See Uncertain Cash Flows Daily Activity Use the present value tables on pages 670 & 671 Exhibits 120.1 & 128.2 (Ignore income taxes in this problem.) Koala Kody's Eucalyptus Confections uses a discount rate in its capital budgeting of: 16% Partial analysis of an investment in automated equipment with a useful life of 8 years has thus far yielded a net present value of: (87.633) This analysis did not include any estimates of the intangible benefits of automating this process nor did it include any estimate of the salvage value of the equipment. (a) Ignoring any salvage value, how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive? (Round to the nearest dollar.) (b) Ignoring any cash flows from intangible benefits, how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive? (Round to the nearest dollar.) n/ i 1 % 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 18% 20% 25% 30% 1 0.99010 0.98039 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.89286 0.87719 0.86207 0.84746 0.83333 0.80000 0.76923 2 0.98030 0.96117 0.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.79719 0.76947 0.74316 0.71818 0.69444 0.64000 0.59172 30.97059 0.94232 0.91514 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75131 0.71178 0.67497 0.64066 0.60863 0.57870 0.51200 0.45517 4 0.96098 0.92385 0.8849 0.85480 0.82270 0.79209 0.7620 0.73503 0.70843 0.68301 0.63552 0.59208 0.55229 0.51579 0.48225 0.40960 0.35013 5 0.95147 0.90573 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.56743 0.51937 0.47611 0.43711 0.40188 0.32768 0.26933 6 0.94205 0.88797 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.50663 0.45559 0.41044 0.37043 0.33490 0.26214 0.20718 7 0.93272 0.87056 0.81309 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.45235 0.39964 0.35383 0.31393 0.27908 0.20972 0.15937 8 0.92348 0.85349 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.40388 0.35056 0.30503 0.26604 0.23257 0.16777 0.12259 9 0.91434 0.83676 0.76642 0.70259 0.64461 0.59190 0.54393 0.50025 0.46043 0.42410 0.36061 0.30751 0.26295 0.22546 0.19381 0.13422 0.09430 10 0.90529 0.82035 0.74409 0.67556 0.61391 0.55839 0.50835 0.46319 0.42241 0.38554 0.32197 0.26974 0.22668 0.19106 0.16151 0.10737 0.07254 11 0.89632 0.80426 0.72242 0.64958 0.58468 0.52679 0.47509 0.4288 0.38753 0.35049 0.28748 0.23662 0.19542 0.16192 0.13459 0.08590 0.05580 12 0.88745 0.78849 0.701 38 0.62460 0.55684 0.49697 0.44401 0.39711 0.35553 0.31863 0.25668 0.20756 0.16846 0.13722 0.11216 0.06872 0.04292 13 0.87866 0.77303 0.68095 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.22917 0.18207 0.14523 0.11629 0.09346 0.05498 0.03302 14 0.86996 0.75788 0.66112 0.57748 0.50507 0.44230 0.38782 0.34046 0.29925 0.26333 0.20462 0.15971 0.12520 0.09855 0.07789 0.04398 0.02540 15 0.86135 0.74301 0.64186 0.