Required information. [The following information applies to the questions displayed below.] Project Y requires a $331,500 Investment for new machinery with a five-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1. FV of $1, PVA of $1, and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Project Y $ 400,000 179,200 66,300 29,000 $ 125,500 Required: 1. Compute Project Y's annual net cash flows. Annual amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Net cash flow Income Cash Flow $ 400,000 179,200 66,300 29,000 $ 125,500 $ 0 Table B.1 Present Value of 1 p=1/(1+i)" Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 2 0.9803 0.9612 0.9426 0.9246 3 0.9706 0.9423 0.9151 0.8890 0.8638 0.9070 0.8900 0.8734 0.8163 0.8396 4 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.7629 5 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7130 6 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.9259 0.8573 0.8417 0.8264 0.7972 0.7938 0.7722 0.7513 0.7118 0.7350 0.7084 0.6830 0.6355 0.6806 0.6663 0.6302 9% 10% 12% 15% Periods 09174 0.9091 0.8929 0.8696 1 0.7561 2 0.6575 3 0.5718 4 7 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 8 0.9235 0.8535 0.7894 0.7307 0.6768 0.6274 9 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.6227 0.5835 0.5820 0.5439 10 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 04632 0.4224 0.6499 0.6209 0.5674 0.5963 0.5645 0.5066 0.4323 0.5470 0.5132 0.4523 0.5403 0.5019 0.4665 0.4039 0.5002 0.4604 0.4241 0.3855 0.4972 5 6 0.3759 7 0.3269 8 0.2843 0.3606 0.3220 0.2472 9 10 11 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 04751 0.4289 0.3875 0.3505 0.2875 0.2149 11 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 0.3971 0.3555 0.3186 0.2567 0.186 12 13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2292 0.1625 13 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 14 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 15 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 16 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 17 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 18 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 19 20 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.2584 0.2145 0.1784 0.1486 0.1037 0.0611 20 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 25 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 30 35 0.7059 0.5000 0.3554 0.2534 0.1813 0.1301 0.0937 0.0676 401 0.6717 0.4529 0.3066 0.2083 0.1420 0.0972 0.0668 0.0460 0.0490 0.0318 0.0221 0.0356 0.0189 0.0107 0.0075 35 0.0037 40 *Used to compute the present value of a known future amount. For example: How much would you need to invest today at 10% compounded semiannually to accumulate $5,000 in 6 years from and a semiannual rate of 5%), the factor is 0.5568. You would need to invest $2,784 today ($5,000 x 0.5568). Table B.2 Future Value of 1 S=(1+i)" Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% Periods 0 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 0 1 1.0100 1.0200 1.0300 1.0400 1.0500 1.0600 1.0700 1.0800 1.0900 1.1000 1.1200 1.1500 1 2 1.0201 1.0404 1.0609 1.0816 1.1025 1.1236 1.1449 1.1664 1.1881 1.2100 1.2544 1.3225 2 3 1.0303 1.0612 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 14049 1.5209 3 4 1.0406 1.0824 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 14116 1.4641 13735 1.7490 4 5 1.0510 1.1041 1.1593 1.2167 1.2763 1.3382 14026 14693 1.5386 1.6105 1.7623 2.0114 5 6 1.0615 1.1262 1.1941 1.2653 1.3401 14185 1.5007 1.5869 1.6771 1.7716 1.9738 2.3131 6 7 1.0721 1.1487 1.2299 1.3159 14071 1.5036 1.6058 1.7138 1.8280 1.9487 2.2107 2.6600 7 8 1.0829 1.1717 1.2668 13686 14775 1.5938 1.7182 1.8509 1.9926 2.1436 24760 3.0590 8 9. 