Present Value of $1.00 Present Value of an Annuity of $1.00 5 % 8% 10% 11% 12% 2 Period 3 % 4% 6 % 7 % 9 % Period 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 1 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 | 1 0.971 | 0.962 |0.952 | 0.943 | 0.935 0.926 | 0.917 || 0.909 | 0.901 | 0.893 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 2 1.913 | 1.886 | 1.859 | 1.833 | 1.808 | 1.783 | 1.759 | 1.736 1.713 | 1.690 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 2.829 | 2.775 2.723 2.673 2.624 2.577 2.531 | 2.487 2.444 2.402 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 4 | 3.717 || 3.630 | 3.546 3.465 | 3.387 || 3.312 | 3.240 | 3.170 || 3.102 || 3.037 5 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 4.580 4.452 4.329 | 4.212 4.100 3.993 3.890 3.791 | 3.696 3.605 0.837 | 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 7 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 | 0.452 7. 6.230 || 6.002 | 5.786 || 5.582 | 5.389 || 5.206 | 5.033 | 4.868 | 4.712 | 4.564 8 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 8 | 7.020 || 6.733 | 6.463 | 6.210 | 5.971 || 5.747 || 5.535 || 5.335 | 5.146 | 4.968 X Company has an opportunity to accept a special order that will result in immediate profit of $71,000. After doing some market research that cost $5,000, the marketing manager believes that if X Company accepts the order, the company will lose regular customers. Specifically, she believes the effect will be lost profits of $8,000 in each of the next 4 years. 10.141 | 0.713 | 0.681 0.650 0.621 0.593 | 0 Assuming a discount rate of 8%, what is the net present value of accepting the special order? [Note: Use the Present Value tables in the Coursepack.] Submit