pts E21-26 (similar to) Question Help New Evolution Corporation is a rapidly growing biotech company that has a required rate of return of 10%. It plans to build a new facility in Santa Clara County, The bolding we take 2 years to come The building contractor offered New Evolution a choice of three payment plans, as follows: Click the con to wwwth ) Present Present Value of AutoSatin uw of 1 table Butuce ... Acculty of 5.1 table Read the requirements Requirement using the net present value method, calculate the comparative cost of each of the three payment plans being considered by New Evolution wund your final as to the wide dotat The present value cost of Plants * More Info . Plan : Payment of $200,000 at the time of signing the contract and $4,575,000 upon completion of the building. The end of the second year is the completion date. Plan II: Payment of $1,675,000 at the time of signing the contract and $1,675,000 at the end of each of the 2 succeeding years. Plan III: Payment of $325,000 at the time of signing the contract and $1,525,000 at the end of each of the 3 succeeding years. Print Done i Requirements 1. 2. 3. Using the net present value method, calculate the comparative cost of each of the three payment plans being considered by New Evolution. Which payment plan should New Evolution choose? Explain. Discuss the financial factors, other than the cost of the plan, and the nonfinancial factors that should be considered in selecting an appropriate payment plan. Print Done Present Value of $1 Periods 2% 4% 6% 8% 10% Period 1 0.980 0.962 0.943 0.926 0.909 Period 2 0.961 0.925 0.890 0.857 0,826 Period 3 0.942 0.889 0.840 0.794 0.751 Period 4 0.924 0,855 0.792 0.735 0,683 Period 5 0.906 0.822 0.747 0.681 0.621 Period 6 0 BBB 0.790 0.705 0.630 0.564 Period 70.371 0.760 0.665 0.583 0.513 Period 8 0.853 0.731 0.627 0.540 0.467 Period 90.837 0.703 0.592 0.500 0.424 Period 10 0.820 0,670 0.556 0.463 0.386 Period 11 0.804 0650 0.527 0.429 0.350 Period 12 0.788 0.625 0.497 0.397 0,319 Period 13 0.773 0.601 0.469 0.368 0.290 Period 14 0.758 0.577 0.442 0.340 0.263 Period 15 0.743 0.555 0.417 0.315 0.239 Period 16 0.728 0.534 0.394 0292 0.218 Period 17 0.714 0.513 0.371 0.270 0.198 Period 18 0.700 0.494 0.350 0.250 0.180 Period 19 0.686 0.475 0.331 0.232 0.184 Period 20 0,673 0.456 0.312 0215 0.149 Period 21 0.860 0.439 0.294 0.199 0.135 Period 22 0.647 0.422 0.278 08184 0.123 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 40% Periods 0.893 0.877 0.862 0.847 0.833 0.820 0.806 0.794 0.781 0.709 0.758 0.714 Period 1 0.797 0.769 0.743 0.718 0.694 0,672 0.650 0.630 0.610 0592 0.574 0.510 Period 2 0.712 0.675 0.641 0.609 0.579 0.551 0.524 0.500 0.477 0.455 0.435 0.364 Period 3 0.636 0.592 0.552 0.516 0.482 0.451 0.423 0.397 0.373 0.350 0.329 0.200 Period 4 0.567 0.519 0.476 0.437 0.402 0.370 0.341 0.315 0.295 0.269 0.250 0.186 Periods 0.507 0.456 0.410 0.370 0.335 0.303 0.275 0.250 0.227 0207 0.189 0.133 Period 6 0.452 0.400 0.354 0.314 0.279 0.249 0.222 0.198 0.178 0.159 0.143 0,095 Period 7 0.404 0.351 0.305 0.266 0.233 0.204 0.179 0.157 