S26-15 (similar to) Question Help Bradford Company is considering an investment opportunity with the following expected net cash inflows: Year 1, $250,000; Year 2, $175,000; Year 3, $95,000. The company uses a discount rate of 7% and the initial investment is $360,000. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Calculate the NPV of the investment. Should the company invest in the project? Why or why not? Use the following table to calculate the net present value of the project. (Enter any factor amounts to three decimal places, X.XXX.) Years Net Cash Inflow PV Factor (i = 7%) Present Value Year 1 Present value of each year's inflow: (n = 1) Year 2 Present value of each year's inflow: (n = 2) Year 3 Present value of each year's inflow: (n = 3) Total PV of cash inflows Year 0 Initial investment Net present value of the project S26-15 (similar to) 1 Reference Present Value of $1 1% 5% 7% 0.935 0.873 0.816 0.763 0.713 8% 0.926 0.857 0.794 0.735 0.681 9% 10% 12% 14% 15% 16% 18% 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.8420.826 0.797 0.769 0.756 0.743 0.718 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.650 0.621 0.567 0.519 0.497 0.476 0.437 20% 0.833 0.694 0.579 0.482 0.402 0.666 0.623 0.582 0.544 0.508 0.630 0.583 0.540 0.500 0.463 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.5470.513 0.452 0.400 0.376 0.354 0.314 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.335 0.279 0.233 0.194 0.162 0.475 0.444 0.415 0.388 0.362 0.429 0.397 0.368 0.340 0.315 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.3260.290 0.229 0.182 0.163 0.145 0.116 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.135 0.112 0.093 0.078 0.065 Periods 2% 3% 4% 6% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 Period 3 0.971 0.942 0.915 0.8890.864 0.840 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 Period 11 0.896 0.8040.7220.650 0.585 0.527 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 Period 21 0.811 0.660 0.538 0.439 0.359 0.294 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 Period 23 0.795 0.634 0.507 0.406 0.326 0.262 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 Period 26 0.772 0.598 0.464 0.361 0.281 0.220 Period 27 0.764 0.586 0.450 0.347 0.268 0.207 Period 28 0.757 0.574 0.437 0.333 0.255 0.196 Period 29 0.7490.563 0.424 0.321 0.243 0.185 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 Period 40 0.672 0,453 0.307 0.208 0.142 0.097 Period 50 0.608 0.372 0.228 0.141 0.087 0.054 0.339 0.317 0.296 0.277 0.258 0.054 0.045 0.038 0.031 0.026 0.242 0.226 0.211 0.197 0.184 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.250 0.212 0.180 0.130 0.095 0,081 0.069 0.051 0.232 0.194 0.164 0.116 0.083 0.070 | 0.060 0.043 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.199 0.1640.135 0.093 0.064 0.053 0.044 0.031 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.170 0.138 0.112 0.074 0.049 0.040 | 0.033 0.022 0.158 0.126 0.1020.066 0.043 0.035 0.028 0.019 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.135 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.125 0.098 0.076 0.047 0.029 0.023 0.0180.011 0.116 0.090 | 0.069 0.042 0.026 0.020 | 0.016 0.010 0.107 0.082 0.063 0.037 0.022 0.017 0.014 0.008 0.099 0.075 0.057 0.033 0.020 0.015 0.012 0.007 0.022 0.018 0.015 0.013 0.010 0.009 0.007 0.006 0.005 0.004 0.172 0.161 0.150 0.141 0.131 0.067 