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Please help me with the answer and explain how you got it. QS 11-14 (Algo) Net present value of an annuity LO P3 Pena Company
Please help me with the answer and explain how you got it.
QS 11-14 (Algo) Net present value of an annuity LO P3 Pena Company is considering an investment of $27.215 that provides net cash flows of $8,400 annually for four years. (a) If Pena Company requires a 8% return on its investments, what is the net present value of this investment? (PV of $1. FV or $1. PVA of S1, and EVA of S (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A Required B What is the net present value of this investment? Cash Flow Select Chart Annual cash flow Present Value of an Annuity of 1 Initial investment Net present value PV Factor Amount $ 8.400 Present Value $ Required 3 > * Teriods 1 SC 59 56 10 10660 25 09508 0.9612 099 TOO 0.9615 09246 1990 0925 08571 75 0.9 0.5731 03163 0.7639 wowo 19 COSO 92150 15160 DM 07513 07150 06 2 3 4 5 6 7 0.51 129 0.3929 1972 0.118 06155 0.5674 0.500 023 0219 0904 0900 OR196 0.7921 9.7473 07050 06651 06274 0903 09706 0.9610 0913 090 09127 0923 0.91 0903 OCIO 09174 0341 07722 0.2014 069 0.16 0540 05019 sono 09233 09057 OSO 01705 06 OS O126 02075 03131 0.36 0227 0.733 0.7462 07107 0678 06 COSCO CHO 06663 06727 06 0535 SHO CICICO 6 1 0.7592 0 03259 0.32 12O ORTO MOTO 08535 DRM COCZO COCO CORSO COSO 61650 0562 HO 6 1 0.4665 004 0355 COCO 06756 0.5584 CROSO 10 0303 076 0741 07234 2016 190 LSO 1506 0330 020 0.267 NO CROSO 0669 SO 0751 0.4024 0.35 0.3335 0 0210 SEO VEICO MO 14 09110 TO CI 03568 05303 OM 11 9000 OSITO OTES 0.77 0157 0.7490 0.7264 OLVO 11990 1 OSTS 0.157 COCO 0:43 1911 1677 010 0315 02 21 CO ISOSO OLIO TOO 046 040 04173 0.1956 0714 03611 0294 06 LIPTO TO SO PELO 13 1 1 1 11611 23 16 ICO 100 LE OS CHLO OGOS HISO 02519 2011 0213 WO 0.14 . 02 52165 0.491 DUSEO DOCTO 044155 033957 D 165 0 000 00 wo SOLO 0.500 05 0477 PO 1 RICO 564 03131 THE POO HD DO TESO . 04120 01110 IE 1600 ON 00 D G 067 OCTO CUO form 11 Table B 2 ture Value of 1 X = (1+1)* Periods 59 65 58 0 56 00001 10000 49 1.0000 10400 10816 1.1249 00901 1 2 3 4 3 1.0000 1.0500 1.1025 1.1576 1 STEET 66911 SSICI 6 1.0000 1.0100 1,0201 10303 10406 1.0510 1.0615 10721 10829 1.0937 1.1046 1.1157 11265 1.1381 195 1.1010 1.1726 1134 7 8 34 1.0000 10300 1.0609 1,0927 1.1255 1.1593 1.1941 12299 1.2666 1.3048 1:34:19 1.3842 14258 14685 15126 24 1.00 1.0200 10004 10612 10824 1.1041 1.1262 11487 11717 1.1951 1.2190 1244 126 12936 1.3195 13459 13723 T.4002 12 LASG 14RS 6 10 1.2167 1.2653 13159 13686 1.4233 1.4802 1.5395 16010 16651 17317 1.8009 1.2763 1.3401 T4071 14775 13513 1.6289 17103 17959 18856 1.9799 2079 2.1129 22930 1.1236 1 1910 1.2625 1.3382 1.4185 15036 1.593% 16895 1.7908 1.NO 2012 2.1329 2.2609 266 25404 2. 1928 Rate 79 10% 125 159 Periods 10000 10000 10000 10000 10000 0 10700 10800 1.0900 1.1000 1.1200 1.1500 1 11449 1.1664 1.1881 12100 1.254 2 1.2250 1.2597 1.2950 1.3310 14049 13108 13605 14116 14641 1.5735 1.7490 14026 14693 15386 16105 1.7021 20114 5 1.5007 1.5569 16771 17716 19736 23131 1.SK 1.7138 1.820 1.04187 23107 26600 1.7182 13500 19926 2.1436 3.0590 1835 19990 21719 21.1579 3.5179 9 19672 2.1589 21674 2.3917 3:05 1436 10 2.1009 23316 2500 2.531 11 22522 23182 28127 1384 3.960 1 2098 27196 10658 3:4525 41615 6.1991 2STAS 2.9372 7975 70257 14 2.7590 31922 6033 4.1772 5.4716 2017 10 1439 1920 61104 1576 3158 37000 43274 10.7011 12 11709 47173 555592 TE 361 4.3157 311412 613 142 10 5604 67225 16 20 3.074 17.000 339 76123 10 17 299 SRE 12 13 COSES 14 CIRCE CE ORSSI 16 10007 OCENI SET VI LI NZSY SPOS 0999 1961 SZOCI 1.7034 1.7335 OLESE 1.0479 20233 2106 2. 