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Please help. I mainly need help with 2 & 3. Thank you. For discount factors use Exhibit 12B-1 and Exhibit 12B-2. estimated at $2,430,000. The
Please help. I mainly need help with 2 & 3. Thank you.
For discount factors use Exhibit 12B-1 and Exhibit 12B-2. estimated at $2,430,000. The required rate of return is 8%. Required: 1. Prepare a schedule of the projected annual cash flows. 2. Calculate the NPV using only discount factors from Exhibit 12B.1 $ 3. Calculate the NPV using discount factors from both Exhibits 12B.1 and 12B.2 $ Exhibit 12B.1 Present Value of a Single Amount* \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hlinen/i & 1% & 2% & 3% & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 12% & 14% & 16% & 18% & 20% & 25% & 30% \\ \hline 1 & 10 & 0.98039 & 0. & 54 & 0.9 & 0.94340 & 0.93458 & 593 & 743 & 909 & 9286 & 0.87719 & 0.86207 & 0.84746 & 333 & 0.80000 & 6923 \\ \hline 2 & 0.98030 & 0.96117 & 0.94260 & 0.92456 & 0.90703 & 0.89000 & 0.87344 & 0.85734 & 0.84168 & 0.82645 & 0.79719 & 0.76947 & 0.74316 & 0.71818 & 0.69444 & 0.64000 & 0.59172 \\ \hline 3 & 0.97059 & 0.94232 & 0.91514 & 0.88900 & 0.86384 & 0.83962 & 0.81630 & 0.79383 & 0.77218 & 0.75131 & 0.71178 & 0.67497 & 0.64066 & 0.60863 & 0.57870 & 0.51200 & 0.45517 \\ \hline 4 & 0.96098 & 0.92385 & 0.88849 & 0.85480 & 0.82270 & 0.79209 & 0.76290 & 0.73503 & 0.70843 & 0.68301 & 0.63552 & 0.59208 & 0.55229 & 0.51579 & 0.48225 & 0.40960 & 0.35013 \\ \hline 5 & 0.95147 & 0.90573 & 0.86261 & 0.82193 & 0.78353 & 0.74726 & 0.71299 & 0.68058 & 0.64993 & 0.62092 & 0.56743 & 0.51937 & 0.47611 & 0.43711 & 0.40188 & 0.32768 & 0.26933 \\ \hline 6 & 0.94205 & 0.88797 & 0.83748 & 0.79031 & 0.74622 & 0.70496 & 0.66634 & 0.63017 & 0.59627 & 0.56447 & 0.50663 & 0.45559 & 0.41044 & 0.37043 & 0.33490 & 0.26214 & 0.20718 \\ \hline 7 & 0.93272 & 0.87056 & 0.81309 & 0.75992 & 0.71068 & 0.66506 & 0.62275 & 0.58349 & 0.54703 & 0.51316 & 0.45235 & 0.39964 & 0.35383 & 0.31393 & 0.27908 & 0.20972 & 0.15937 \\ \hline 8 & 0.92348 & 0.85349 & 0.78941 & 0.73069 & 0.67684 & 0.62741 & 0.58201 & 0.54027 & 0.50187 & 0.46651 & 0.40388 & 0.35056 & 0.30503 & 0.26604 & 0.23257 & 0.16777 & 0.12259 \\ \hline 9 & 0.91434 & 0.83676 & 0.76642 & 0.70259 & 0.64461 & 0.59190 & 0.54393 & 0.50025 & 0.46043 & 0.42410 & 0.36061 & 0.30751 & 0.26295 & 0.22546 & 0.19381 & 0.13422 & 0.09430 \\ \hline 10 & 0.90529 & 0.82035 & 0.74409 & 0.67556 & 0.61391 & 0.55839 & 0.50835 & 0.46319 & 0.42241 & 0.38554 & 0.32197 & 0.26974 & 0.22668 & 0.19106 & 0.16151 & 0.10737 & 0.07254 \\ \hline 11 & 0.89632 & 0.80426 & 0.72242 & 0.64958 & 0.58468 & 0.52679 & 0.47509 & 0.42888 & 0.38753 & 0.35049 & 0.28748 & 0.23662 & 0.19542 & 0.16192 & 0.13459 & 0.08590 & 0.05580 \\ \hline 12 & 0.88745 & 0.78849 & 0.70138 & 0.62460 & 0.55684 & 0.49697 & 0.44401 & 0.39711 & 0.35553 & 0.31863 & 0.25668 & 0.20756 & 0.16846 & 0.13722 & 0.11216 & 0.06872 & 0.04292 \\ \hline 13 & 0.87866 & 0.77303 & 0.68095 & 0.60057 & 0.53032 & 0.46884 & 0.41496 & 0.36770 & 0.32618 & 0.28966 & 0.22917 & 0.18207 & 0.14523 & 0.11629 & 0.09346 & 0.05498 & 0.03302 \\ \hline 14 & 0.86996 & 0.75788 & 0.66112 & 0.57748 & 0.50507 & 0.44230 & 0.38782 & 0.34046 & 0.29925 & 0.26333 & 0.20462 & 0.15971 & 0.12520 & 0.09855 & 0.07789 & 0.04398 & 0.02540 \\ \hline 15 & 0.86135 & 0.74301 & 0.64186 & 0.55526 & 0.48102 & 0.41727 & 0.36245 & 0.31524 & 0.27454 & 0.23939 & 0.18270 & 0.14010 & 0.10793 & 0.08352 & 0.06491 & 0.03518 & 0.01954 \\ \hline 16 & 0.85282 & 0.72845 & 0.62317 & 0.53391 & 0.45811 & 0.39365 & 0.33873 & 0.29189 & 0.25187 & 0.21763 & 0.16312 & 0.12289 & 0.09304 & 0.07078 & 0.05409 & 0.02815 & 0.01503 \\ \hline 17 & 0.84438 & 0.71416 & 0.60502 & 0.51337 & 0.43630 & 0.37136 & 0.31657 & 0.27027 & 0.23107 & 0.19784 & 0.14564 & 0.10780 & 0.08021 & 0.05998 & 0.04507 & 0.02252 & 0.0 \\ \hline 18 & 0.83602 & 0.70016 & 0.58739 & 0.49363 & 0.41552 & 0.35034 & 0.29586 & 0.25025 & 0.21199 & 0.17986 & 0.13004 & 0.09456 & 0.06914 & 0.05083 & 0.03756 & 0.01801 & 0.00889 \\ \hline 19 & 0.82774 & 0.68643 & 0.57029 & 0.47464 & 0.39573 & 0.33051 & 0.27651 & 0.23171 & 0.19449 & 0.16351 & 0.11611 & 0.08295 & 0.05139 & 0.04308 & 0.03130 & 0.01441 & 0.00684 \\ \hline 20 & 0.81954 & 0.67297 & 0.55368 & 0.45639 & 0.37689 & 0.31180 & 0.25842 & 0.21455 & 0.17843 & 0.14864 & 0.10367 & 0.07276 & 0.05139 & 0.03651 & 0.02608 & 0.01153 & 0.00526 \\ \hline 21 & 0.81143 & 0.65978 & 0.53755 & 0.43883 & 0.35894 & 0.29416 & 0.24151 & 0.19866 & 0.16370 & 0.13513 & 0.09256 & 0.06383 & 0.04430 & 0.03094 & 0.02174 & 0.00922 & 0.00405 \\ \hline 22 & 0.80340 & 0.64684 & 0.52189 & 0.42196 & 0.34185 & 0.27751 & 0.22571 & 0.18394 & 0.15018 & 0.12285 & 0.08264 & 0.05599 & 0.03819 & 0.02622 & 0.01811 & 0.00738 & 0.00311 \\ \hline 23 & 0.79544 & 0.63416 & 0.50669 & 0.40573 & 0.32557 & 0.26180 & 0.21095 & 0.17032 & 0.13778 & 0.11168 & 0.07379 & 0.04911 & 0.03292 & 0.02222 & 0.01509 & 0.00590 & 0.00239 \\ \hline 24 & 0.78757 & 0.62172 & 0.49193 & 0.39012 & 0.31007 & 0.24698 & 0.19715 & 0.15770 & 0.12640 & 0.10153 & 0.06588 & 0.04308 & 0.02838 & 0.01883 & 0.01258 & 0.00472 & 0.00184 \\ \hline 25 & 0.77977 & 0.60953 & 0.47761 & 0.37512 & 0.29530 & 0.23300 & 0.18425 & 0.14602 & 0.11597 & 0.09230 & 0.05882 & 0.03779 & 0.02447 & 0.01596 & 0.01048 & 0.00378 & 0.00142 \\ \hline 26 & 0.77205 & 0.59758 & 0.46369 & 0.36069 & 0.28124 & 0.21981 & 0.17220 & 0.13520 & 0.10639 & 0.08391 & 0.05252 & 0.03315 & 0.02109 & 0.01352 & 0.00874 & 0.00302 & 0.00109 \\ \hline 27 & 0.76440 & 0.58586 & 0.45019 & 0.34682 & 0.26785 & 0.20737 & 0.16093 & 0.12519 & 0.09761 & 0.07628 & 0.04689 & 0.02908 & 0.01818 & 0.01146 & 0.00728 & 0.00242 & 0.00084 \\ \hline 28 & 0.75684 & 0.57437 & 0.43708 & 0.33348 & 0.25509 & 0.19563 & 0.15040 & 0.11591 & 0.08955 & 0.06934 & 0.04187 & 0.02551 & 0.01567 & 0.00971 & 0.00607 & 0.00193 & \\ \hline 29 & 0.7 & 11 & 0.42435 & 0.32065 & 0.24295 & 0.18456 & 0.14 & 0. & 0.08 & 0.06304 & 0.03738 & 0.02237 & 0.01351 & 0.00823 & 0.00506 & 0.00155 & 0.0 \\ \hline 30 & 0.74192 & 0.55207 & 0.41199 & 0.30832 & 0.23138 & 0.17411 & 0.13137 & 0.09938 & 0.07537 & 0.05731 & 0.03338 & 0.01963 & 0.01165 & 0.00697 & 0.00421 & 0.00124 & 0.00038 \\ \hline \end{tabular} Exhibit 12B.2 Present Value of an Annuity*Step by Step Solution
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