7245 28. 1024 20.4140 52.7996 5.5160 7.0400 3.2620 4.8010 31.4094 45.2593 10.2857 40 93.0510 1.4889 2.2080 267.8635 40 TUsed to compute the future value of a known present amount. For example: What is the accumulated value of $3,000 invested today at 8% compounded quarterly for 5 years? Using the facto is 1.4859. The accumulated value is $4,457.70 ($3,000 x 1.4859). Table B.3 Present Value of an Annuity of 1 p= [1 - 1/(1 + i)"]li Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% Periods 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.8929 0.8696 1 2 1.9704 1.9416 1.9135 1.8861 1.8594 1.8334 1.8080 1.7355 1.6901 1.6257 2 3 2.8286 2.7751 2.7232 1.7591 2.5313 2.9410 3.9020 2.6730 2.8839 3.8077 1.7833 2.5771 3.3121 2.4869 2.6243 3.3872 2.2832 3 4 3.7171 3.6299 3.5460 3.4651 3.2397 3.1699 2.4018 3.0373 3.6048 2.8550 4 5 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 4.8534 5.7955 4.7135 5.6014 3.8897 3.7908 3.3522 5 6 5.4172 5.2421 4.9173 4.7665 4.6229 4.4859 43553 4.1114 3.7845 6 5.0757 5.7864 7 6.4720 6.2303 6.0021 5.5824 5.3893 5.2064 4.5638 4.1604 7 8 6.7282 7.6517 8.5660 5.0330 5.5348 4.8684 5.3349 17.3255 7,0197 6.7327 6.4632 6.2098 5.9713 5.7466 4.9676 4.4873 8 9 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.3282 4.7716 10 9 10 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 6.7101 6.4177 6.1446 5.6502 7.0236 7.4987 11 9.7868 9.2526 8.7605 8.3064 7.8869 7.1390 6.8052 6.4951 5.9377 5.0188 5.2337 5.4206 10.3676 11.2551 11 12 10.5753 9.9540 9.3851 8.8633 8.3838 7.9427 7.5361 7.1607 6.8137 6.1944 12 13 11.3484 10.6350 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 6.4235 13 12.1337 13.0037 14 12.1062 10.5631 9.8986 8.7455 8.2442 7.7862 6.6282 14 11.2961 11.9379 9.2950 9.7122 7.3667 7.6061 5.5831 5.7245 5.8474 5.9542 15 13.8651 12.8493 11.1184 10.3797 9.1079 8.5595 8.0607 6.8109 15 16 13.5777 9.4466 8.8514 8.3126 7.8237 6.9740 16 14 7179 15.5623 10.1059 10.4773 17 14.2919 9.1216 6.0472 17 12.5611 13.1661 13.7535 14.3238 14.8775 10.8378 11 2741 11.6896 12.0853 11.6523 12.1657 12.6593 13.1339 13.5903 9.7632 10.0591 18 8.5436 8.7556 10.8276 14.9920 15.6785 16.3514 6.1280 8.0216 8.2014 8.3649 18 9.3719 9.6036 19 11.1581 8.9501 19 7.1196 7.2497 7.3658 7.4694 7.8431 6.1982 6.2593 20 12.4622 10.3356 10.5940 11.6536 11.4699 16.3983 17.2260 18.0456 22.0232 25.8077 29.4086 20 9.1285 9.8226 25 19.5235 17.4131 15.6221 14.0939 25 9.8181 10.6748 11.2578 12.7834 8.5136 9.0770 9.4269 30 19.6004 22.3965 17.2920 13.7648 12.4090 8.0552 10.2737 15.3725 16.3742 6.4641 6.5660 6.6166 6.6418 30 35 35 21.4872 11.6546 10.5668 24.9986 27.3555 18.6646 19.7928 14.4982 15.0463 12.9477 13.3317 9.6442 9.7791 8.1753 8.2438 40 40 32.8347 23.1148 17.1591 11 9246 10.7574 *Used to calculate the present value of a series of equal payments made at the end of each period. For example: What is the present value of $2,000 per year for 10 years assuming an annual inte years is the equivalent of $12,835 today ($2,000 * 6.4177). Table B.4$Future Value of an Annuity of 1 f=[(1 + i)" - 1jli Rate Periods 1% 2% 3% 4% 5% 7% 8% 6% 1.0000 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 2 2.0100 2.0200 2.0300 2.0400 2.0500 2.0600 2.0700 2.0800 3 3.0301 3.0604 3.0909 3.1216 3.1525 3.1836 3.2149 3.2464 4. 