0.046 0.032 0.022 0.011 0.005 0.004 0.003 0.001 0.001 0.034 0.021 0.0130.009 0.003 0.001 0.001 0.001 S26-15 (similar to) Reference 3% 7% 16% 1% 2% 0.990 0.980 1.970 1.942 2.941 2.884 3.902 3.808 4.853 4.713 5.795 5.601 6.728 6.472 7.652 7.325 8.566 8.162 9.471 8.983 0.971 1.913 2.829 3.717 4.580 Present Value of Ordinary Annuity of $1 4% 5% 6% 8% 9% 10% 12% 14% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 3.630 3.546 3.465 3.387 3.3123.240 3.170 3.037 2.914 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 15% 0.870 1.626 2.283 2.855 3.352 0.862 1.605 2.246 2.798 3.274 18% 20% 0.847 0.833 1.566 1.528 2.174 2.106 2.690 2.589 3.127 2.991 5.417 6.230 7.020 7.786 8.530 5.242 5.076 4.917 4.767 6.002 5.786 5.582 5.389 6.733 6.463 6.210 5.971 7.435 7.108 6.802 6.515 8.111 7.722 7.360 7.024 4.623 4.486 4.355 4.111 5.206 5.033 4.868 4.564 5.747 5.535 5.335 4.968 6.247 5.995 5.759 5.328 6.710 6.418 6.145 5.650 3.889 4.288 4.639 4.946 5.216 3.784 4. 160 4.487 4.772 5.019 3.685 4.039 4.344 4.607 4.833 3.498 3.326 3.812 3.605 4.078 3.837 4.303 4.031 4.494 4.192 10.368 9.787 9.253 8.760 8.306 7.887 7.499 11.255 10.575 9.954 9.385 8.863 8.384 7.943 12.134 11.348 10.635 9.986 9.394 8.853 8.358 13.004 12.106 | 11.296 | 10.563 9.899 9.295 8.745 13.865 12.849 | 11.938 11.118 10.380 9.712 9.108 7.139 6.805 6.495 5.938 7.5367.161 | 6.814 6.194 7.9047.487 7.103 6.424 8.2447.786 7.367 6.628 8.559 8.061 7.606 6.811 5.453 5.234 5.660 5.421 5.8425.583 6.002 5.724 6.142 5.847 5.029 4.656 4.327 5.197 4.793 4.439 5.342 4.910 4.533 5.468 5.008 4.611 5.575 5.092 4.675 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Period 26 Period 27 Period 28 Period 29 Period 30 Period 40 Period 50 5.954 6.047 6.128 6.198 6.259 5.669 5.162 4.730 5.749 5.222 4.775 5.818 5.273 4.812 5.877 5.316 4.844 5.929 | 5.353 4.870 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 15.562 14.292 13.166 12.166 11.27410.4771 9.763 9.122 8.544 8.022 7.120 6.373 16.398 14.992 13.754 12.659 11.690 10.828 10.0599.372 8.756 8.201 7.250 6.467 17.226 15.678 14.324 | 13.134 12.085|11.158 10.336 9.604 8.950 8.365 7.366 6.550 18.046 16.351 14.877 13.590 12.462 11.470 10.5949.818 9.129 8.514 7.469 6.623 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.0179.292 8.649 7.562 6.687 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.2019.442 8.772 7.645 6.743 20.456 18.292 16.444 14.857 13.48912.303 11.272 10.371 9.5808.883 7.718 6.792 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.7078.985 7.784 6.835 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.8239.077 7-843 6.873 22.795 20.121 17.87715.983 14.375 13.003) 11.826 10.810 9.929 9.1617.896 6.906 23.560 20.707 18.327 | 16.330 14.64313.211 11.987 10.935 10.027 9.237 7.943 6.935 24.316 21.28118.764 16.663 14.89813.406 12.137 11.051 10.116 9.307 7.984 6.961 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.022 6.983 25.80822.396 19.600 17.292 15.372 13.765 12.409 11 258 10.274 9.4278.055 7.003 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.244 7.105 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 8.304 7.133 6.312 6.359 6.399 6.434 6.464 5.973 6.011 6.044 6.073 6.097 5.384 4.891 5.410 4.909 5.432 4.925 5.451 4.937 5.467 4.948 6.491 6.514 6.534 6.551 6.566 6.118 6.136 6.152 6.166 6.177 5.480 4.956 5.492 4.964 5.5024.970 5.510 4.975 5.517 4.979 6.642 6.233 5.548 4.997 6.661 6.246 5.554 4.999