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.18270 0.14010 0.10793 0.08352 0.06491 0.03518 0.01954 16 0.85282 0.72845 0.62317 0.53391 0.45811 0.39365 0.33873 0.29189 0.25187 0.21763 0.163120.12289 0.09304 0.07078 0.05409 0.02815 0.01503 17 0.84438 0.71416 0.60502 0.51337 0.43630 0.37136 0.31657 0.27027 0.23107 0.19784 0.14564 0.10780 0.08021 0.05998 0.04507 0.02252 0.01156 18 0.83602 0.70016 0.58739 0.49363 0.41552 0.35034 0.29586 0.25025 0.21199 0.17986 0.13004 0.09456 0.06914 0.05083 0.03756 0.01801 0.00889 19 0.82774 0.68643 0.57029 0.47464 0.39573 0.33051 0.27651 0.23171 0.19449 0.16351 0.11611 0.08295 0.05139 0.04308 0.03130 0.01441 0.00684 20 0.81954 0.67297 0.55368 0.4569 0.37689 0.3110 0.25842 0.21455 0.178430.14864 0.10367 0.0726 0.05139 0.03651 0.02608 0.01153 0.005 26 21 0.81143 0.65978 0.53755 0.43883 0.35894 0.29416 0.24151 0.19866 0.16370 0.13513 0.09256 0.06383 0.04430 0.03094 0.02174 0.00922 0.00405 22 0.80340 0.64684 0.5219 0.4216 0.34185 0.27751 0.22571 0.18394 0.15018 0.12285 0.08264 0.05599 0.03819 0.02622 0.01811 0.00738 0.00311 23 0.79544 0.63416 0.50669 0.40573 0.32557 0.26180 0.21095 0.17032 0.13778 0.11168 0.07379 0.04911 0.03292 0.02222 0.01509 0.00590 0.00239 24 0.78757 0.62172 0.49193 0.39012 0.31007 0.24698 0.19715 0.15770 0.12640 0.10153 0.06588 0.04308 0.02838 0.0183 0.01258 0.00472 0.00 184 25 0.77977 0.60953 0.47761 0.37512 0.29530 0.23300 0.18425 0.14602 0.11597 0.09230 0.05882 0.03779 0.02447 0.01596 0.01048 0.00378 0.00142 26 077205 0.59758 0.46369 0.36069 0.28124 0.21981 0.17220 0.13520 0.10639 0.08391 0.05252 0.03315 27 0.76440 0.58586 0.45019 0.34682 026785 0.20737 0.16093 0.12519 0.09761 0.07628 0.04689 0.02908 0.01818 0.01146 0.00728 0.00242 0.00084 28 0.75684 0.57437 0.43708 0.33348 0.25509 0.19563 0.15040 0.11591 0.08955 0.06934 0.04187 0.02551 0.01567 0.00971 0.00607 0.00193 0.00065 29 0.74934 0.56311 0.42435 0.32065 0.24295 0.18456 0.14056 0.10733 0.08215 0.06304 0.03738 0.02237 0.01351 0.00823 0.00506 0.00155 0.00050 30 0.74192 0.55207 0.41199 0.30832 0.23138 0.17411 0.13137 0.09938 0.07537 0.05731 0.03338 0.01963 0.01165 0.00697 0.00421 0.00124 0.00038 i 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 18% 20% 25% 30% 1 0.99010 0.98039 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.89286 0.87719 0.86207 0.84746 0.83333 0.80000 0.76923 2 1.97040 1.94156 1.91347 1.88609 1.85941 1.83339 1.80802 1.78326 1.759111.73554 1.69005 1.64666 1.60523 1.56564 1.52778 1.44000 1.36095 3 2.94099 2.8388 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710 2.531292.48685 2.40183 2.32163 2.24589 2.17427 2.10648 1.95200 1.81611 4 3.90197 3.80773 3.71710 3.62990 3.54595 3.46511 3.38721 3.312133.239723.16987 3.03735 2.91371 2.79818 2.69006 2.58873 2.36160 2.16624 5 4.85343 4.71346 4.57971 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.60478 3.43308 3.27429 3.12717 2.99061 2.68928 2.43557 6 5.79548 5.60143 5.41719 5.24214 5.07569 4.91732 4.76654 4.62288 4.48592 4.35526 4.11141 3.88867 3.68474 3.49760 3.32551 2.95142 2.64275 7 6.72819 6.47199 6.23028 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.56376 4.28830 4.03857 3.81153 3.60459 3.16114 2.80211 8 7.65168 7.32548 7.01969 673274 6.46321 6.20979 5.97130 5.74664 5.534825.33493 4.96764 4.63886 4.34359 4.07757 3.83716 3.32891 2.92470 9 8.56602 8.16224 7.78611 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.32825 