Required information [The following information applies to the questions displayed below.] Zeff Company purchases a delivery van on January 1, 20X1, at a cost of $15,849. It has a useful life of four years and no estimated salvage value. When making the purchase decision, the company anticipated that the use of the van would generate a revenue (cash) inflow of $5,000 each year, assumed to occur at the end of the year. The discount rate that equates the purchase price to the expected cash inflows is 10%. Assume that depreciation is the company's only expense for the year. Use the following links to the present value tables to calculate answers. (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.) Required: 2. Using the discounted present value method of depreciation, do the following for each of the four years: a. Compute accumulated depreciation and the net book value of the van. b. Prepare Zeff's income statement assuming that the $5,000 expected inflows occur. c. Compute the return on beginning net fixed assets. TABLE 1 Present Value of $1 PV= (1+r)* 1 = (1 + r)- (n) Periods 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 16% 1 2 3 4 5 6 7 17% 0.98039 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 0.86207 0.85470 0.96117 0.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.75614 0.74316 0.73051 0.94232 0.91514 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75132 0.73119 0.71178 0.65752 0.64066 0.62437 0.92385 0.88849 0.85480 0.82270 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.57175 0.55229 0.53365 0.90573 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.49718 0.47611 0.45611 0.88797 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.43233 0.41044 0.38984 0.87056 0.81309 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 0.37594 0.35383 0.33320 0.85349 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.32690 0.30503 0.28478 9 0.83676 0.76642 0.70259 0.64461 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 0.36061 0.28426 0.26295 0.24340 0.82035 0.74409 0.67556 0.61391 0.55839 0.50835 0.46319 0.42241 0.38554 0.35218 0.32197 0.24718 0.22668 0.20804 8 10 11 0.80426 0.72242 0.64958 0.58468 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0.21494 0.19542 0.17781 12 0.78849 0.70138 0.62460 0.55684 0.49697 0.44401 0.39711 0.35553 0.31863 0.28584 0.25668 0.18691 0.16846 0.15197 13 0.77303 0.68095 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.16253 0.14523 0.12989 0.75788 0.66112 0.57748 0.50507 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.14133 0.12520 0.11102 0.74301 0.64186 0.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 0.12289 0.10793 0.09489 14 15 0.72845 0.62317 0.53391 0.45811 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.10686 0.09304 0.08110 17 0.71416 0.60502 0.51337 0.43630 0.37136 0.31657 0.27027 0.23107 0.19784 0.16963 0.14564 0.09293 0.08021 0.06932 0.70016 0.58739 0.49363 0.41552 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.08081 0.06914 0.05925 0.68643 0.57029 0.47464 0.39573 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.07027 0.05961 0.05064 20 0.67297 0.55368 0.45639 0.37689 0.31180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10367 0.06110 0.05139 0.04328 61698 25 0.60953 0.47761 0.37512 0.29530 0.23300 0.18425 0.14602 0.11597 0.09230 0.07361 0.05882 0.03038 0.02447 0.01974 30 0.55207 0.41199 0.30832 0.23138 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 0.03338 0.01510 0.01165 0.00900 35 0.50003 0.35538 0.25342 0.18129 0.13011 0.09366 0.06763 0.04899 0.03558 0.02592 0.01894 0.00751 0.00555 0.00411 0.45289 0.30656 0.20829 0.14205 0.09722 0.06678 0.04603 0.03184 0.02209 0.01538 0.01075 0.00373 0.00264 0.00187 2839 40 TABLE 3 Present Value of an Annuity Due of $1 PVAD=1+ (1+r)-1 (n) Periods 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 16% 1 2 3 4 5 17% 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.98039 1.97087 1.96154 1.95238 1.94340 1.93458 1.92593 1.91743 2.94156 2.91347 2.88609 2.85941 2.83339 2.80802 2.78326 2.75911 3.88388 3.82861 3.77509 3.72325 3.67301 3.62432 3.57710 3.53129 4.80773 4.71710 4.62990 4.54595 4.46511 4.38721 4.31213 4.23972 1.90909 1.90090 1.89286 1.86957 1.86207 1.85470 2.73554 2.71252 2.69005 2.62571 2.60523 2.58521 3.48685 3.44371 3.40183 3.28323 3.24589 3.20958 4.16987 4.10245 4.03735 3.85498 3.79818 3.74324 5.71346 5.57971 5.45182 5.32948 5.21236 5.10020 4.99271 4.88965 4.79079 4.69590 4.60478 4.35216 4.27429 4.19935 7 6.60143 6.41719 6.24214 6.07569 5.91732 5.76654 5.62288 5.48592 7.47199 7.23028 7.00205 6.78637 6.58238 6.38929 6.20637 6.03295 8.32548 8.01969 7.73274 7.46321 7.20979 6.97130 6.74664 6.53482 9.16224 8.78611 8.43533 8.10782 7.80169 7.51523 7.24689 6.99525 68829 10 11 12 13 5.35526 5.23054 5.11141 4.78448 4.68474 4.58918 5.86842 5.71220 5.56376 5.16042 5.03857 4.92238 6.33493 6.14612 5.96764 5.48732 5.34359 5.20716 6.75902 6.53705 6.32825 5.77158 5.60654 5.45057 9.98259 9.53020 9.11090 8.72173 8.36009 8.02358 7.71008 7.41766 7.14457 6.88923 6.65022 6.01877 5.83323 5.65860 10.78685 10.25262 9.76048 9.30641 8.88687 8.49867 8.13896 