Required information [The following information applies to the questions displayed below) Most Company has an opportunity to invest in one of two new projects Project Y requires a $335,000 investment for new machinery with a six-year life and no salvage value Project Z requires a $335,000 investment for new machinery with a five-year life and no salvage value. The two projects yleld the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1. FV of $1. PVA of $i, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project Y Project Sales $370,000 $296,eee Expenses Direct materials 51,Bee 37.000 Direct labor 74, eee 44,480 Overhead including depreciation 133,2ee 133, 2ee Selling and administrative expenses 26,000 26, eee Total expenses 285,000 248,689 Pretax income 85,000 55,400 Income taxes (30%) 25, see 16,620 Net income $ 59,500 $ 38,780 4. Determine each project's net present value using 9% as the discount rate Assume that cash flows occur at each year end (Round your intermediate calculations.) 4. Determine each project's net present value using 9% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Project Y Chart values are based on: n 6 9% Amount X PV Factor Present Value Select Chart Present Value of an Annuity of 1 $ 0 Present value of cash inflows Present value of cash outflows Net present value Project 2 Chart values are based on: n 3% Select Chart Amount X PV Factor Present Value $ 0 Present value of cash inflows Present value of cash outflows Net prosent value TABLE B.1 Present Value of 1 p=1/(1+1 1% 7% Rate Periods 2% 3% 5% 6% 9% 10% 12% 15% 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.8929 0.8696 2 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.7972 0.7561 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7118 0.6575 4 09610 0.9238 0.8885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6355 0.5718 5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5674 0.4972 6 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5066 0.4323 7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4523 0.3759 8 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4039 0.3269 9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3606 0.2843 10 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 03855 0.3220 0.2472 10 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.2875 0.2149 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2567 0.1869 13 0.8787 0.7730 0.6810 06006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2292 0.1625 14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2046 0.1413 15 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.1827 0.1229 16 0.8528 0.7284 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1631 0.1069 17 0.8444 0.7142 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1456 0.0929 18 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1300 0.0808 19 0.8277 0.6864 0.5703 0.4746 0.3957 0.3305 0.2765 0.2317 0.1945 0.1635 0.1161 0.0703 20 0.8195 0.6730 0.5537 0.4564 0.3769 03118 0.2584 0.2145 0.1784 0.1486 0.1037 0.0611 25 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0923 0.0588 0.0304 30 0.7419 0.5521 0.4120 0.3083 0.2314 0.1741 0.1314 0.0994 0.0754 0.0573 0.0334 0.0151 35 0.7059 0.5000 0.3554 0.2534 0.1813 0.1301 0.0937 0,0676 0.0490 0.0356 0.0189 0.0075 40 0.6717 0.4529 0.3066 0.2083 0.1420 0.0972 0.0668 0,0460 0.0318 0.0221 0.0107 0.0037 "Used to compute the present value of a known future mot. For example: How much would you need to invest day at 10% compounded semana cumle 55.00 in 6 years from Inday? Using the fact of 12 and 12 semiannuel period and asemanate of the factor is 0.5568. You would need to invest $2.784 today 5.200 x 0.5568 TABLE B.2 Future Value of 1 s=(1+1) Porfods 1% 2% 3% 4% Rete 7% 5% 5% 8% 9% 10% 12% 15% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 