4.94637 4.60654 4.30302 4.03097 3.46313 3.01900 10 9.47130 8.98259 8.53020 8.11090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.65022 5.21612 4.83323 4.49409 4.19247 3.57050 3.09154 11 10.36763 9.78685 9.25262 8.76048 8.30641 7.88687 7.49867 7.13896 6.805196.49506 5.93770 5.45273 5.02864 4.65601 4.32706 3.65640 3.14734 12 11.25508 10.57534 9.95400 9.38507 8.86325 8.38384 7.94269 7.53608 7.160736.81369 6.19437 5.66029 5.19711 4.79322 4.43922 3.72512 3.19026 13 12.1337411.34837 10.63496 9.98565 9.39357 8.85268 8.35765 7.90378 7.486907.10336 6.42355 5.84236 5.34233 4.90951 4.53268 3.78010 3.22328 14 13.00370 12.10625 11.29607 10.56312 9.89864 9.29498 8.74547 8.24424 7.786157.36669 6.62817 6.00207 5.46753 5.00806 4.61057 3.82408 3.24867 15 13.86505 12.84926 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948 8.060697.60608 6.81086 6.14217 5.57546 5.09158 4.67547 3.85926 3.26821 16 14.71787 13.5777112.56110 11.65230 10.83777 10.10590 9.44665 8.85137 8.312567.82371 6.97399 6.26506 5.66850 5.16235 4.72956 3.88741 3.28324 17 15.56225 14.2918713.1661212.1656711.27407 10.47726 9.76322 9.12164 8.543638.02155 7.11963 6.37286 5.74870 5.22233 4.77463 3.90993 3.29480 18 16.39827 14.99203 13.75351 12.65930 11.68959 10.82760 10.05909 9.37189 8.755638.20141 7.24967 6.46742 5.81785 5.27316 4.81219 3.92794 3.30369 19 17.22601 15.67846 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360 8.950118.36492 7.36578 6.55037 5.87746 5.31624 4.84350 3.94235 3.31053 20 18.04555 16.35143 14.87747 13.59033 12.4622111.46992 10.59401 9.81815 9.128558.51356 7.46944 6.62313 5.92884 5.35275 4.86958 3.95388 3.31579 21 18.85698 17.01121 15.41502 14.0291612.82115 11.76408 10.83553 10.01680 9.292248.64869 7.56200 6.68696 5.97314 5.38368 4.89132 3.96311 3.31984 22 19.66038 17.65805 15.93692 14.4511213.16300 12.04158 11.06124 10.20074 9.442438.77154 7.64465 6.74294 6.01133 5.40990 4.90943 3.97049 3.32296 20.455821829220 16.44361 14.85684 13.4885712.30338 11.2721910.37106 9.580218.883227.718436.79206 6.044255.43212 4.224533.97693.32535 24 21.24339 18.91393 16.93554 15.24696 13.79864 12.55036 11.46933 10.52876 9.706618.98474 7.78432 6.83514 6.07263 5.45095 4.93710 3.98111 3.32719 25 22.02316 19.52346 17.41315 15.62208 14.09394 12.78336 11.65358 10.67478 9.822589.07704 7.84314 6.87293 6.09709 5.46691 4.94759 3.98489 3.32861 26 22.79520 20.12104 17.87684 15.9827714.3751913.0031711.82578 10.80998 9.928979.16095 7.89566 6.90608 6.11818 5.48043 4.95632 3.98791 3.32970 27 23.55961 20.70690 18.3270316.32959 14.64303 13.2105311.98671 10.93516 10.026589.23722 7.94255 6.93515 6.13636 5.49189 4.96360 3.99033 3.33054 28 24.31644 21.28127 18.76411 16.66306 14.8981313.4061612.1371111.05108 10.116139.306577.98442 6.96066 6.15204 5.50160 4.96967 3.99226 3.33118 29 25.06579 21.84438 19.18845 16.98371 15.14107 13.59072 12.27767 11.15841 10.198289.36961 8.02181 6.98304 6.16555 5.50983 4.97472 3.99381 3.33168 80 25.80771 22.39646 19.60044 17.29203 15.37245 13.76483 12.40904 11.25778 10.273659.42691 8.05518 7.00266 6.17720 5.51681 4.97894 3.99505 3.33206