0.139 0.123 0.108 0,068 Period 8 0.361 0.308 0.263 0.225 0.194 0.167 0.144 0.125 0.108 0.094 0.082 0.048 Period 9 0.322 0.270 0.227 0.191 0.162 0.137 0.116 0.099 0.085 0.073 0,062 0.035 Period 10 0287 0237 0.195 0.162 0.135 0.112 0.094 0.079 0.000 0.056 0.047 0.025 Period 11 0.257 0208 0.168 0.137 0.112 0.092 0.078 0.062 0.052 0.043 0.036 0.018 Period 12 0.229 0.182 0.145 0.116 0.093 0.075 0.081 0.050 0.040 0.033 0.027 0.013 Period 13 0.205 0.160 0.125 0.099 0.078 0.062 0.049 0.039 0.032 0.025 0021 0.009 Period 14 0.183 0.140 0.108 0.084 0.005 0.051 0.040 0.031 0.025 0.020 0.016 0.006 Period 15 0.163 0.123 0.093 0.071 0 054 0.042 0.032 0.025 0.019 0.015 0.012 0.005 Period 16 0.140 0.108 0.080 0.000 0.045 0.034 0.026 0.020 0.015 0.012 0.009 0.003 Period 17 0.130 0.095 0.069 0.051 0.038 0.020 0.021 0,016 0.012 0.009 0.007 0.002 Period 18 0.116 0.083 0.060 0.043 0.031 0.023 0.017 0.012 0.009 0.007 0.005 0.002 Period 19 0.104 0.073 0.051 0.037 0026 0.019 0014 0.010 0.007 0.005 0.004 0.001 Period 20 0.093 0.034 0.044 0.031 0.022 0.015 0.011 0.008 0.006 0.004 0.003 0.001 Period 21 0.083 0,056 0.038 0.026 0.018 0.013 0.009 0.006 0.004 0.003 0.002 0.001 Period 22 12% 0.893 1690 2.402 3,037 3.605 Present Value of Annuity of $1.00 in Arrears Periods 2% 4% 6% B% 10% Period 1 0.980 0.962 0.943 0.926 0.900 Period 2 1.942 1.888 1.833 1.783 1.736 Perlod 3 2.884 2.775 2.673 2,577 2487 Period 4 3,808 3.630 3.465 3 312 3.170 Period 5 4.713 4.452 4.212 3.993 3.791 Period 65.601 5.242 4.917 4623 4355 Period 7 0.472 6.002 5.582 5.200 4.868 Period 8 7325 8.733 6.210 5.747 5.335 Period 98.162 7435 6.802 6.247 5.750 Period 10 8.983 8.111 7.360 0710 6.145 Period 11 9.787 8.760 7.887 7.139 6.495 Period 12 10 575 9 385 8.384 7.536 6,814 Period 13 11.343 9.988 8.853 7.904 7.103 Period 14 12 106 10.563 9295 8.244 7.367 Period 15 12.849 11.118 9.712 8.559 7.606 Period 16 13.578 11.652 10.106 3.851 7.824 Period 17 14.232 12.106 10.477 9.122 8.022 Period 18 14.992 12.659 10.828 9,372 8.201 Period 19 15.678 13.134 11.158 9604 8.305 Period 20 16.351 13.590 11.470 9,818 8.514 Period 21 17.011 14.029 11.764 10.017 8 649 Period 22 17 658 14.451 12.042 10 201 8.772 4.504 4.968 5.328 5,650 5938 6.194 6.424 8.628 6.811 6.974 7.120 7.250 7.366 7.469 7.562 7.645 14% 0.877 1.647 2322 2914 3.433 3.889 4.288 4.630 4.946 5.216 5.453 5.600 5.842 6 002 8.142 3.265 6.373 6.467 6.550 6.623 6.687 6.743 16% 18% 20% 0.862 0.847 0.833 1.605 1.566 1.528 2.246 2.174 2.100 2.798 2.690 2589 3.274 3. 127 2.991 3.685 3.490 3326 4039 3.812 3.605 4.344 4,078 3837 4.607 4,303 4.031 4.833 4494 4.192 5.029 4.656 4.327 5,197 4.793 4,439 5.342 4.910 4.533 5.468 5008 4,611 5.575 5.092 4.675 5.668 5.162 4.730 5749 5222 4.775 5 818 5 273 4812 5.877 5.316 4.843 6.929 5353 4.870 5.973 4.891 6011 5.410 4.909 22% 24% 26% 28% 30% 329 40% Periods 0.820 0.806 0.794 0.781 769 0.758 0714 Period 1 1.492 1457 1424 1 392 1.361 1 331 1.224 Period 2 2042 1.981 1.923 1.868 1.810 1.766 1.589 Period 3 2494 2404 2320 2241 2.166 2096 1.849 Period 4 2.864 2.745 2635 2.532 2436 2.345 2.035 Period 5 3.167 3,020 2.885 2.759 