1911 2005 IN 19 20 25 10 OSTO 130K 1.2202 190 10256 32071 2010 5.7415 HENCE 2631 33868 4.1219 0199 SH 2.0915 LCON 114 1*114 LEE HTC OF Table B Present Value of an Annuity of 1 pall 1/10 Periods 25 155 51 10660 1 9690 0.9174 1.7591 89 09259 1.7833 25771 3 09709 19135 2.8756 3.7171 45797 Periode 1 2 10 0.9091 17355 2486 1.6757 Rate 75 09146 1.080 26243 3372 41002 4.7655 125 02920 16901 1011 3037 3.601 3 CIES 1 IZICE 6691 + s 0.9804 19616 2819 3.77 47135 5.6014 64720 7255 1623 920 35 0.9524 1.8594 2.7232 35160 13295 50757 3.7861 6.4632 7.1078 7.7217 23550 33522 19704 2.9410 39020 48544 5.7935 6.7282 7.6517 5660 94713 103676 112551 0.9434 1314 267 34651 42134 49173 3.534 6.2008 602 73001 CLIPS 7 CANCS 49 0.9615 3.8861 227751 36299 44518 52421 60021 6.7322 74353 1109 1605 91151 9.9856 NA 11114 11.632 121637 12.0593 6.2103 70197 791 HOP 111 15618 19676 19927 46229 5 2066 57466 62400 6.7101 711 73361 700 1.7908 3155 464 539 3.750 6 16 39712 6.5153 70236 32797 1697 44859 SO 53345 59953 64111 6.032 7160 74 17.00 SIMIT 2 5 9 333 4.7716 SON LOCS COSYS OL 10 11 NOTE ISO 11 PL CO SOT 61944 CE 09556 5400 LELLEL M LESTE 105753 11 12100 1293 6.13 2014 73067 13 EPCE 3.725 LALO 19092 61 7947 1577 22 10/29 944160 7 10091 15 PES 10.6150 11.2001 11.979 125611 11061 117 16 LELSE 9250 122 10.1039 104773 10276 5595 * 1216 WICE ORLO 10.RSTE 11741 5353 138651 1479 155621 16 17 TR0150 VE 14.2919 LA HO CARE OVER TE 15.675 GEELEL 100 20 12402 6793 20 14775 174111 1904 19511 10.50 1165 1200 WIN 106 THE SUE 1700 HACI 19 OLOS OMS 0114 AUS LELE DE 25 OTT 200 NIE CHAPTE CUMISE 1 LUME STICS LOVE TASTE 1056 EM 116516 11 BIG IN 1114 HOLE 1973 TILO Table BA Future Value of an Annuity of f = (1+0"-1 154 Periods 2 59 89 69 DO 00001 00001 Rate 75 10000 2.0700 3.2149 1 10000 00001 10000 Periods 1 3 19 000 20100 30301 49 1.0000 20000 3.1216 4.2465 5.416 2 1 4 5 20500 3.1535 4.3101 5.5256 125 10000 21200 33944 42293 6.13 10901 20900 72751 43731 3984 7523 9.2004 5 21500 4725 4991 6.7434 7537 > 2.0200 30604 41216 5.2000 6.3051 74343 530 9.2546 5.7507 20800 31464 45061 38666 73159 89323 10.6366 12.4676 661 105 10000 2.1000 33100 46410 6.1051 77156 94172 11139 135999 159194 15112 61089 35 10000 20300 30909 41836 53091 6.4664 76625 88923 101591 1469 12071 14.1920 156178 170 LESE 5.1010 6.1520 72135 357 9.3685 101622 7 0600 7.1983 20600 BRO 43746 56971 69753 101 93975 114913 13 INOM 149716 16 690 11 2015 CHICO SHI OILO CI 12/2997 14.7757 6500 10250 1197 13164 15 16.78 6 10.5828 12001 1346 10 10 11 LOT OL LONG CORTE 1102 12577 1306 15 9171 12 7110 SS1991 VISVOS TELIPE 15.1939 17:40 20180 29534 MI EIE 20017 GE 13 714121 SUSI 1971 214953 126825 13 BIOS 201 CONTE 14 OSCLE 14 POUZE 13 16368 12919 2006 21045 15079 172014 ORER 351290 27.121 7. 37533 SI 215786 26575 16.00 35 9197 LON TRUE CORO 450 17 16 17 6.97 33.703 HOUSE SITE Porra 5197 1 75 20012 11412 20 1500 217616 234140 23116 196147 30 100 256154 216712 21.1334 300 33 256725 38319 3057 33.600 56 SU MILY ECO 311 57270 373790 09955 63390 22.8606 PLOE LISU LET CIOCI COS STI OG THE GER SOCI WOLLE WILF POLSCH TOWNICE STO 3630 7) 109 720324 19 20 23 10 0610 20 2127900 COUTE 41.64 233433 364593 SPLE 3413127 164490 21103 IND 11 OLH 1300 THI 11 2016 CE 41 ) 49. 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