Present value of $1

Periods4%6%8%10%12%14%10.9620.9430.9260.9090.8930.87720.9250.8900.8570.8260.7970.76930.8890.8400.7940.7510.7120.67540.8550.7920.7350.6830.6360.59250.8220.7470.6810.6210.5670.51960.7900.7050.6300.5640.5070.45670.7600.6650.5830.5130.4520.40080.7310.6270.5400.4670.4040.35190.7030.5920.5000.4240.3610.308100.6760.5580.4630.3860.3220.270

Present value of an Annuity of $1

Periods4%6%8%10%12%14%10.9620.9430.9260.9090.8930.87721.8861.8331.7831.7361.6901.64732.7752.6732.5772.4872.4022.32243.6303.4653.3123.1703.0372.91454.4524.2123.9933.7913.6053.43365.2424.9174.6234.3554.1113.88976.0025.5825.2064.8684.5644.28886.7336.2105.7475.3354.9684.63997.4356.8026.2475.7595.3284.946108.1117.3606.7106.1455.6505.216

Geary Company is considering an investment costing $112,600. The investment would return $42,300 per year in each of three years. Geary requires a minimum rate of return of 10%.

Note: Round PV amounts to nearest whole dollar. If required, use the minus sign to indicate a negative net present value.

A. What is the payback period for the investment? ----Round your answer to four decimal places.

B. Calculate the net present value of the investment.$----

C. The internal rate of return falls between what percentages? The internal rate of return for this discount factor lies between ------ of and ----------- %.

D. Now assume that the investment includes equipment that can be sold at the end of the third year for $14,700. What is the present value of this investment? -------$