Present value of annunity

(n) Periods	2%	2.5%	3%	4%	5%	6%	8%	9%	10%	11%	12%	15%
1	0.98039	0.97561	0.97087	0.96154	0.95238	0.94340	0.92593	0.91743	0.90909	0.90090	0.89286	0.86957
2	1.94156	1.92742	1.91347	1.88609	1.85941	1.83339	1.78326	1.75911	1.73554	1.71252	1.69005	1.62571
3	2.88388	2.85602	2.82861	2.77509	2.72325	2.67301	2.57710	2.53129	2.48685	2.44371	2.40183	2.28323
4	3.80773	3.76197	3.71710	3.62990	3.54595	3.46511	3.31213	3.23972	3.16986	3.10245	3.03735	2.85498
5	4.71346	4.64583	4.57971	4.45182	4.32948	4.21236	3.99271	3.88965	3.79079	3.69590	3.60478	3.35216
6	5.60143	5.50813	5.41719	5.24214	5.07569	4.91732	4.62288	4.48592	4.35526	4.23054	4.11141	3.78448
7	6.47199	6.34939	6.23028	6.00205	5.78637	5.58238	5.20637	5.03295	4.86842	4.71220	4.56376	4.16042
8	7.32548	7.17014	7.01969	6.73274	6.46321	6.20979	5.74664	5.53482	5.33493	5.14612	4.96764	4.48732
9	8.16224	7.97087	7.78611	7.43533	7.10782	6.80169	6.24689	5.99525	5.75902	5.53705	5.32825	4.77158
10	8.98259	8.75206	8.53020	8.11090	7.72173	7.36009	6.71008	6.41766	6.14457	5.88923	5.65022	5.01877
11	9.78685	9.51421	9.25262	8.76048	8.30641	7.88687	7.13896	6.80519	6.49506	6.20652	5.93770	5.23371
12	10.57534	10.25776	9.95400	9.38507	8.86325	8.38384	7.53608	7.16073	6.81369	6.49236	6.19437	5.42062
13	11.34837	10.98319	10.63496	9.98565	9.39357	8.85268	7.90378	7.48690	7.10336	6.74987	6.42355	5.58315
14	12.10625	11.69091	11.29607	10.56312	9.89864	9.29498	8.24424	7.78615	7.36669	6.98187	6.62817	5.72448
15	12.84926	12.38138	11.93794	11.11839	10.37966	9.71225	8.55948	8.06069	7.60608	7.19087	6.81086	5.84737
16	13.57771	13.05500	12.56110	11.65230	10.83777	10.10590	8.85137	8.31256	7.82371	7.37916	6.97399	5.95423
17	14.29187	13.71220	13.16612	12.16567	11.27407	10.47726	9.12164	8.54363	8.02155	7.54879	7.11963	6.04716
18	14.99203	14.35336	13.75351	12.65930	11.68959	10.82760	9.37189	8.75563	8.20141	7.70162	7.24967	6.12797
19	15.67846	14.97889	14.32380	13.13394	12.08532	11.15812	9.60360	8.95012	8.36492	7.83929	7.36578	6.19823

(Present Value of a Single Sum)

(n) Periods	2%	2.5%	3%	4%	5%	6%	8%	9%	10%	11%	12%	15%
1	0.98039	0.97561	0.97087	0.96154	0.95238	0.94340	0.92593	0.91743	0.90909	0.90090	0.89286	0.86957
2	0.96117	0.95181	0.94260	0.92456	0.90703	0.89000	0.85734	0.84168	0.82645	0.81162	0.79719	0.75614
3	0.94232	0.92860	0.91514	0.88900	0.86384	0.83962	0.79383	0.77218	0.75132	0.73119	0.71178	0.65752
4	0.92385	0.90595	0.88849	0.85480	0.82270	0.79209	0.73503	0.70843	0.68301	0.65873	0.63552	0.57175
5	0.90573	0.88385	0.86261	0.82193	0.78353	0.74726	0.68058	0.64993	0.62092	0.59345	0.56743	0.49719
6	0.88797	0.86230	0.83748	0.79031	0.74622	0.70496	0.63017	0.59627	0.56447	0.53464	0.50663	0.43233
7	0.87056	0.84127	0.81309	0.75992	0.71068	0.66506	0.58349	0.54703	0.51316	0.48166	0.45235	0.37594
8	0.85349	0.82075	0.78941	0.73069	0.67684	0.62741	0.54027	0.50187	0.46651	0.43393	0.40388	0.32690
9	0.83676	0.80073	0.76642	0.70259	0.64461	0.59190	0.50025	0.46043	0.42410	0.39092	0.36061	0.28426
10	0.82035	0.78120	0.74409	0.67556	0.61391	0.55839	0.46319	0.42241	0.38554	0.35218	0.32197	0.24718
11	0.80426	0.76214	0.72242	0.64958	0.58468	0.52679	0.42888	0.38753	0.35049	0.31728	0.28748	0.21494
12	0.78849	0.74356	0.70138	0.62460	0.55684	0.49697	0.39711	0.35554	0.31863	0.28584	0.25668	0.18691
13	0.77303	0.72542	0.68095	0.60057	0.53032	0.46884	0.36770	0.32618	0.28966	0.25751	0.22917	0.16253
14	0.75788	0.70773	0.66112	0.57748	0.50507	0.44230	0.34046	0.29925	0.26333	0.23199	0.20462	0.14133

Metlock Auto Care is considering the purchase of a new tow truck. The garage currently has no tow truck, and the $60,010 price tag for a new truck would be a major expenditure for it. Barbara Brown, owner of the garage, has compiled the following estimates in trying to determine whether she should purchase the tow truck: Barbara's good friend, Michael Davis, stopped by. He is trying to convince Barbara that the tow truck will have other benefits that Barbara has not even considered. First, he says, cars that need towing need to be fixed. Thus, when Barbara tows them to her facility, her repair revenues will increase. Second, he notes that the tow truck could have a plow mounted on it, thus saving Barbara the cost of plowing her parking lot. (Michael will give her a used plow blade for free if Barbara will plow Michael's driveway.) Third, he notes that the truck will generate goodwill; that is, people who are rescued by Barbara and her tow truck will feel grateful and might be more inclined to use her service station in the future or buy gas there. Fourth, the tow truck will have "Metlock Auto Care" on its doors, hood, and back tailgate-a form of free advertising wherever the tow truck goes. Michael estimates that, at a minimum, these benefits would be worth the following: Click here to view the factor table. (a) Calculate the net present value, ignoring the additional benefits described by Michael. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.)