4.0604 4.1216 4.1836 4.2465 4.3746 4.4399 4.5061 4.3101 5.5256 5 5.1010 5.2040 5.3091 5.4163 5.6371 5.7507 5.8666 6 6.1520 6.6330 6.8019 6.9753 7.1533 6.3081 7.4343 6.4684 7.6625 7.3359 8.9228 7 7.2135 7.8983 8.1420 8.3938 8.6540 8 8.2857 8.5830 8.8923 9.2142 9.5491 9.8975 10.2598 10.6366 12.4876 9 9.7546 10.1591 10.5828 11.0266 11.4913 11.9780 9.3685 10.4622 10 10.9497 11.4639 12.5779 13.8164 14.4866 12.0061 13.4864 13.1808 14.9716 11 11.5668 12.1687 12.8078 14.2068 15.7836 16.6455 9% 10% 12% 15% Periods 1.0000 1.0000 1.0000 1.0000 1 2.0900 2.1000 2.1200 2.1500 2 3.2781 3.3100 3.3744 3.4725 3 4.5731 4.6410 4.7793 4.9934 4 5.9847 6.1051 6.3528 6.7424 5 7.5233 7.7156 8.1152 8.7537 6 9.2004 9.4872 10.0890 11.0668 7 11.0285 11.4359 12.2997 13.7268 8 13.0210 13 5795 14.7757 16.7858 9 15.1929 15.9374 17.5487 20.3037 10 17 5603 18.5312 20.6546 24.3493 11 20.1407 21.3843 24.1331 29.0017 12 22.9534 24.5227 28.0291 34.3519 13 26.0192 27.9750 32.3926 40.5047 14 29.3609 31.7725 37.2797 47.5804 15 33.0034 35.9497 42.7533 55.7175 16 36.9737 40.5447 48.8837 65.0751 17 41 3013 45.5992 55.7497 75.8364 18 46.0185 51.1591 63.4397 88.2118 19 51.1601 57.2750 72.0524 102.4436 20 84.7009 98.3471 133.3339 212.7930 25 136.3075 164.4940 241 3327 434.7451 30 215.7108 271.0244 431.6635 35 881.1702 337.8824 442.5926 40 767 0914 1,779.0903 12 13.4121 15.0258 15.9171 16.8699 17.8885 18.9771 13 12.6825 13.8093 14.9474 14.1920 15.6178 17.0863 16.6268 18.8821 14.6803 15.9739 21.4953 14 18.2919 20.0236 17.7130 19.5986 21.5786 15 16.0969 17.2934 18.5989 21.0151 23.2760 25.6725 24.2149 27.1521 30.3243 33.7502 16 17.2579 18.6393 20.1569 21.8245 23.6575 17 18.4304 21.7616 23.6975 25.8404 28.2129 20.1406 22.5505 25.1290 27.8881 30.8402 33.9990 37.3790 40.9955 63.2490 94.4608 18 20.0121 21.4123 22.8406 19.6147 23.4144 25.6454 28.1324 30.9057 19 20.8109 33.7600 37.4502 41.4463 45.7620 27.6712 29.7781 30.5390 33.0660 20 22.0190 24.2974 36.7856 25.1169 26.8704 36.4593 47.5754 allo 25 32.0303 41.6459 73.1059 54.8645 47.7271 30 28.2432 34.7849 41.6603 79.0582 40.5681 56.0849 66.4388 90.3203 35 111.4348 49.9945 73.6522 113.2832 172.3168 259.0565 138.2369 199.6351 60.4621 75.4013 154.7620 95.0255 48.8864 120.7998 40 60.4020 $Used to calculate the future value of a series of equal payments made at the end of each period. For example: What is the future value of $4,000 per year for 6 years assuming an annual int accumulates to $29,343.60 ($4,000 ~ 7.3359)