Question 4 of 12 - /4 View Policies Current Attempt in Progress Martinez's Lawn Service needs to purchase a new lawnmower costing $8,486 to replace an old lawnmower that cannot be repaired. The new lawnmower is expected to have a useful life of 7 years, with no salvage value at the end of that period. Click here to view the factors (a) If Martinez's required rate of return is 12%, what level of annual cash savings must the lawnmower generate to be considered an acceptable investment under the net present value method? (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, c.8. 58,971.) Annual cash savings should be $ (b) If Martinez's required rate of return is 14%, what level of annual cash savings must the lawnmower generate to be considered an acceptable investment under the net present value method? (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to decimal place, e.g. 58,971.) Annual cash savings should be $ eTextbook and Media Avtomter of used Submit Answer APPENDIX 9.1 Present value of $1 received in n periods. Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 1 2 3 4 S 0.9615 0.9246 0.8890 0.8548 0.8219 0.9524 0.9070 0.8638 0.8227 0.7835 0.9434 0.8900 0.8396 0.7921 0.7473 0.9346 0.8734 0.8163 0.7629 0.7130 0.9259 0.8573 0.7938 0.7350 0.6806 0.9174 0.9091 0.8417 0.8264 0.7722 0.7513 0.7084 0.6830 0.6499 0.6209 0.9009 0.8929 0.8850 0.8116 0.7972 0.7831 0.7312 0.7118 0.6931 0.6587 0.6355 0.6133 0.5935 0.5674 0.5428 14% 16% 18% 2016 0.8772 0.8621 0.8475 0.8333 0.7695 0.7432 0.7182 0.6944 0.6750 0.6407 0.6086 0.5787 0.5921 0.5523 0.5158 0.4823 0.5194 0.4761 0,4371 04019 6 7 8 9 10 0.7903 0.7599 0.7307 0.7026 0.6756 0.7462 0.7107 0.6768 0.6446 0.6139 0.7050 0.6663 0.6651 0.6227 0.6274 0.5820 0.5919 0.5439 0.5584 0.5083 0,6302 0.5835 0.5403 0.5002 0.4632 0.5963 0.5645 0.5346 0.5470 0.5132 0.4817 0.5019 0.4665 0.4339 0.4604 0.4241 0.3909 0.4224 0.3855 0.3522 0.5066 0,4523 0.4039 0.3606 0.3220 0.4803 0.4556 04104 0.3704 0.3349 0.4251 0.3996 0.3538 0.3139 0.2791 0.3762 0.3506 0.3050 0.2660 0.2326 0.3329 0.3075 0.2630 0.2255 0.1938 0.2946 0.2697 0.2267 0.1911 0.1615 11 12 13 14 15 0.6496 0.6246 0.6006 0.5775 0.5553 0.5847 0.5568 0.5303 0.5051 0.4810 0.5268 0.4970 0.4688 0.4423 0.4173 0.4751 0.4440 0.4150 0.3878 0.3624 0.4289 0.3971 0.3677 0.3405 0.3152 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.1954 0.1619 0.1346 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1685 0.1372 0.1122 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1452 0.1163 0.0935 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1252 0.0985 0.0779 0.2745 0.2394 0.2090 0.1827 0.1599 0.14010.1079 0,0835 0.0649 16 0.5339 17 0.5134 18 0.4936 19 0.4746 20 0.4564 $1 PV1 = (1 + i)" 0.4581 0.4363 0.4155 0.3957 0.3769 0.3936 0.3714 0.3503 0.3305 0.3118 0.3387 0.3166 0.2959 0.2765 0.2584 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.0930 0.0708 0.0541 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0802 0.0600 0.0451 0.2502 0.2120 0.1799 01528 0.1300 0.1108 0.0946 0.0691 0.0508 0.0376 0.2317 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0596 0.0431 0.0313 0.2145 0.1784 0.1486 0.1240 0.1037 0.0868 0.0728 0.0514 0.0365 0,0261 APPENDIX 9.2 Present value of an annuity of per period Periods 1 2 3 4 5 4% 0.9615 1.8861 2.7751 3.6299 4.4518 5% 0.9524 1.8594 2.7232 3.5460 41295 6% 0.9434 1.8334 2.6730 3.4651 4.2124 79 8% 94 10% 119 12 139 145 16% 1896 2016 0.9346 0.9259 0.9174 0.691 09009 0.8929 0.88900772 0 M2 0.8475 08.333 1.8080 1.7833 1.7591 1.7355 1.7125 1.6901 1661 1.6467 1.0 15656 1.527 2.6243 2.5771 25313 24868 2.443724018 2.36122.3216 2.245922174121065 3.3872331213.2.197 301698 3.1024 3.03732974529137 2.7982 2.0001 28 4.10023992788973.7007 3.6048 5172 3.4331 27433127229900 6 7 8 9 10 5.2421 6.0021 6.7322 7.4353 8.1109 5.0757 5.7864 6.4632 7.1078 7.7217 4.9173 5,5824 6.2098 6.8017 7.3601 4.76654/62294.485943553 4.2005 41114 09757 1684714976 1955 5.3893 5.2064 5.0330 4.8684 4.7122 4.5618 44226428340363.811536046 5.9713 5.74665.5348 5:3349 5.1461 4.9676 4.7958 461 4.4M 40776 372 6,5152 6.346959952 5.750 5.5370 5132 S.1317 4.9461 4.60 4.300 40310 7.0236 6.7101 6:4177 6.14-46 5.8892 5.65025.4262 52161 47332 44941 41925 11 8.7605 8.3064 7.8869 7.4987 7.13906.805264951 62065 5.9377 12 9.3851 5.6869 5.45275023646560 8.8633 8.3838 43271 7.9427 75361 7.1607 6.8137 64924 6.1946 59176 5660 5.1971 4.793244392 9.9856 9.3936 8.8527 8.35777.9038 748697.1034 6.7999 6.4235 61218 98424 53423 4.909545827 14 10.5631 9.8986 9.2950 8.74558.24427.78627.3667 69819 6.6282 6.1025 6.0021 54675 5.001 46106 15 11.1184 10.3797 9.7122 9.1079 85595 8.0607 7.6061 7.1909 68109 6.4624 6.1422 5.5753 5.0916 46755 16 116523 10.8378 10.1059 9.4466 88514 83126 78237 73792 6.97406603963651 56685 5.1674 4.7296 17 121657 11.2741 10.4773 9.7632 9.1216 8.54368.0216 7.5485 7.1196 6.7291 637295.7457 5.2223 4.7746 18 12.6593 11.6896 10.8276 10.05919.3719 8.7556 8.2014 7.7016 7.3497 68399 6.4674 5.8178 5.2732 48122 13.1339 19 120853 11.1581 10.3356 9.6036 89501 8.3649 69380 65504 58775 53162 4.8435 78393 7.3658 7.4694 70348 66231 5925 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.9633 535274869 20 13.5903 1 51 - (1+ PVAS