Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $300,000 and to have a six-year life and no salvage value. The equipment is expected to generate income of $12,939 and net cash flow of $62,939 in each year of its six-year life. Santana requires an 8% return on all investments. (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use oppropriate factor(s) from the tables provided.) (Negative net present values should be indicated with a minus sign. Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole number.) Required: 1-a. Compute the payback period for this equipment. 1-b. Compute the net present value for this equipment. 1-c. Compute internal rate of return for this equipment 2. If Santana requires investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 8% internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 1C Req 2 and 3 Compute the payback period for this equipment. Numerator: Payback Period Denominator: Payback period Reg 1A Req 1B > Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 2 and 3 Compute the net present value for this equipment. (Negative values must be entered as a negative number.) Net Cash Flows Present Value of Annuity at 8% Present Value of Net Cash Flows Years 1-6 Net present value < Req 1A Req 1C > Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 1C Req 2 and 3 Compute internal rate of return for this equipment. Present Value Factor Numerator: 1 Periods (p)= Internal Rate of Return Denominator: Present Value Factor < Req 18 Req 2 and 3 > Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 1C Req 2 and 3 2. If Santana requires investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 8% internal rate of return, should she invest in this equipment? 2. If Santana requires investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 8% internal rate of return, should she invest in this equipment? < Req 1C Reg 2 and 3> Rate Periods 1% 296 3% 4% 5% 6% 7% 8% 996 10% 12% 15% Periods 1 0.9901 0.9804 09709 09615 0.9524 0.9434 0.9346 0.9259 09174 0.9091 0.8929 0.8696 1 2 0.9803 0.9612 09426 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.7972 0.7561 2 3 0.9706 0.9423 0.9151 0.8890 0.8638 08396 0.8163 0.7938 0.7722 0.7513 0.7118 0.6575 3 4 09610 0.9238 0.8885 0.8548 0.8227 0.7921 5 0.9515 09057 0.8626 0.8219 0.7835 6 0.9420 0.8880 0.8375 0.7903 0.7462 7 0.9327 0.8706 0.8131 0.7599 0.7107 B 09235 08535 0.7894 0.7307 0.6768 9 0.9143 0.8368 0.7664 0.7026 0.6446 10 0.9053 05203 0.7441 0.6756 0.6139 0.5584 11 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 13 08787 0.7730 0.6810 0.6006 0.5303 0.4688 14 0.