2643 2.534 2.168 Period 3.416 3.242 3.083 2937 2.802 2677 2 263 Period 7 3.610 3.421 3.241 3.070 2.925 2.788 2331 Period 3.780 3.566 3.366 3.184 3010 2.868 2.370 Period 9 3923 3.682 3.465 3.200 3.002 2930 2414 Period 10 4.036 3.776 3.543 3335 3.147 2.978 2.438 Period 11 4.127 3.851 3.606 3.387 3.190 3.013 2.456 Period 12 4203 3.912 3.650 3427 3.223 3.040 2.469 Period 13 4.285 3.962 3.695 3.450 3.249 3.001 2478 Period 14 4 315 4.001 3.726 3.483 3268 3.076 2.484 Period 15 4.357 4033 3.751 3.503 3283 3.088 2.489 Period 16 4391 4050 3.775 3.518 3.295 3.097 2492 Period 17 4.419 4,080 3.786 3.529 3.304 3.104 2494 Period 18 4.442 4.097 3.799 3539 3311 3.109 2496 Period 19 4.460 4.110 3.808 3,546 3316 3.113 2.497 Period 20 4.121 3.810 3.551 3.320 3.116 2.498 Period 21 4.488 4130 3.822 3.556 3323 3.118 2498 Period 22 4476 Print Done nt 24% 1.240 1.538 Compound Amount of $1.00 (The Future Value of $1.00) Periods 2% 4% 6% 8% 10% 12% 14% Period 1 1.020 1.040 1.060 1.080 1.100 1.120 1.140 Period 2 1040 1.082 1.124 1.166 1.210 1.254 1.300 Period 3 1.061 1.125 1.191 1.280 1.331 1405 1482 Period 4 1.052 1.170 1.262 1.360 1.464 1.574 1 689 Period 5 1.104 1217 1 338 1.469 1.611 1.762 1.925 Period 6 1.126 1265 1419 1.587 1.772 1974 2.195 Period 7 1.149 1.316 1.504 1.714 1.949 2.211 2.502 Period 8 1.172 1.369 1.594 1.851 2.144 2.476 2.853 Period 9 1.195 1423 1.689 1999 2.358 2.773 3252 Period 101219 1.480 1.791 2.150 2 594 3.100 3.707 Period 11 1 243 1.539 1.898 2 332 2.853 3.479 4.226 Period 12 1.208 1.601 2012 2.518 3.138 4 818 Period 131 294 1.865 2.133 2.720 3.452 4363 5 492 Period 14 1.319 1.732 2.265 2.937 3.797 4.387 6.261 Period 15 1 346 1.301 2.397 3.172 4.177 5.474 7 138 Period 16 1 373 1873 2.540 3.426 4595 6.130 8.137 Period 17 1.400 1.948 2693 3.700 5.054 6.866 9.276 Period 18 1.428 2020 2.854 3.996 5.560 7600 10.575 Period 19 1.457 2.107 3.026 4.316 6.116 8.613 12.056 Period 20 1.486 2.191 3.207 4.381 6.727 9.646 13 743 Period 21 1.516 2279 3,400 5.034 7.400 10.804 15 668 Period 22 1.546 2.370 3606 5.437 8 140 12.100 17.861 16% 18% 1.160 1.180 1.346 1.392 1.561 1.643 1.811 1.939 2.100 2.288 2.436 2.700 2.826 3.185 3.278 3.759 3.803 4.435 4.411 5234 5.117 6.176 5.936 7.288 6.886 8.590 7.988 10.147 9.266 11.974 10.748 14.129 12.468 16.672 14.463 19.673 16.777 23 214 19.461 27 393 22 574 32 324 26. 180 38.142 20% 1.200 1.440 1.728 2074 2.488 2986 3.583 4.300 5.160 6.192 7430 8.916 10.699 12.839 15407 19.488 22.186 26.623 31.948 38 338 46.005 55 206 22% 1.220 1.488 1816 2.215 2.703 3.297 4,023 4.908 5.987 7305 8.912 10.872 13.264 16.182 19.742 24.036 29.384 35.849 43.736 53.358 65 090 79.418 26% 28% 1.260 1.280 1.588 1.638 2.000 2.097 2520 2.684 3.176 3.436 4002 4.398 5,042 5.629 6.353 7206 8.005 9.223 10.086 11.806 12.708 15.112 16.012 19.343 20.175 24.759 25.421 31.691 32.030 40.565 40.358 51.923 50.851 68.461 64,072 85 071 80.731 108.890 101.721 139.380 128.169 178 406 161 492 228.360 1.907 2.364 2.932 3.635 4.508 5.590 6.931 8.594 10657 13.215 16.386 20.319 25.196 31.243 38.741 48 039 59.568 73.864 91.592 113.574 30% 32% 40 1300 1320 1.690 1.742 10 2.197 2300 2.1 2.856 3.036 3.4 3713 4.007 5 4.827 5.290 7.4 6.275 6.983 10 8.157 9.217 14 10.604 12.166 20 13.780 16.060 28 17.922 21.199 40 23.298 27.983 58 30288 36.937 79 39.374 48.757 111 51.186 54 359 155 66.542 84.954 217 88,504 112.139 304 112455 148.024 420 146. 