1.0937 1.1951 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731 3.5179 9 10 1.1046 1.2190 1.3439 14802 1.6289 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058 4.0456 10 11 1.1157 1.2434 13842 1.5395 1.7103 1.8983 2.1049 2.3316 2.5804 2.8531 3.4785 4.6524 11 12 1.1268 1.2682 14258 1.6010 1.7959 2.0122 2.2522 2.5182 2.8127 3.1384 3.8960 5.3503 12 13 1.1381 1.2936 14685 1.6651 1.8856 2.1329 2.4098 2.7196 3.0658 3:4523 4.3635 6.1528 13 14 1.1495 13195 151261 1.7317 1.9799 2.2609 2.5785 2.9372 3.3417 3.7975 4.8871 7.0757 14 15 1.1610 1.3459 1.5580 1.8009 2.0789 2.3966 2.7590 3.1722 3.6425 4.1772 54736 8.1371 15 16 1.17261 1.3728 1.6047 1.8730 2.1829 25404 2.9522 34259 3.9703 4.5950 6.1304 9.3576 16 17 1.1843) 14002 1.6528 19479 2.2920 2.6928 3.1588 3.7000 4.3276 5.0545 6.8660 10.7613 17 18 1.1961 14282 1.7024 2.0258 2.4066 2.8543 33799 3.9960 4.7171 55599 7.6900 12.3755 18 19 1.2081 14568 1.7535 2.1068 2.5270 30256 3.6165 4.3157 5.1417 6.1159 8.6128 14.2318 19 20 1.2202 14859 1.8061 2.1911 2.6533 3.2071 3.8697 4.6610 5.6044 6.7275 9.6463 16.3665 20 25 1.2824 1.6406 2.0938 2.6658 3.3864 4.2919 54274 8.6231 10.8347 30 13478 1.8114 24273 3.2434 4.3219 35 14166 1.9999 2.8139 3.9461 40 1.4889 2.2080 3.2620 4.8010 5.5160 7.0400 7.6123 5.7435 10.6766 7.6861 14.9745 10.2857 17.4494 6.8485 13.2677 10.0627 28.1024 204140 52.7996 14.7853 133.1755 21.7245 31.4094 45.2593 93.0510 267.8635 17.0001 32.9190 25 29.9599 66.2118 30 35 40 Used to compute the future value of a known present amount. For example: What is the accumulated value of $3,000 invested today at 8% compounded quarterly for 5 years? Using the factor of 2%), the factor is 14859. The accumulated value is $4,457.70 ($3,000 x 14859). Table B.3 Present Value of an Annuity of 1 p=[1-1/(1+i)" Vi Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% Periods 1 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 09174 0.9091 2 1.9704 1.9416 1.9135 1.8861 1.8594 3 2.9410 2.8839 2.8286 2.7751 2.7232 1.8334 1.8080 1.7833 1.7591 2.6730 2.6243 2.5771 2.5313 2.4869 0.8929 1.7355 1.6901 1.6257 0.8696 1 2 2.4018 2.2832 3 4 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1699 3.0373 2.8550 4 5 4.8534 4.7135 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 6 5.7955 5.6014 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 3.7908 4.4859 4.3553 4.1114 3.6048 3.3522 5 3.7845 6 7 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.5638 4.1604 7 8 7.6517 7.3255 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 4.9676 4.4873 8 9 8.5660 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 10 9.4713 8.9826 8.5302 8.1109 7.7217 7.3601 7.0236 6.7101 11 10.3676 9.7868 9.2526 8.7605 8.3064 7.8869 7.4987 7.1390 5.9952 5.7590 6.4177 6.1446 6.8052 6.4951 5.3282 4.7716 9 5.6502 5.9377 5.2337 5.0188 10 11 12 11.2551 10.5753 99540 9.3851 8.8633 8.3838 13 12.1337 11.3484 10.6350 9.9856 9.3936 8.8527 14 13.0037 12.1062 11.2961 10.5631 9.8986 9.2950 15 13.8651 12.8493 16 14.7179 13.5777 11.9379 12.5611 11.6523 11.1184 10.3797 9.7122 10.8378 10.1059 17 15.5623 18. 