1.0000 1.0000 1.0100 1.0200 1.0201 1.0404 1.0303 1.0612 1.0406 1.0824 1.0510 1.1041 1.0615 1.1262 1.0721 1.1487 1.0829 1.1717 1.0937 1.1951 1.1046 1.2190 1.1157 1.2434 1.1268 1.2682 1.1381 1.2936 1.1495 1.3195 1.1510 1.3459 1.1726 1.3728 1.1843 1.4002 1.1961 1.4282 1.2081 1.4568 1.2202 1.4859 1.2824 1.6406 1.3478 1.8114 1.4166 1.9999 1.4889 2.2080 1.0000 1.0300 1.0609 1.0927 1.1255 1.1593 1.1941 1.2299 1.2668 1.3048 1.3439 1.3842 1.4258 1.4685 1.5126 1.5580 1.6047 1.6528 1.7024 1.7535 1.8061 2.0938 2.4273 2.8139 3.2620 1.0000 1.0400 1.0816 1.1249 1.1699 1.2167 1.2653 1.3159 1.3686 1.4233 1.4802 1.5395 1.6010 1.6651 1.7317 1.8009 1.8730 1.9479 20258 2. 1068 2.1911 2.6658 3.2434 3.9461 4.8010 1.0000 1.0500 1.1025 1.1576 1.2155 1.2763 1.3401 1.4071 1.4775 1.5513 1.6289 1.7103 1.7959 1.8856 1.9799 2.0789 2.1829 2.2920 2.4066 2.5270 2.6533 3.3864 4.3219 5.5160 7.0400 1.0000 1.0600 1.1236 1.1910 1.2625 1.3382 1.4185 1.5036 1.5938 1.6895 1.7908 1.8983 20122 2.1329 2.2609 2.3966 2.5404 2.6928 2.8543 3.0256 3.2071 4.2919 5.7435 7.6861 10.2857 1.0000 1.0700 1.1449 1.2250 1.3108 1.4026 1.5007 1.6058 1.7182 1 8385 1.9672 2.1049 22522 2.4098 2.5785 2.7590 2.9522 3.1588 3.3799 3.6165 3.8697 5.4274 7.6123 10.6766 14.9745 1.0000 1.0800 1.1664 1.2597 1.3605 1.4693 1.5869 1.7138 1.8509 1.9990 2.1589 2.3316 2.5182 2.7196 2.9372 3.1722 34259 3.7000 3.9960 4.3157 4.6610 6.8485 10.0627 14.7853 21.7245 1.0000 1.0900 1.1881 1.2950 1.4116 1.5386 1.6771 1.8280 1.9926 2.1719 23674 2.5804 28127 3.0658 3.3417 3.6425 3.9703 4.3276 4.7171 5.1417 5.6044 8.6231 13.2677 20.4140 31.4094 1.0000 1.1000 1.2100 13310 1.4641 1.6105 1.7716 1.9487 2.1436 23579 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 10.8347 17.4494 28. 1024 45.2593 1.0000 1.1200 1.2544 1.4049 1.5735 1.7623 1.9738 22107 24760 2.7731 3.1058 3.4785 3.8960 4.3635 4.8871 5.4736 6.1304 6.8660 7.6900 8.6128 9.6463 17.0001 29.9599 52.7996 93.0510 1.0000 1.1500 13225 1.5209 1.7490 20114 23131 26600 3.0590 3.5179 40456 4.6524 53503 6.1528 7.0757 8.1371 9.3576 10.7613 123755 14.2318 16.3665 32.9190 66.2118 133.1755 267.8635 "Used to compute the future value of nown prent amount. For example: What is the accumulated value of 53.000 invested today at 8 compounded quarterly for 5 years Using the action of 3 und 25020 quarterly periods and a quarterly interest rate of 25).the factor is 14859. The accumulated value is 54,457.70 (53000 x 14859 1 li (1 + i)" TABLE B.3: Present Value of an Annuity of 1 Rate Periods 1% 2% 3% 4% 5% 6X 7% 8% 9% 10% 12% 15% 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 0.9901 0.9804 1.9704 1.9416 2.9410 28839 3.9020 3.8077 48534 4.7135 5.7955 5.6014 6.7282 6.4720 7.6517 7.3255 8.5660 8.1622 9.4713 8.9826 10.3676 9.7868 11.2551 105753 12.1337 11.3484 13.0037 12.1062 13.8651 128493 13.5772 15.5623 14.2919 16.3983 14.9920 17.2260 15.6785 18.0456 16.3514 22.0232 19.5235 25.8077 22.3965 29.4086 24.9986 32834727.3555 0.9709 1.9135 28286 3.7171 45797 5.4172 6.2303 7,0197 7.7861 8.5302 9.2526 9.9540 10.6350 11.2961 11.9379 12.5611 13.1661 13.7535 14,3238 14.8775 17.4131 19.6004 21.4872 23.1148 0.9615 1.8861 2.7751 3.6299 4.4518 5.2421 6.0021 6.7327 7.4353 8.1109 8.7605 9.3851 9.9856 10.5631 11.1184 11.6523 12.1657 12.6593 13.1339 13.5903 15.6221 17.2920 18.6646 19.7928 0.9524 1.8594 2.7232 3.5450 4.3295 5.0757 5.7864 6.4632 7.1078 7.7217 8.3064 8.8633 9.3936 9.8986 10.3797 10.8378 11,2741 11.6896 12,0853 12.4622 14.0939 15.3725 16.3742 17.1591 0.9434 1.8334 26730 3.4651 42124 49173 5.5824 6.2098 6.8017 7.3601 7.8869 8.3838 8.8527 9.2950 9.7122 10,1059 10.4773 10.8276 11.1581 11 4699 12.7834 13.7648 14.4982 15.0463 09346 1.8080 2.6243 33872 4.1002 4.7665 5.3893 5.9713 6.5152 7.0236 24987 7.9427 8.3577 8.7455 9.1079 9.4466 9.7632 10.0591 10.3356 10.5940 