192 195 391 597 190.050 257 916 836 247.085 340.549 117 321184 149 393 1635 3.896 2% 4% 20% Compound Amount of Annuity of $1.00 in Arrears (Future Value of Annuity) Periods 6% 8% 10% 12% 14% 16% 18% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 22.020 2040 2060 2.080 2.100 2.120 2.140 2.160 2.180 2200 Period 3 3,060 3.122 3.184 3.246 3.310 3.374 3.440 3.500 3.572 3.640 Period 4 4.122 4.246 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.204 5.416 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.308 5.633 8.975 7336 7.716 8. 115 8.536 8.977 9.442 9.930 Period 7 7.434 7.898 8.394 8.923 9.487 10.089 10.730 11.414 12 142 12.916 Period 8 8.583 9.214 0.897 10.637 11.436 12.300 13,233 14.240 15.327 16.499 Period 9 9.755 10.583 11.491 12.488 13.579 14.776 16.085 17.519 19.036 20.790 Period 10 10.950 12.005 13.101 14.487 15937 17 549 19.337 21.321 23.521 25.950 Period 11 12 169 13.436 14.972 16.645 18.531 20655 23.045 25.733 28.755 32.450 Period 12 13.412 15.026 16.870 18 977 21.384 24 133 27 271 30.650 34.831 39 581 Period 13 14.680 15.627 18.882 21.495 24 523 28.029 32 089 36.786 42.219 48 497 Period 14 15.974 18.292 21.015 24 215 27.975 32.393 37.581 43 672 50.818 59.196 Period 15 17.293 20 024 23 276 27.152 31.772 37 280 43.842 51 660 60.965 72.035 Period 16 18 639 21 825 25.673 30.324 35 950 42.753 50.980 60 925 72.939 87 442 Period 17 20.012 23.698 28 213 33.750 40.545 48 884 59.11871 673 87.068 105.931 Period 18 21.412 25.645 30.906 37 450 45:590 55.750 68 394 84.141 103.740 128.117 Period 19 22 841 27.671 33.760 41.446 51.150 63.440 78.909 98,603 123,414 154.740 Period 20 24.297 20.778 36.786 45.762 57.275 72.05291 025 115.380 146.628 186.688 Period 21 25.783 31 909 39.993 50.423 64 002 81.699 104.768 134.841 174.021 225.026 Period 22 27 299 34 248 43.392 55,457 71403 92.503 120 436 157415 206.345 271,031 22% 1.000 2.220 3.708 5524 7.740 10.442 13.740 17.762 22670 28.657 35.962 44.874 55.746 09.010 85.192 104.935 129.020 158.405 194.254 237 989 291 347 356.443 24% 1.000 2.240 3.778 5.684 8.048 10.980 14.615 19.123 24.712 31043 40.238 50,895 64.110 80.496 100 815 126.011 157.253 196 094 244.033 303 601 377.465 469.056 26% 1.000 2.260 3.848 5.848 8.368 11544 15.546 20.588 26.940 34.945 45.031 57739 73751 93.928 119.347 151 377 191.735 242 585 306.658 387 389 489.110 617.278 28% 1.000 2.280 3.918 6.016 8.700 12.136 16.534 22 163 29.369 38.593 50.308 65.510 84 853 109.612 141.303 181.868 233.791 300.252 385 323 494.213 633 593 311.999 30% 32% 1,000 1000 2.300 2320 3.990 4.062 6.187 6.362 9043 9398 12 765 13.400 17.583 18.690 23.850 25.678 32.015 34.895 42.619 47.062 58405 63122 74.327 84.320 97 625 112 303 127.013 149 240 167.286 197937 218.472 262.356 285,014 347.300 371 518 459.419 483 973 607.472 630.165 802.863 820 215 1000.779 1067280 1401 229