$700 0.7579 0.6611 0.5775 0.5051 0.4423 15 0.5613 0.7430 0.6419 0.5553 0.4810 0.4173 03624 0.7629 0.7130 0.7473 0.7050 0.6663 0.6302 0.6651 0.6227 0.5835 0.5470 0.5132 0.6274 0.5820 0.5019 0.5403 0.5919 0.5439 0.5002 0.4604 0.5083 0.4632 0.4224 0.4751 0.4289 0.3875 0.4440 0.3971 0.3555 0.4150 0.3677 0.3262 0.3878 0.3405 0.2992 0.3152 0.2745 0.7350 0.7084 0.6830 0.6355 0.5718 4 0.6806 0.6499 0.6209 0.5674 0.4972 5 0.5963 0.5645 05066 0.4323 6 0.4523 0.3759 7 16 0.8528 0.7284 06232 0.5339 0.4581 0.3936 0.3387 17 03444 0.7142 0.6050 0.5134 0.4363 03714 0.3166 15 08360 0.7002 0.5874 0.4936 19 0.3277 0.6864 20 08195 0.6730 0.5703 0.4746 0.5537 0.4155 0.3957 0.3503 0.2959 25 0.7798 0.6095 04776 0.3751 0.4564 03769 0.2953 30 0.7419 0.5521 0.4120 03053 0.2314 35 0.7059 0.5000 03554 40 06717 0.4529 03066 02534 01813 0.2083 0.1420 0.3305 03118 0.2330 0.1741 01301 00972 0.4665 0,4039 0.4241 0.3606 0.3855 03220 0.3505 0.2875 0.2149 03186 0.2567 0.1869 0.2897 0.2292 0.1625 0.2633 0.2046 0.1413 0.2394 0.1827 0.1229 0.2919 0.2519 0.2176 0.1631 0.1069 0.2703 0.2311 0.1978 0.1456 0.0929 02502 0.2120 0.1799 0.1300 0.0508 0.2765 02317 0.1945 01635 0.2584 0.2145 0.1784 0.1842 01460 0.1160 0.0923 0.1314 0.0994 0.0754 0.0573 00937 0.0676 00490 0.0356 0.0665 00460 0.0318 0.0221 0.3269 $ 0.2843 9 0.2472 10 11 12 13 14 15 16 17 15 0.1161 0.0703 19 0.1456 0.1037 0.0611 20 00588 0.0304 25 0.0334 0.0151 30 0.0189 0.0075 35 00107 0.0037 40 "Ubed to compute the present value of a known fiture amount. For example How much would you need to invest today at 10% compounded semiannually to accumulate $5,000 in 6 years from toda 1-0+0" Rate Periods 196 29 30 4% 5% 6% 796 8% 996 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 I 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 10201 1.0404 1.0609 1.0816 1.1025 1.1236 1.1449 3 10303 1.0612 1.0927 1.1249 1.1576 1.1910 1.1664 1.1881 1.2100 1.2250 1.2597 1.2950 1.3310 1.4049 1.2544 1.3225 2 1.5209 3 4 1.0406 1.0824 1.1255 1.1699 1.2155 1.2625 1.0510 11041 1.1593 1.2167 1.2763 1.3382 6 1.0615 1.1262 1.1941 1.2653 1.3401 1.4185 7 1.0721 1.1487 1.2299 1.3159 1.4071 1.5036 8 1.0829 1.1717 1.2668 1.3686 14775 1.5938 9 1.0937 1.1951 1.3048 1.4233 1.5513 10 1.1046 12190 1.3439 1.4802 1.6289 11 1.1157 1.2434 1.3842 1.5395 1.7103 12 1.1268 12682 1.4258 1.6010 1.7959 13 1.1381 1.2936 1.8556 14 1.1495 13195 15 1.1610 1.3459 16 11726 17 1.1843 18 1.1961 19 1.2081 20 25 1.2834 16406 30 1.3478 35 14166 1.9999 40 1.4889 2.2080 28139 3.9461 3.2620 48010 1.4026 1.4693 1.5007 1.5869 1.6058 1.7138 1.7182 18509 1.6895 1.8385 1.9990 21719 2.3579 2.7731 1.7908 1.9672 2.1589 2.3674 2.5937 3.1058 1.8983 21049 2.3316 2.5804 2.8531 34785 4.6524 2.0122 22522 25182 28127 3.1384 3.8960 5.3503 1.4685 1.6651 2.1329 2.4098 2.7196 3.0658 3.4523 4.3635 6.1528 15126 1.7317 19799 2.2609 2.5785 29372 3.3417 3.7975 4.8871 7.0757 1.5580 1.8009 20759 2.3966 2.7590 31722 3.6425 4.1772 54736 1.3728 1.6047 1.8730 2.1829 2.5404 