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ONLY NEED HELP WITH PART C appendix a appendix b appendix d appendix c Investments Quick and Slow cost $1,000 each, are mutually exclusive, and

ONLY NEED HELP WITH PART C image text in transcribed
appendix a
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appendix b
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appendix d
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appendix c
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Investments Quick and Slow cost $1,000 each, are mutually exclusive, and have the following cash flows. The firm's cost of capital is 10 percent. a. According to the net present value method of capital budgeting, which investment(s) should the firm make? Use Appendix B and Appendix D to answer the question. Use a minus sign to enter negative values, if any. Round your answers to the nearest cent. NPV (Investment Quick): \$ NPV (Investment Slow): \$ The firm should make investment(s) b. According to the internal rate of return method of capital budgeting, which investment(s) should the firm make? Use Appendix D to answer the question. Round your answers to the nearest whole number. IRR (Investment Quick): % IRR (Investment Slow): % The firm should make investment(s) c. If Q is chosen, the $1,300 can be reinvested and earn 14 percent. Does this information alter your conclusions concerning investing in Q and S? To answer, assume that S's cash flows can be reinvested at its internal rate of return. Use the rounded internal rate of return from part b. Use Appendix A and Appendix C to answer the question. Round your answers to the nearest cent. Terminal value (Investment Quick): \$ Terminal value (Investment Slow): \$ The firm should make investment(s) Would your answer be different if S's cash flows were reinvested at the cost of capital ( 10 percent)? Use Appendix C to answer the Interest Factors for the Future Value of One Dollar \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{l} Time \\ Period \\ (eg. \\ year) \end{tabular} & 1% & 2% & 3% & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 12% & 14% & 15% & 16% & 18% & 20% & & 28% \\ \hline 1 & .990 & .980 & 971 & 962 & 952 & .943 & .935 & 926 & 917 & .909 & .893 & 877 & .870 & .862 & .847 & .833 & .806 & .781 \\ \hline 2 & .980 & .961 & 943 & 925 & 907 & 890 & 873 & 857 & 842 & 826 & .797 & .769 & .756 & .743 & 718 & 694 & .650 & .610 \\ \hline 3 & 971 & .942 & .915 & 889 & .864 & 840 & 816 & 794 & .772 & .751 & .712 & .675 & .658 & .641 & .609 & .579 & .524 & .477 \\ \hline 4 & .961 & .924 & 889 & .855 & 823 & .792 & .763 & .735 & .708 & 683 & .636 & .592 & 572 & .552 & .516 & .482 & .423 & .373 \\ \hline 5 & .951 & .906 & 863 & .822 & .784 & .747 & .713 & .681 & .650 & .621 & .567 & .519 & .497 & .476 & .437 & .402 & .341 & 291 \\ \hline 6 & .942 & 888 & 838 & .790 & .746 & 705 & .666 & 630 & 596 & .564 & 507 & 456 & 432 & 410 & 370 & 335 & 275 & .227 \\ \hline 7 & .933 & 871 & 813 & .760 & .711 & .665 & .623 & 583 & 547 & 513 & .452 & .400 & 376 & .354 & 314 & .279 & .222 & .178 \\ \hline 8 & 923 & .853 & .789 & .731 & 677 & .627 & 582 & .540 & .502 & .467 & .404 & .351 & 327 & 305 & 266 & .233 & .179 & .139 \\ \hline 9 & .914 & 837 & .766 & .703 & .645 & .592 & .544 & .500 & .460 & 424 & 361 & .308 & .284 & .263 & 226 & .194 & .144 & .108 \\ \hline 10 & .905 & .820 & .744 & .676 & .614 & .558 & .508 & .463 & .422 & 386 & .322 & .270 & 247 & .227 & .191 & .162 & .116 & .085 \\ \hline 11 & 896 & 804 & .722 & .650 & .585 & .527 & .475 & .429 & .388 & 350 & .287 & .237 & .215 & .195 & .162 & .135 & .094 & .066 \\ \hline 12 & .887 & 788 & .701 & .625 & .557 & .497 & .444 & 397 & .356 & .319 & .257 & .208 & .187 & .168 & .137 & .112 & .076 & .052 \\ \hline 13 & .879 & .773 & .681 & .601 & .530 & .469 & .415 & .368 & .326 & .290 & .229 & .182 & .163 & .145 & .116 & .093 & .061 & .040 \\ \hline 14 & .870 & .758 & .661 & 577 & .505 & .442 & .388 & 340 & 299 & 263 & .205 & .160 & .141 & .125 & .099 & .078 & .049 & .032 \\ \hline 15 & 861 & .743 & .642 & .555 & .481 & .417 & .362 & 315 & .275 & 239 & .183 & .140 & .123 & .108 & .084 & .065 & .040 & .025 \\ \hline 16 & .853 & .728 & 623 & .53 & .458 & .394 & .33 & 29 & .25 & 2 & .16 & .12 & .107 & .093 & .071 & .054 & .032 & .019 \\ \hline 17 & 844 & 714 & .605 & .513 & .436 & 371 & 317 & 270 & 231 & .198 & .146 & .108 & .093 & .080 & .060 & .045 & .026 & .015 \\ \hline 18 & .836 & 700 & .587 & .494 & .416 & .350 & .296 & .250 & 212 & .180 & .130 & .095 & .081 & .069 & .051 & .038 & .021 & .012 \\ \hline 19 & .828 & .686 & .570 & .475 & .396 & .331 & .276 & .232 & 194 & .164 & .11 & .083 & .070 & .060 & .043 & .031 & .017 & .009 \\ \hline 20 & 820 & .673 & .554 & .456 & 377 & 312 & .258 & 215 & .178 & .149 & .104 & .073 & .061 & .051 & .037 & .026 & .014 & .007 \\ \hline 25 & .780 & .610 & 478 & .375 & .295 & .233 & .184 & .146 & .116 & .092 & .059 & .038 & .030 & .024 & .016 & .010 & .005 & .002 \\ \hline 30 & .742 & 552 & 412 & 308 & .231 & .174 & .131 & .099 & .075 & .057 & .033 & .020 & .015 & .012 & .007 & .004 & .002 & .001 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{l} Time \\ Period \\ (eg. \\ yeai) \end{tabular} & 18 & 2% & 3% & 4% & 5% & 6% & 7% & 8% & 98 & 10% & 12% & 14% & 16% & 18% & 20% & 24% & 28% & 32% & 36% \\ \hline 1 & 0.990 & 0.980 & 0.971 & 0.962 & 0.952 & 0.943 & 0.935 & 0.926 & 0.917 & 0.909 & 0.893 & 0.877 & 0.862 & 0.847 & 0.833 & 0.806 & 0.781 & 0.758 & 0.735 \\ \hline 2 & 1.970 & 1.942 & 1.913 & 1.886 & 1.859 & 1.833 & 1.808 & 1.783 & 1.759 & 1.736 & 1.690 & 1.647 & 1.605 & 1.566 & 1.528 & 1.457 & 1.392 & 1.332 & 1.276 \\ \hline 3 & 2.941 & 2.884 & 2.829 & 2.775 & 2.723 & 2.673 & 2.624 & 2.577 & 2.531 & 2.487 & 2.402 & 2.322 & 2.246 & 2.174 & 2.106 & 1.981 & 1.868 & 1.766 & 1.674 \\ \hline 4 & 3.902 & 3.808 & 3.717 & 3.630 & 3.546 & 3.465 & 3.387 & 3.312 & 3.240 & 3.170 & 3.037 & 2.914 & 2.798 & 2.690 & 2.589 & 2.404 & 2.241 & 2.096 & 1.966 \\ \hline 5 & 4.853 & 4.713 & 4.580 & 4.452 & 4.329 & 4.212 & 4.100 & 3.993 & 3.890 & 3.791 & 3.605 & 3.433 & 3.274 & 3.127 & 2.991 & 2.745 & 2.532 & 2,345 & 2.181 \\ \hline 6 & 5.795 & 5.601 & 5.417 & 5.242 & 5.076 & 4.917 & 4.766 & 4.623 & 4.486 & 4.355 & 4. & 3.889 & 3.685 & 3.498 & 3.326 & 3.020 & 2.759 & 2.534 & 2.3 \\ \hline 7 & 6.728 & 6.472 & 6.230 & 6.002 & 5.786 & 5.582 & 5,389 & 5.206 & 5.033 & 4.868 & 4.564 & 4.288 & 4.039 & 3.812 & 3.605 & 3.242 & 2.937 & 2.678 & 2.455 \\ \hline 8 & 7.652 & 7.325 & 7.020 & 6.733 & 6.463 & 6.210 & 5.971 & 5.747 & 5.535 & 5.335 & 4.968 & 4.639 & 4.344 & 4.078 & 3.837 & 3.421 & 3.076 & 2.786 & 2.540 \\ \hline 9 & 8.566 & 8.162 & 7.786 & 7.435 & 7.108 & 6.802 & 6.515 & 6.247 & 5.985 & 5.759 & 5.328 & 4.946 & 4.607 & 4.303 & 4.031 & 3.566 & 3.184 & 2.868 & 2.603 \\ \hline 10 & 9.471 & 8.983 & 8.530 & 8.111 & 7.722 & 7.360 & 7.024 & 6.710 & 6.418 & 6.145 & 5.650 & 5.216 & 4.833 & 4.494 & 4.193 & 3.682 & 3.269 & 2.930 & 2.650 \\ \hline 11 & 10.368 & 9.787 & 9.253 & 8.760 & 8.306 & 7.887 & 7.499 & 7.139 & 6.805 & 6.495 & 5.988 & 5.453 & 5.029 & 4.656 & 4 & 3.776 & 3.335 & 2.978 & 2.683 \\ \hline 12 & 11.255 & 10.575 & 9.954 & 9.385 & 8.863 & 8.384 & 7.943 & 7.536 & 7.161 & 6.814 & 6.194 & 5.6 & & 4.793 & 4. & & 3.387 & 3.013 & 2.708 \\ \hline 13 & 12.134 & 11.348 & 10.635 & 9,986 & 9.394 & 8.534 & 8.358 & 7.904 & 7.487 & 7.103 & 6.424 & 5.842 & 5,342 & 4.910 & 4.533 & 3.912 & 3.427 & 3.040 & 2.727 \\ \hline 14 & 13.004 & 12.106 & 11.296 & 10.563 & 9.899 & 9.295 & 8.745 & 8.244 & 7.786 & 7.367 & 6.628 & 6.002 & 5.468 & 5.008 & 4.611 & 3.962 & 3.459 & 3.061 & 2.740 \\ \hline 15 & 13.865 & 12.849 & 11.938 & 11.118 & 10.380 & 9.712 & 9.108 & 8.559 & 8.060 & 7.606 & 6.811 & 6.142 & 5.575 & 5.092 & 4.675 & 4.001 & 3.483 & 3.076 & 2.750 \\ \hline 16 & 14.718 & 13.5 & 12.561 & 11.652 & 10.8 & 10.1 & 9.447 & 8.851 & 8.312 & 7.824 & 6.974 & & & & 4. & 4. & 3.503 & & 2.7 \\ \hline 17 & 15.562 & 14.292 & 13.166 & 12.166 & 11.274 & 10.477 & 9.763 & 9.122 & 8.544 & 8.002 & 7.120 & 6.373 & & 5.222 & 4.775 & 4. & 3.518 & 3.097 & 2.7 \\ \hline 18 & 16.398 & 314.992 & 13.754 & 12.659 & 11.690 & 10.828 & 10.059 & 9.372 & 8.756 & 8.201 & 7.250 & 6.467 & 5.818 & 5.273 & 4.812 & 4.080 & 3.529 & 3.104 & 2.767 \\ \hline 19 & 17.226 & 15.6 & 14.324 & 13. & 12.085 & & 10.336 & 9.604 & 8.950 & 8.365 & 7.366 & & 5.877 & 5.316 & & 4.097 & 3.539 & 3.109 & 2770 \\ \hline 20 & 18.046 & 516.351 & 14.877 & 13.590 & 12.462 & 11.470 & 10.594 & 9.818 & 9.128 & 8.514 & 7.469 & 6.623 & 5.929 & 5.353 & 4.870 & 4.110 & 3.546 & 3.113 & 2.772 \\ \hline 25 & 22.023 & 19.523 & 17.413 & 15.622 & 14.094 & 12.783 & 11.654 & 10.675 & 9.823 & 9.077 & 7.843 & 6.873 & 6.097 & 5.467 & 4.948 & 4.147 & 3.564 & 3.122 & 2.776 \\ \hline 3 & 2 & 322.937 & 600 & 17.292 & 1 & 765 & 4091 & 258 & 74 & 427 & 8.055 & 7.003 & 6.177 & 5.517 & 4.979 & 4.160 & 3.5 & 3.12 & 77 