Question 10 13 pts Summers, Inc., is considering the purchase of a machine that would cost $575,000 and would last for 15 years, at the end of which the machine would have a salvage value of $2,500. The machine would reduce labor and other costs by $75,000 per year, while adding $38,300 in depreciation expense. Additional working capital of $10,000 would be needed immediately, all of which would be recovered at the end of 15 years. The company requires a minimum pretax return of 8% on all investment projects Required: Determine the net present value of the project. Show your work! TABLE 3 Present Value of 1 (w) Periods 5% 2 3 4 5 6 2 96154 92456 88900 RSAND 82193 79031 75902 73000 70259 67556 6-95 62460 057 57748 55526 30391 51337 8 9 10 -90700 6184 R2220 78353 74622 .71056 .67684 64461 61391 5468 .SSSH 5032 SOSO7 N102 45811 4 41552 39573 1709 6% 94140 82000 392 79209 .74726 70496 66506 62741 59190 55819 52679 4997 4664 4420 41727 39968 37136 15044 31051 31180 8% .92593 83734 79383 78503 ISS 62017 58149 54027 50025 46319 42888 19711 36770 34046 31524 29189 27027 25025 20171 21455 9% 91743 4165 -77218 70843 6-1993 59627 34703 50187 46003 42241 18753 35554 32618 29925 27454 25187 23107 21199 1949 1780 10% SOFA X2645 75132 ORDI 62092 S47 51316 40651 43410 3554 35019 360 28946 113 2.1919 21763 519785 1796 16 14364 12 1926 .79719 71178 41552 56743 3663 45235 .40388 61 32197 26748 11% 90090 .KIM 73119 .65873 59345 53464 48166 430093 39092 35218 31728 28584 25751 21199 2020 18%29 103 15282 13766 12401 15% 86957 .75614 65752 37175 .49718 4321 37594 32090 28424 244719 21494 18001 16253 14120 12210 107 1929 ORCI 07027 06110 12 13 14 15 16 17 22917 20462 18070 16312 1444 10 11611 1067 20 47464 45629 TABLE 4 Present Value of an Annuity of 1 (n) Periods 4% 9% 1 2 3 4 5 6 7 8 9 10 96154 1.88609 2.77509 3.62990 4.45182 5.24214 6.00205 6.73274 7.43533 8.11090 8.76048 9.38507 9.98565 10.56312 11.11839 11.65230 12.16567 12.65930 13.13394 13.59033 5% .95238 1.85941 2.72325 3.54595 4.32948 5.07569 5.78637 6.46321 7.10782 7.72173 8.30641 8.86325 9.39357 9.89864 10.37966 10,83777 11.27407 11.68959 12.08532 12.46221 6% .94340 1.83339 2.67301 3.46511 4.21236 4.91732 5.58238 6.20979 6.80169 7.36009 7.88687 8.38384 8.85268 9.29498 9.71225 10.10590 10.47726 10.82760 11.15812 11.46992 8% .92593 1.78326 2.57710 3.31213 3.99271 4.62288 5.20637 5.74664 6.24689 6.71008 7.13896 7.53608 7.90378 8.24424 8.55948 8.85137 9.12164 9.37189 9.60360 9.81815 .91743 1.75911 2.53130 3.23972 3.88965 4.48592 5.03295 5.53482 5.99525 6.41766 6.80519 7.16073 7.48690 7.78615 8.06069 8.31256 8.54363 8.75563 8.95012 9.12855 10% .90909 1.73554 2.48685 3.16986 3.79079 4.35526 4.86842 5.33493 5.75902 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7.82371 8.02155 8.20141 8.36492 8.51356 11% .90090 1.71252 2.44371 3.10245 3.69590 4.23054 4.71220 5.14612 5.53705 5.88923 6.20652 6.49236 6,74987 6.98187 7.19087 7.37916 7.54879 7.70162 7.83929 7.96333 12% .89286 1.69005 2.40183 3.03735 3.60478 4.11141 4.56376 4.96764 5.32825 5.65022 5.93770 6.194437 6.42355 6.62817 6.81086 6.97399 7.11963 7.24967 7.36578 7.46944 15% .86957 1.62571 2.28323 2.85498 3.35216 3.78448 4.16042 4.48732 4.77158 5.01877 5.23371 5.42062 5.58315 5.72448 5.84737 5.95424 6,04716 6.12797 6.19823 6.25933 11 12 13 14 15 16 17 18 19 20 Edit View Insert Format Tools Table Dumment T > 9 6