Present Value of $1 Due in n Periods Number of Discount Rate Periods (n) 1% 11% 5% 6% 8% 10% 12% 15% 20% -234567112228 990 985 .952 .943 .926 ,909 893 .870 .833 .980 .971 .907 .890 .857 .826 .797 .756 .694 971 956 864 840 *94 .751 712 .658 .579 .961 .942 823 .792 .735 .683 .636 572 .482 951 .928 .784 .747 .681 .621 567 .497 .402 .942 .915 .746 .705 .630 .564 507 432 .335 .933 .901 .711 .665 .583 .513 452 376 .279 .923 .888 .677 .627 .540 .467 404 327 233 9 914 .875 .645 .592 .500 424 361 .284 .194 10 .905 .862 614 558 463 386 322 .247 .162 20 820 .742 .377 312 215 .149 .104 .061 .026 .788 .700 310 247 158 .102 .066 .035 .013 699 .585 .173 .1231 .0631 .032 017 .007 .001 "The present value of $1 is computed by the formula p-11+ on, where p is the present value of $1,/is the discount rate, and n is the number of periods until the future cash flow will occur. Amounts in this table have been rounded to three decimal places and are shown for a limited number of periods and discount rates. Many calculators are programmed to use this formula and can compute present values when the future amount is entered EXHIBIT 26-3 Present Value of $1 Payable in n Periods Present Value of $1 to Be Received Periodically for n Periods EXHIBIT 26-4 Present Value of a $1 Annuity Receivable Each Period for n Number of Discount Rate Periods 1% 11% (n) 5% 6% 8% 10% 12% 15% 20% Periods 1 0.990 0.985 0.952 2 1.970 1.956 3 2.941 2.912 4 3.902 3.854 5 4.853 4.783 0.943 1.859 1.833 2.723 2.673 3.546 3.465 4.329 0.926 0.909 0.893 0.870 0.833 1.783 1.736 1.690 1.626 1.528 2.577 2.487 2.402 2.283 2.106 3.312 3.170 3.037 2.855 2.589 4.212 3.993 3.791 3.605 3.352 2.991 6 5.795 5.697 5.076 4.917 4.623 4.355 4.111 3.784 3.326 7 6.728 6.598 5.786 5.582 5.206 4.868 4.564 4.160 3.605 8 7.652 7.486 6.463 6.210 9 8.566 8.361 7.108 2228 10 9.471 9.222 20 18.0461 17.169 24 36 5.747 5.335 4.968 4.487 6.802 6.247 5.759 5.328 4.772 4.031 7.722 7.360 6.710 6.145 5.650 5.019 4.192 12.462 11.470 9.818 8.514 7.469 6.259 4.870 21.243 20.030 13.799 12.550 10.529 8.985 7.784 6.434 4.937 30.108 27.661 16.547 14.621 11.717 9.677 8.192 6.623 4.993 3.837 Hawkins Poultry Farms is considering the purchase of feeding equipment that costs $139,000 and will produce annual cash flows of approximately $36,000 for five years. The equipment is expected to be sold at the end of five years for $40,000. What is the net present value of the proposed investment? Hawkins requires a 15 percent return on all capital investments using the present value tables in Exhibits 26-3 and 26-4 (Round your "PV factors" to 3 decimal places.) Net present value