Question 5 of 12 UTAMpemrogress The Culver Company is planning to purchase $468,000 of equipment with an estimated 7-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment: Year Projected Cash Flows $208,000 1 2 140,000 3 123,000 4 59.600 5 62.300 6 49.700 7 41.200 Total $683,800 Click here to view the factor table Calculate the net present value of the proposed equipment purchase. Culver uses a 11% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, c.8.58,971.) $ Net present value APPENDIX 9.1 Present value of $1 received in n periods. Periods 4% 5% 6% 7% 9% 109 11 13% 1 2 3 4 5 0.9615 0.9246 0.8890 0.8548 0.8219 0.9524 0.9070 0.8638 0.8227 0.7835 0.9434 0.9346 0.8900 0.8734 0.8396 0.8163 0.7921 0.7629 0.7473 0.7130 8% 0.9259 0.8573 0.7938 0.7350 0.6806 0.9174 0.8417 0.7722 0.7084 0.6499 0.9091 0.8264 0.7513 0.6830 0.6209 0.9009 0.8116 0.7312 0.6587 0.5935 12 0.8929 0.7972 0.7118 0.6355 0.5674 0.8&SO 0.7831 0.6931 0.6133 0.5429 14% 0.8772 0.7695 0,6750 0.5921 0.5194 16% 18% 20% 0.8621 0.8475 0.8333 0.7432 0.7182 0.6944 0.6407 0.6086 05787 0.5523 0.5158 0.4823 0.4761 0.4371 0.4019 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 0.6651 0.6274 0.5919 0.5584 0.6663 0.6227 0.5820 0.5439 0.5083 0.6302 0.5835 0.5003 0.5002 0.4632 0.5963 0.56450.5346 0.5066 0.4803 04556 04104 0.3704 0.3349 0.5470 0.3132 0.4817 0.4523 04251 0.3996 0.3538 0.3139 0.2791 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3050 0.2660 0.2326 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 0.2630 0.2255 0.1938 0.4224 03855 0.3522 0.3220 0.2946 0.269702267 0.1911 0.1615 11 0.6496 0.6246 0.6006 0.5775 0.5553 0.5268 0.4970 0.4688 0.4423 0.4173 0.5847 0.5568 0.5303 0.5051 0.4810 0.4751 0.4440 0.4150 0.3878 0.3624 13 14 15 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.1954 0.1619 0.1346 0.3971 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1685 01372 0.1122 0.3677 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1452 0.1163 0.0935 0.3405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1252 0.0985 0.0779 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1079 0.0835 0.0649 0.4581 0.4363 0.4155 0.3957 0.3769 16 0.5339 17 0.5134 18 0.4936 19 0.4746 20 0.4564 S1 (1+1)" 0.3936 0.3714 0.3503 0.3305 0.3118 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.0930 0.0708 0.0541 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0SOZ 0.0600 0.0451 02120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0691 0050 0.0376 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0596 0.0431 0.0313 0.1784 0.1486 0.1240 0.1037 00868 0.0728 0.0514 0.0365 0.0261 0.3387 0.2919 0.3166 0.2703 0.2959 0.2502 0.2765 0.2317 0.2584 0.2145 PV = APPENDIX 9.2 Present value of an annuity of $1 per period. Periods 4% 5% 6% 79 8% 9% 10% 11% 12% 16% 1 2 3 4 5 0.9615 1.8861 2.7751 3.6299 4.4518 0.9524 1.8594 2.7232 3.5460 4.3295 0.9434 1.8334 2.6730 3,4651 4.2124 0.9346 0.9259 0.9174 0.9091 1.8080 1.7833 1.7591 1.7355 2.6243 2.5771 2.5313 2.4868 3.3872 3.3121 3.2397 3.1698 4.1002 3.9927 3.8897 3.7907 0.9009 1.7125 2.4437 3.1024 3.6959 0.8929 1.6901 2.4018 3.0373 3,6048 13% 14% 0.8850 0.8772 1.6681 1.6467 2.3612 2.3216 2.9745 2.9137 3.5172 3.4331 0.8621 1.6052 2.2459 2.7982 3.2743 18% 20% 0.8475 0.8333 1.5656 1.5278 2.1743 21065 26901 2.5887 3.1272 2.9906 6 7 8 9 10 5.2421 6.0021 6.7327 7.4353 8.1109 5.0757 5.7864 6.4632 7.1078 7.7217 4.9173 5.5824 6.2098 6.8017 7.3601 4.7665 4.6229 4.48594.3553 5.3893 5.2064 5.0330 4.8684 5.9713 5.7466 5.5348 5.3349 6,5152 6.2469 5.9952 5.7590 7.0236 6.7101 6,419 6.1446 4.2305 4.1114 4.7122 4.5638 5.1461 4.9676 5.5370 5.3282 5.8892 5.6502 3.9975 44226 4.7988 5.1317 5.4262 3.8887 4.2883 4.6389 4.9464 5.2161 3.6847 3.4976 33255 4.0386 3.8115 3.6046 4.3436 4.0776 3.8372 4.6065 4.3030 4.0310 48332 4.4941 4.1925 1 12 13 14 15 8.7605 9.3851 9.9856 10.5631 11.1184 8.3064 8.8633 9.3936 9.8986 10.3797 7.8869 8.3838 8.8527 9.2950 9.7122 7.4987 7.13906.8052 6,4951 6.2065 7.9427 7.5361 7.1607 6.8137 6.4924 8.3577 7.9038 7.4869 7.1034 6.7499 8.74558.24427.7862 7.3667 6.9819 9.10798.55958.0607 7.6061 7.1909 5.9377 5.6869 6.1944 5.9176 6.4235 6.1218 6,6282 6.3025 6.8109 6.4624 54527 5.0286 4.6560 43271 5.6603 5.1971 4.793244392 58424 5.34234.9095 4.5327 6.0021 5.4675 5.681 4.6106 6.1422 5.5756 5.0916 4.6755 7.3792 7.5488 7.7016 7.8393 7.9633 16 17 18 19 20 5.6685 5.1624 4.7296 5.7487 52223 4.7746 5.8178 5.2732 4.8122 5.8775 5.3162 4.8435 5.9288 5.3527 4.8696 6.9740 6,6039 6.2651 7.1196 6.7291 6.3729 7.2497 6.8399 6.4674 7.3658 6.9380 6.5504 7.4694 7.0248 6.6231 11.6523 10.8378 10.1059 9.4466 88514 8.3126 7.8237 12.1657 11.2741 10.4773 9.7632 9.12168.5436 8.0216 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 13.5903 12.4622 11.4699 10.5940 9.81819.1285 8.5136 1 $1 - (1+1) PVA