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{l} Time: \\ Period \\ (e.g. \\ ycas) \end{tabular} & 1% & 286 & 395 & 4% & 5% & 68 & 7% & 8x & 9% & 10% & 12% & 14% & 16% & 20% \\ \hline 1 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 \\ \hline 2 & 2.010 & 2.020 & 2.030 & 2.040 & 2.050 & 2.060 & 2.070 & 2.080 & 2.090 & 2.100 & 2.120 & 2.140 & 2.160 & 2.200 \\ \hline 3 & 3.030 & 3.060 & 3.091 & 3.122 & 3.152 & 3.184 & 3.215 & 3.246 & 3.278 & 3.310 & 3.374 & 3.440 & 3.506 & 3.640 \\ \hline 4 & 4.060 & 4.122 & 4.184 & 4.246 & 4.310 & 4.375 & 4.440 & 4.506 & 4.573 & 4.641 & 4.770 & 4.921 & 5.067 & 5.368 \\ \hline 5 & 5.101 & 5.204 & 5.309 & 5.416 & 5.526 & 5.637 & 5.751 & 5.867 & 5.985 & 6.105 & 6.353 & 6.610 & 6.877 & 7.442 \\ \hline 6 & 6.152 & 6.308 & 6.468 & 6.633 & 6.802 & 6.975 & 7.1 & 7 & 7.5 & 7.7 & 8. & 8.536 & 8.978 & 9.930 \\ \hline 7 & 7.214 & 7.434 & 7.662 & 7.898 & 8.142 & 8.394 & 8.654 & 8.923 & 9.200 & 9.487 & 10.089 & 10.730 & 11.413 & 12.915 \\ \hline 8 & 8.286 & 8.583 & 8.892 & 9.214 & 9.549 & 9.897 & 10.260 & 10.637 & 11.028 & 11.436 & 12.300 & 13.233 & 14.240 & 16.499 \\ \hline 9 & 9.369 & 9.755 & 10.159 & 10,583 & 11.027 & 11.491 & 11.978 & 12.488 & 13.021 & 13.579 & 14.776 & 16.085 & 17.518 & 20.798 \\ \hline 10 & 10.462 & 10.950 & 11.464 & 12.006 & 12.578 & 13.181 & 13.816 & 14.487 & 15.193 & 15.937 & 17.549 & 19.337 & 21,321 & 25.958 \\ \hline 11 & 11.567 & 12.169 & 12.808 & 13.486 & 14.207 & 14.972 & 15.7 & 16. & 17.560 & 18.531 & 20 & 23.044 & 25.732 & 32.150 \\ \hline 12 & 12.683 & 13.412 & 14.192 & 15.026 & 15.917 & 16.870 & 17.888 & 18.977 & 20.141 & 21.384 & 24. & 27.271 & 30.850 & 39.580 \\ \hline 13 & 13.809 & 14.680 & 15.618 & 16.627 & 17.713 & 18. & 20. & & & & & & & 48.496 \\ \hline 14 & 14.947 & 15.974 & 17.086 & 18.292 & 19.599 & 21.051 & 22 & 24 & 26 & 27. & 32 & 37.581 & 43.672 & 59.195 \\ \hline 15 & 16.097 & 17.293 & 18.599 & 20.024 & 21.579 & 23.276 & 25.129 & 27.152 & 29.361 & 31.772 & 37.280 & 43.842 & 51.659 & 72.035 \\ \hline 16 & 17.25 & 18.639 & 20.1 & 2 & 2 & 2 & & & & 35 & & 50 & 60.925 & 87.442 \\ \hline 17 & 18.430 & 20.012 & 21.762 & 23.698 & 25.840 & 28.213 & 30.840 & 33.750 & 36.974 & 40.545 & 48.884 & 59.118 & 71.673 & 105.93 \\ \hline 18 & 19.615 & 21.412 & 23.414 & 25.645 & 28.132 & 30.906 & 33.999 & 37.450 & 41,301 & 45.599 & 55.750 & 68.934 & 84.140 & 128.11 \\ \hline & 20.811 & 22.84 & 25.1 & 27.6 & 30.539 & 33.760 & 37.379 & 41,446 & 46.018 & 51.1 & 63.440 & 78.969 & 98,603 & 154.74 \\ \hline 20 & 22.019 & 24.297 & 26.870 & 29.778 & 33.066 & 36.786 & 40.995 & 45.762 & 51.160 & 57.275 & 72.052 & 91.025 & 115.370 & 186.68 \\ \hline 25 & 28.243 & 32.030 & 36.459 & 41.646 & 47.727 & 54.865 & 63.249 & 73.106 & 84.701 & 98.347 & 133.33 & 181.87 & 249.210 & 471.98 \\ \hline & 34,109 & 56 & 47.575 & 56.085 & 66.439 & 2.058 & 461 & 113.283 & 136.308 & 164.494 & 241,333 & 356.878 & 530.310 & 1181.8 \\ \hline \end{tabular}

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