2.9522 3.4259 3.9703 4.5950 6.1304 14002 1.6528 1.9479 2.2920 2.6928 3.1588 3.7000 4.3276 5.0545 6.8660 14282 1.7024 20258 24066 2.8543 3.3799 3.9960 4.7171 5.5599 7.6900 12.3755 1.4568 1.7535 2.1068 2.5270 3.0256 3.6165 43157 51417 6.1159 8.6128 14.2318 12202 14859 1.8061 2.1911 2.6533 3.2071 3.8697 46610 5.6044 6.7275 96463 16.3665 2.0938 2.6658 3.3864 4.2919 5.4274 6.8485 8.6231 10.8347 17.0001 32.9190 1.8114 24273 3.2434 43219 5.7435 7.6123 10.0627 13.2677 174494 29.9599 66.2118 5.5160 7.6861 10.6766 14.7853 20.4140 28.1024 52.7996 133.1755 7.0400 10.2557 14.9745 21.7245 314094 452593 93.0510 267,9635 1.3108 1.3605 1.4116 1.4641 1.5735 1.5386 1.6105 1.7623 1.6771 1.7716 1.9738 2.3131 1.8280 1.9487 2.2107 2.6600 1.9926 2.1436 24760 3.0590 1.7490 4 2.0114 5 6 7 8 3.5179 9 4.0456 10 11 12 13 14 8.1371 15 9.3576 16 10.7613 17 18 19 20 25 30 35 40 Table B.3-Present Value of an Annuity of 1 p-11-1/3+03 Rate Periods 1% 296 396 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 0.9174 0.9091 0.8929 0.8696 1 2 1.9704 1.9416 1.9135 1.8861 1.8594 1.8334 1.8080 1.7833 1.7591 1.7355 1.6901 1.6257 2 3 2.9410 2.8839 2.8286 2.7751 2.7232 26730 2.6243 2.5771 2.5313 2.4869 2.4018 2.2832 3 4 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 5 4.8534 4.7135 4.5797 4.4518 4.3295 4.2124 4.1002 6 5.7955 5.6014 5.4172 5.2421 5.0757 4.9173 4.7665 7 6.7282 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 $ 7.6517 7.3255 7.0197 6.7327 6.4632 62098 5.9713 5.7466 9 8.5660 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 10 9.4713 8.9826 8.5302 8.1109 7,7217 7.3601 7.0236 11 10.3676 9.7568 9.2526 8.7605 8.3064 7.8869 7.4987 6.2469 59952 6.7101 6.4177 7.1390 6.8052 12 11.2551 10.5753 13 12.1337 11.34841 14 13.0037 12.1062 9.9540 9.3851 10.6350 11.2961 10.5631 9.8986 8.8633 8.3838 7.9427 7.5361 7.1607 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 3.1699 3.9927 3.8897 3.7908 3.6048 4.6229 4.4859 4.3553 4.1114 5.0330 4.8684 5.5348 5.3349 5.7590 5.3282 4.7716 6.1446 5.6502 5.0188 6.4951 5.9377 5.2337 6.8137 7.1034 3.0373 2.8550 4 3.3522 5 3.7845 6 4.5638 4.1604 7 4.9676 4.4873 8 9 10 11 6.1944 5.4206 12 9.2950 8.7455 8.2442 15 13.8651 12.8493 11.9379 11.1184 10.3797 9.7122 9.1079 8.5595 8.0607 7.6061 6.4235 5.5831 7.7862 7.3667 6.6282 5.7245 6.8109 13 14 5.8474 15 16 14.7179 17 15 19 14.3238 13.1339 20 18.0456 16.3514 14.8775 13.5903 25 30 22.0232 19.5235 174131 15.6221 25.5077 22.3965 19.6004 17.2920 35 29.4056 24.9986 21.4872 40 32.8347 27.3555 23.1145 13.5777 12.56111 11.6523 10.8378 15.5623 14.2919 13.1661 12.1657 11.2741 163983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 17.2260 15.6785 12.0853 11.1581 10.3356 12.4622 11.4699 10.5940 14.0939 12.7834 11.6536 13.7648 144982 15.0463 10.1059 9.4466 $8514 8.3126 78237 