7.80519 7.49506 7.20652 6.93770 6.23371 6.02864 5.83641 11.57534 10.95400 10.38507 9.86325 9.38384 8.94269 8.53608 8.16073 7.81369 7.49236 7.19437 6.42062 6.19711 5.98839 14 12.34837 11.63496 10.98565 10.39357 9.85268 9.35765 8.90378 8.48690 8.10336 7.74987 7.42355 6.58315 6.34233 6.11828 15 13.10625 12.29607 11.56312 10.89864 10.29498 9.74547 9.24424 8.78615 8.36669 7.98187 7.62817 6.72448 6.46753 6.22930 =234 16 20 13.84926 12.93794 12.11839 11.37966 10.71225 10.10791 9.55948 9.06069 17 14.57771 13.56110 12.65230 11.83777 11.10590 10.44665 9.85137 9.31256 18 15.29187 14.16612 13.16567 12.27407 11.47726 10.76322 10.12164 9.54363 19 15.99203 14.75351 13.65930 12.68959 11.82760 11.05909 10.37189 9.75563 16.67846 15.32380 14.13394 13.08532 12.15812 11.33560 10.60360 9.95011 67899 25 8.60608 8.19087 7.81086 6.84737 6.57546 6.32419 8.82371 8.37916 7.97399 6.95423 6.66850 6.40529 9.02155 8.54879 8.11963 7.04716 6.74870 6.47461 9.20141 8.70162 8.24967 7.12797 6.81785 6.53385 9.36492 8.83929 8.36578 7.19823 6.87746 6.58449 19.91393 17.93554 16.24696 14.79864 13.55036 12.46933 11.52876 10.70661 9.98474 9.34814 8.78432 7.43377 7.07263 6.74649 30 22.84438 20.18845 17.98371 16.14107 14.59072 13.27767 12.15841 11.19828 10.36961 9.65011 9.02181 7.55088 7.16555 6.82039 35 25.49859 22.13184 19.41120 17.19290 15.36814 13.85401 12.58693 11.51784 10.60857 9.82932 9.15656 7.60910 7.20979 6.85409 40 27.90259 23.80822 20.58448 18.01704 15.94907 14.26493 12.87858 11.72552 10.75696 9.93567 9.23303 7.63805 7.23086 6.86946 TABLE 2 Present Value of an Ordinary Annuity of $1 PVOA = +r)" (n) Periods 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 2 3 16% 17% 0.98039 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 0.86207 0.85470 1.94156 1.91347 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 1.60523 1.58521 2.88388 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710 2.53129 2.48685 2.44371 2.40183 2.28323 2.24589 2.20958 3.80773 3.71710 3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.16987 3.10245 3.03735 2.85498 2.79818 2.74324 5 4.71346 4.57971 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 3.27429 3.19935 4 67820 9 10 11 12 13 14 5.60143 5.41719 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 3.68474 3.58918 6.47199 6.23028 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 4.03857 3.92238 7.32548 7.01969 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 4.34359 4.20716 8.16224 7.78611 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 4.60654 4.45057 8.98259 8.53020 8.11090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 4.83323 4.65860 9.78685 9.25262 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 5.02864 4.83641 10.57534 9.95400 9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 5.19711 4.98839 11.34837 10.63496 9.98565 9.39357 8.85268 8.35765 7.90378 12.10625 11.29607 10.56312 9.89864 9.29498 8.74547 8.24424 15 12.84926 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948 61849 7.48690 7.10336 6.74987 6.42355 5.58315 5.34233 5.11828 7.78615 7.36669 6.98187 6.62817 5.72448 5.46753 5.22930 8.06069 7.60608 7.19087 6.81086 5.84737 5.57546 5.32419 13.57771 12.56110 11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95423 5.66850 5.40529 17 14.29187 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 5.74870 5.47461 14.99203 13.75351 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 5.81785 5.53385 15.67846 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360 8.95011 8.36492 7.83929 7.36578 6.19823 5.87746 5.58449 16.35143 14.87747 13.59033 12.46221 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933 5.92884 5.62777 20 2839 30 35 25 19.52346 17.41315 15.62208 14.09394 12.78336 11.65358 10.67478 9.82258 9.07704 8.42174 7.84314 6.46415 6.09709 5.76623 22.39646 19.60044 17.29203 15.37245 13.76483 12.40904 11.25778 10.27365 9.42691 8.69379 8.05518 6.56598 6.17720 5.82939 24.99862 21.48722 18.66461 16.37419 14.49825 12.94767 11.65457 10.56682 9.64416 8.85524 8.17550 6.61661 6.21534 5.85820 40 27.35548 23.11477 19.79277 17.15909 15.04630 13.33171 11.92461 10.75736 9.77905 8.95105 8.24378 6.64178 6.23350 5.87133 Complete this question by entering your answers in the tabs below. Req 2A Req 2B Req 2C Compute accumulated depreciation and the net book value of the van. (Round intermediate and final answers to the nearest whole dollar amount.) Beginning of Year Annual Cash Flow Year PV of Depreciation Accumulated Year End Book Future Cash Expense Depreciation Value Flows 15,849 20X1 20X2 20X3 20X4 Complete this question by entering your answers in the tabs below. Req 2A Req 2B Req 2C Prepare Zeff's income statement assuming that the $5,000 expected inflows occur. (Round intermediate and final answers to the nearest whole dollar amount.) 20X1 20X2 20X3 20X4 $ 0 $ 0 $ 0 $ 0 Ending investment balance $ 0 $ 0 $ 0 $ 0 Complete this question by entering your answers in the tabs below. Req 2A Req 2B Req 2C Compute the return on beginning net fixed assets. (Round intermediate and final answers to the nearest whole number.) Return on investment 20X1 20X2 20X3 20X4 % % % %