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Posted on Sep 10, 2024

Present Value of $1 to Be Received Periodically for n Periods Discount Rate Number of Periods EXHIBIT 26-4 Present Value of a $1 Annuity Receivable

Present Value of $1 to Be Received Periodically for n Periods Discount Rate Number of Periods EXHIBIT 26-4 Present Value of a $1 Annuity Receivable Each Period for n Periods 1 2 3 4 5 6 1% 19% 5% 6% 8% 10% 12% 15% 20% 0.990 0.985 0.952 0.943 0.926 0.909 0.893 0.870 0.833 1.970 1.956 1.859 1.833 1.783 1.736 1.690 1.626 1.528 2.941 2.912 2.723 2.673 2.577 2.487 2.402 2.283 2.106 3.902 3.854 3.546 3.465 3.312 3.170 3.037 2.855 2.589 4.853 4.783 4.329 4.212 3.993 3.791 3.605 3.352 2.991 5.795 5.697 5.076 4.917 4.623 4.355 4.111 3.784 3.326 6.728 6.598 5.786 5.582 5.206 4.868 4.664 4.160 3.605 7.652 7.486 6.463 6.210 5.747 5.335 4.968 4.487 3.837 8.566 8.361 7.108 6.802 6.247 5.759 5.328 4.772 4.031 9.471 9.222 7.722 7.360 6.710 6.145 5.650 5.019 4.192 18.046 17.169 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 8 9 10 20 24 36 Required: a. For each proposal, compute the following. Assume discounted at an annual rate of 12 percent. Use Exhibits 26-3 and 26. necessary (1) Payback period (2) Return on average investment (3) Net present value b. On the basis of your analysis in part a, state which proposal you would recommend. Complete this question by entering your answers in the tabs belo. Required A Required B For each proposal, compute the following. Assume discounted at an annual rate of 12 percent. Use Exhibits 26-3 and 26-4 where necessary. (Enter negative answers with a minus sign. Round your "PV factors" to 3 decimal places, return on average investment to 2 decimal places.) Proposal A Proposal B (1) Payback period 5 years 4 years (2) Return on average investment 20.00% 14.60 % (3) Net present value Required A Required B > Present Value of $1 to Be Received Periodically for n Periods Discount Rate 5% EXH Preset Annuit Perioc 8% 1% 12% 6% 10% 12% 15% 20% 990 0.985 0.952 0.943 0.926 0.909 0.893 0.870 0.833 970 1.956 1.859 1.833 1.783 1.736 1.690 1.626 1.528 941 2.912 2.723 2.673 2.577 2.487 2.402 2.283 2.106 902 3.854 3.546 3.465 3.312 3.170 3.037 2.855 2.589 853 4.783 4.329 4.212 3.993 3.791 3.605 3.352 2.991 .795 5.697 5.076 4.917 4.623 4.355 4.111 3.784 3.326 728 6.598 5.786 5.582 5.206 4.868 4.564 4.160 3.605 .652 7.486 6.463 6.210 5.747 5.335 4.968 4.487 3.837 566 8.361 7.108 6.802 6.247 5.759 5.328 4.772 4.031 471 9.222 7.722 7.360 6.710 6.145 5.650 5.019 4.192 .046 17.169 12.462 11.470 9.818 8.514 7.469 6.259 4.870 243 20.030 13.799 12.550 10.529 8.986 7.784 6.434 4.937 11.717 108 16.547 14.621 9.677 8.192 6.623 4.993 27.661 Present Value of $1 Due in Periods Discount Rate Number of Periods (n) 1 2 1% 191% 5% 6% 8% 10% 4 5 6 7 8 9 10 20 24 36 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 18.046 21.243 30.108 0.985 1.956 2.912 3.854 4.783 5.697 6.598 7.486 8.361 9.222 17.169 20.030 27.661 0.952 1.859 2.723 3.546 4.329 5.076 5.786 6.463 7.108 7.722 12.462 13.799 16,547 0.943 1.833 2.673 3.465 4.212 4.912 5.582 6.210 6.802 7.360 11.470 12.550 14.621 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6,247 6.710 9.818 10.529 11.717 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 8.514 8.985 9.677 12% 0.893 1.690 2.402 3.037 3,605 4.111 4.564 4.968 5.328 5,650 7.469 7,784 8.192 15% 0.870 1.626 2.283 2.855 3.352 3.784 4.160 4.487 4.772 5.019 6.259 6.434 6.623 20% 0.833 1.828 2.106 2.589 2.991 3.326 3.605 3.837 4,031 4.192 4.870 4.937 4.993