Problem 9-7 Adrian Sonnetson, the owner of Adnan Motors, is considering the addition of a paint and body shop to his automobile dealership Construction of a building and the purchase of necessary equipment is estimated to cost s797,000, and both the building and equipment will be depreciated over 10 years using the straight-line method and equipment estimated residual value at the end of 10 years Sonnetson's required rate of retum for this project is 12 percent. Net income related to each year investment follows: $649,000 Revenue 70,800 Material cost 151,000 Labor Depreciation 12,000 Income before taxes 335,500 Taxes at 40% 134,200 $201.300 Net income Table B92 Present value of an annuityofs1pnr period 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 20% 30% 1 o9434 0.9346 o92s9 a9174 o9009 o8929 os8s0 08696 08621 0.8333 o 7692 .8334 18080 1.7833 1.7591 1.7355 1.7125 16901 116467 1.6257 1.6052 15278 1.3609 3 26730 26243 25771 2.5313 2 4869 4437 24018 2.3612 2.3216 22832 2.2459 2.1065 1 8161 4 3A651 3.3872 3.3121 3.2397 31699 2 2.7982 2,5887 2.1 66 3.1024 30 373 2.9745 291 37 28sso 3 2743 29906 2 4356 5 4.2124 4.1002 3.9927 38897 3.7908 36959 3.6048 351 72 3 43 3, 3522 3684 255 264 27 6 49173 47665 46229 44859 43553 4230s 411 14 3.99 75 3.8887 3. 7845 40386 36046 2 7 5.5824 5.3893 52064 5.0330 48684 4,7122 45638 4.4226 42883 4.1604 4.3436 3,8372 2.9247 8 6.2098 59713 5.7466 5.5348 5.3 349 5.1461 49676 4.7988 46389 4.4873 46065. 40310 30190 9 68017. 6.5152 62469 5.9952, 5.TS90 55320. 5.3282. 5.1317. 49464 4 zz16 Show