6.9740 5.9542 16 10.4773 9.7632 9.1216 8.5436 8.0216 7.1196 6.0472 17 18.6646 15.3725 16.3742 19.7928 17.1591 9.3719 8.7556 8.2014 9.6036 89501 8.3649 7.3658 981811 9.1285 8.5136 74694 10.6748 9.8226 9.0770 7.8431 12.4090 11.2578 10.2737 9.4269 8.0552 6.5660 12.9477 11.6546 10.5668 9.6442 8.1755 6.6166 13,3317 11.9246 10.7574 9.7791 72497 6.1280 18 6.1982 19 62593 20 6.4641 25 30 35 8.2438 6.6418 40 Table B.4 Future Value of an Annnity of 1 S-+-13 Rate Periods 196 29 3% 4% 5% 6% 796 8% 996 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 1 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 3.1216 3.1525 3.1836 3.2149 3.2464 3.2781 3.3100 3.3744 3.4725 3 4 4.0604 4.1216 4.1836 4.2465 4.3101 4.3746 4.4399 4.5061 4.5731 4.6410 4.7793 4.9934 4 5 5.1010 5.2040 5.3091 54163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.3528 6.7424 5 6 6.1520 6.3081 6.4684 6.6330 6.8019 6.9753 7.1533 7.3359 7.5233 7.7156 8.1152 8.7537 6 7 7.2135 7.4343 7.6625 7.8983 8 8.2857 8.5830 8.8923 9.2142 9 9.3685 9.7546 10.1591 10.5828 11.0266 10 10.4622 10.9497 11.4639 12.0061 12.5779 11 11.5668 12.1657 12.8078 13.4864 14.2068 8.1420 8.3938 9.5491 9.8975 11.4913 13.1808 14.9716 12 12.6825 13.4121 14.1920 15.0258 15.9171 16.8699 13 13.8093 14.6803 15.6178 16.6268 17.7130 18.8821 20.1406 18.9771 21.4953 20.1407 22.9534 14 14.9474 15.9739 17.0863 18.2919 19.5986 21.0151 22.5505 15 16 17.2579 18.6393 17 18.4304 16.0969 17.2934 18.5989 20.1569 20.0121 21.7616 20.0236 21.5786 23.2760 25.1290 21.8245 23.6575 25 6725 27.8881 23.6975 25.8404 28.2129 18 19.6147 21.4123 23.4144 25 6454 19 20.5109 22.8406 25.1169 27.6712 28.1324 30 5390 30.9057 33.7600 20 22.0190 24 2974 26.8704 29.7781 33.0660 36.7856 25 28.2432 30 34.7849 32.0303 36.4593 40.5681 47.5754 416459 47.7271 54.8645 63.2490 35 41.6603 40 56.0849 66.4388 79.0582 49.9945 60.4621 73.6522 90.3203 111.4348 48.5864 60.4020 75.4013 95.0255 120.7998 154.7620 94.4608 138 2369 199.6351 8.6540 8.9228 9.2004 9.4872 10.2598 10.6366 11.0285 11.4359 12.2997 11.9780. 12.4876 13.0210 13.5795 14.7757 13.8164 14.4866 15.1929 15.9374 17.5487 15.7836 16.6455 17.5603 18.5312 20.6546 17.8885 21.3843 24.1331 24.5227 28.0291 24.2149 26.0192 27.9730 32.3926 27.1521 29.3609 31.7725 37.2797 303243 33.0034 35.9497 42.7533 55.7175 30.8402 33.7502 36.9737 40.5447 48.8837 65.0751 33.9990 37.4502 41.3013 45.3992 55.7497 75.8364 37.3790 41.4463 46.0185 51.1591 40.9955 45.7620 51.1601 73 1059 $4.7009 98.3471 113.2832 136.3075 164.4940 172.3168 215.7108 271.0244 431 6635 259.0565 337,8824 442.5926 767.0914 10.0890 11.0668 7 13.7268 16.7858 9 20.3037 10 24.3493 11 29.0017 12 34.3519 13 40,5047 14 47.5804 15 16 17633 18 63.4397 88 2118 19 57.2750 72.0524 102.4436 20 133 3339 212.7930 25 241 3327 434.7451 30 $81.1702 1.779.0903 40 35