11.6536 12.4090 129477 13.3317 0.9259 1.7833 2.5771 3.3121 3.9927 4.6229 5.2064 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 8.2442 8.5595 8.8514 9.1216 9.3719 9.6036 9.8181 10.6748 11.2578 11.6546 11.9246 0.9174 1.7591 25313 3.2397 3.8897 44859 5.0330 5.5348 5.9952 6.4177 6.8052 7.1607 7.4869 7.7862 8.0607 8.3126 8.5436 8.7556 8.9501 9.1285 9.8226 10.2737 10.5668 10.7574 W 9091 1.7355 24869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 9.0770 94269 9.6442 9.7791 0.8929 1.6901 24018 3.0373 3.6048 4.1114 4.5638 4.9676 53282 5.6502 59377 6.1944 6.4235 6.6282 6.8109 6.9740 7.1196 7.2497 7.3658 7.4694 7.8431 8.0552 8 1755 8.2438 0.8696 1.6257 22832 28550 3.3522 3.7845 4.1604 4.4873 4.7715 5.0188 5.2337 5.4206 55831 5.7245 5.8474 5.9542 6.0472 6.1280 6.1982 6.2593 6.4641 6.5660 6.6166 6.6418 107179 Used to calculate the present value of series of equal payments made at the end of each period. For example: What is the present value of 2.000 per year for 10 years auming an na netent rate ol 937 F 6 - 10.9. the Placer le 64177.52.000 per year for 10 years is the equivalent of 12835 koder ($2.000 x 64177 f=[(1 + i)" - 11 TABLE B.40 Future Value of an Annuity of 1 Rate Periods 1% 2% 3% 12% 15% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 1.0000 1,0000 1.0000 20100 20200 20300 3.0301 3.0604 3.0909 4.0604 4.1216 4.1836 5.1010 5.2040 5.3091 6.1520 6.3081 6.4684 7.2135 7.4343 7.6625 8.2857 8.5830 8.8923 9.3685 9.7546 10.1591 10.4622 10.9497 11.4639 11.5668 12.1687 12.8078 12.6825 13.4121 14.1920 13.8093 14.6803 15.6178 149474 15.9739 17.0863 16.0969 17.2934 18.5989 17.2579 18.6393 20.1569 18.4304 20.0121 21.7616 19.6147 21.4123 23.4144 20.8109 22.8406 25.1169 22.0190 24.2974 26.8704 28.2432 320303 36.4593 34.7849 40.5681 475754 41.6603 49.994560.4621 48.886460.4020 75.4013 5% 6% 7% 8% 1.0000 1.0000 1.0000 1.0000 1.0000 2.0400 20500 2.0600 2.0700 2.0800 3.1216 3.1525 3.1836 3.2149 3.2464 4.2465 4.3101 4.3746 4.4399 4.5061 5.4163 5.5256 5.6371 5.7507 5.8666 6.6330 6.8019 6.9753 7.1533 7.3359 7.8983 8.1420 8.3938 8.6540 8.9228 9.2142 9.5491 9.8975 10.2598 10.6366 10.5828 11.0266 11.4913 11.9780 124876 12.0061 12.5779 13.1808 13.8164 144866 13.4864 14.2068 14.9716 15.7836 16.6455 15.0258 15.9171 16,8699 17.8885 18.9771 16.6268 17.7130 18.8821 20.1406 21.4953 18.2919 19.5986 21.0151 22.5505 24.2149 20.0236 21.5786 23.2760 25.1290 27.1521 21.8245 23.6575 25.6725 27.8881 30.3243 23.6975 25.8404 28,2129 30.8402 33.7502 256454 28.1324 30.9057 33.9990 37.4502 27.6712 30.5390 33.7600 37.3790 41.4463 29.7781 33.0660 36.7856 40.9955 45.7620 41.6459 47.7271 548645 632490 73.1059 56.0849 66.4388 79.9582 944608 113.2832 73.6522 90.32031114348 1382369 1723168 95.0255 120.7998 154.7620 1996351 259.0565 9% 10% 1.0000 1.0000 1.0000 1.0000 20900 21000 2.1200 2. 1500 3.2781 3.3100 3.3744 3.4725 45731 4.6410 4.7793 4.9934 5.9847 6.1051 6.3528 6.7424 7.5233 7.7156 8.1152 8.7537 9.2004 9.4872 10.0890 11.0668 11.0285 11.4359 12.2997 13.7268 13.0210 13.5795 14.7757 16.7858 15.1929 15.9374 17.5487 20.3037 17.5603 18.5312 20.6546 24.3493 20.1407 21.3843 24.1331 29.0017 22.9534 24.5227 28.0291 34.3519 26.0192 27.9750 323926 40.5047 29.3509 31.7725 37.2797 47.5804 33.0034 35.9497 42.7533 55.7175 36.9737 40.5447 48.8837 65.0751 41.3013 45.5992 55.7497 75.8364 46.0185 51.1591 63.4397 88.2118 51.1601 57.2750 720524 1024436 84.7009 98.3471 133.3339 2127930 136 3075 164.4940 241,3327 4347451 215.7108 271.0244 431.6635 881.1702 337.8824 442.5926 767,0914 1.779.0903 Used to calculate the future value of as of equal payments made at the end of each period. For cumple: What is the future value of $4.000 per year for your assuming na interest rate of 8%? For 6,18%), the FV factor in 73399. 54.000 per year for 6 years accumulates to $29.343.00 (54.000 x 7.3359)