19 20 14.2919 13.1661 16.3983 14.9920 13.7535 17.2260 15.6785 14.3238 18.0456 12.1657 11.2741 10.4773 11.68961 10.8276 25 30 35 40 25.8077 22.3965 29.4086 24.9986 32.8347 27.3555 7.1607 6.8137 6.1944 54206 7.4869 7.1034 6.4235 5.5831 7.7862 7.3667 6.6282 8.0607 7.6061 6.8109 8.3126 7.8237 6.9740 5.9542 8.5436 8.0216 7.1196 6.0472 12.6593 10.0591 9.3719 8.7556 8.2014 7.2497 6.1280 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 7.3658 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.4694 22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.8226 9.0770 7.8431 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 10.2737 9.4269 8.0552 21.4872 18.6646 16.3742 14.4982 12.9477 11.6546 10.5668 9.6442 8.1755 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 9.7791 8.2438 7.9427 7.5361 12 8.3577 7.9038 13 8.7455 8.2442 5.7245 14 9.1079 8.5595 5.8474 15 9.4466 9.7632 8.8514 9.1216 16 17 18 6.1982 19 6.2593 20 6.4641 25 6.5660 30 6.6166 35 6.6418 40 *Used to calculate the present value of a 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 assuming an ann per year for 10 years is the equivalent of $12,835 today ($2,000 x 6.4177). Table B.4 Future Value of an Annuity of 1 f=[(1+0"-14 Rate Periods 1 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% Periods 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 E 2 20100 2.0200 2.0300 2.0400 2.0500 2.0600 2.0700 2.0800 2.0900 2.1000 2.1200 2.1500 2 3 3.0301 3.0604 3.0909 3.3216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.3744 34725 3 4 4.0604 4.1216 4.1836 4.2465 43101 5 5.1010 5.2040 5.3091 5.4163 6 6.1520 6.3081 6.4684 6.6330 7 7.2135 74343 B 8.2857 8.5830 7.6625 8.8923 9 9.3685 9.7546 10 10.4622 12.0061 11 12 13 14 15 16 17 18 19 20.8109 22.8406 20 25 30 22.0190 24.2974 28.2432 32.0303 34.7849 40.5681 35 40 488864 60.4020 75.4013 120.7998 4.3746 5.5256 5.6371 6.8019 6.9753 7.8983 8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 10.0890 11.0668 9.2142 9.5491 9.8975 10.2598 10.6366 11.0285 11.4359 12.2997 10.1591 10.5828 11.0266 114913 11.9780 12.4876 13.0210 13.5795 14.7757 16.7858 10.9497 11.4639 12.5779 13.1808 13.8164 14.4866 15.1929 15.9374 17.5487 20.3037 11.5668 12.1687 12.8078 13.4864 14.2068 14.9716 15.7836 16.6455 17.5603 18.5312 20.6546 12.6825 13.4121 14.1920 15.0258 15.9171 16.8699 17.8885 18.9771 20.1407 21.3843 24.1331 13.8093 14.6803 15.6178 16.6268 17.7130 188821 20.1406 21.4953 22.9534 24.5227 28.0291 34.3519 14.9474 159739 17.0863 18.2919 19.5986 21.0151 22.5505 24.2149 26.0192 27.9750 32.3926 40.5047 16.0969 17.2934 18.5989 20.0236 21.5786 23.2760 25.1290 27.1521 29.3609 31.7725 37.2797 47.5804 17.2579 18.6393 20.1569 21.8245 23.6575 25.6725 27.8881 30.3243 33.0034 35.9497 42.7533 55.7175 18.4304 20.0121 21.7616 23.6975 25.8404 28.2129 30.8402 33.7502 36.9737 40.5447 48.8837 65.0751 19.6147 214123 23.4144 25.6454 28.1324 30.9057 33.9990 37.4502 41.3013 45.5992 25.1169 27.6712 30.5390 33.7600 37.3790 414463 46.0185 51.1591 26.8704 29.7781 33.0660 36.7856 40.9955 45.7620 51.1601 57.2750 364593 41.6459 47.7271 54.8645 63.2490 73.1059 84.7009 47.5754 56.0849 66.4388 79.0582 94.4608 113.2832 136.3075 41.6603 49.9945 60.4621 73.6522 90.3203 111.4348 138.2369 172.3168 215.7108 95.0255 154.7620 199.6351 259.0565 337.8824 44399 5.7507 4.5061 4.5731 4.6410 4.7793 49934 4 5.3666 5.9847 6.1051 63528 6.7424 5 7.1533 7.3359 7.5233 7.7156 8.1152 8.7537 6 7 13.7268 8 9 10 24.3493 11 29.0017 12 13 14 15 16 17 55.7497 75.8364 63.4397 88.2118 72.0524 102.4436 98.3471 133.3339 212.7930 164.4940 241.3327 434.7451 271.0244 431.6635 881.1702 442.5926 767.0914 1,779 0903 40 18 20 25 30 35 28382S 19 Used to calculate the future value of a series of equal payments made at the end of each period. For example: What is the future value of $4,000 per year for 6 years assuming an annual interest rate of 8%78 year for 6 years accumulates to $29.343 60 ($4,000 x 7.3359).