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Sheridan Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $195,205 and have an estimated useful life

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Sheridan Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $195,205 and have an estimated useful life of 10 years. It can be sold for $69,500 at the end of that time. (Amusement parks nced to rotate exhibits to keep people interested.) it is expected to increase net annual cash flows by $26,700. The compary's borrowing rate is 8%. Its cost of capital is 10%. Click here to view the factor table. Calculate the net present vatue of this project fo the company and determine whether the project is acceptable. If the net present value is negative, use either a negative sign preceding the number es 45 or parentheses es (45). For calculation purposes, use 5 decimal places as displayed in the foctor table provided. Round present value answer to 0 decimal places, es. 125.) Net present value $ The project TABLE 1 Future Value of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (ni) \\ Periods \end{tabular} & 4N & 5% & 6% & 76 & 8% & 9% & 105 & 11% & 12% & 15% \\ \hline 0 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 \\ \hline 1 & 1.04000 & 1.05000 & 1,06000 & 107000 & 1.08000 & 1,09000 & 1.10000 & 1.11000 & I. 12000 & 1.15000 \\ \hline 2 & 1.04160 & 1.10250 & 1.12360 & 1.14490 & 1.16040 & 1.18810 & 1.21000 & 123210 & 1,25440 & 1.32250 \\ \hline 3 & 1.124%6 & 1.15763 & 1.19102 & 1.22504 & 125971 & 129503 & 1.33100 & 1.36763 & 1.40493 & 1.520as \\ \hline 4 & 1.16956 & 1.21551 & 1.26244 & 131050 & 136049 & 1,41158 & 1.46410 & 151807 & 1.57352 & 1:74901 \\ \hline 5 & 1.21665 & 127628 & 133823 & 1.40255 & 1.6693 & 153862 & 1.61051 & 1.68506 & 176214 & 201136 \\ \hline 6 & 1.26532 & 1.4010 & 1.41852 & 1,50071 & 1.58687 & 1.67710 & 1.77156 & 1.87041 & 1.97382 & 2.31900 \\ \hline 7 & 1.31593 & 1.40710 & 1.50361 & 1.00578 & 1.71382 & 1.82004 & 1.94572 & 2.07616 & 2.21064 & 2.60002 \\ \hline 8 & 1,36857 & 1.47746 & Isviss & 1,71819 & 1.85003 & 1.90256 & 2.14359 & 2.30+54 & 2.47596 & \\ \hline 9 & 1.42331 & issi33 & 168944 & 183546 & 1.90000 & 2.17180 & 2.35795 & 2.55801 & 2.7730 s & isitis \\ \hline 10 & 1+4n024 & 1.62849 & 170085 & 1,96715 & 2.15892 & 2,16736 & 2.5937 & 2.83942 & 3.10585 & 404556 \\ \hline 11 & I.53945 & 1.71014 & 1 x9430 & 2.0485 & 233164 & 2.53043 & 2.43312 & 3.15176 & Ju28ss & 405239 \\ \hline 12 & I.60103 & 179586 & 201220 & 2.25219 & 251817 & 2.1126? & 3.13543 & 3.49845 & 1.59598 & 5.35025 \\ \hline 13 & 1.66507 & 1.88565 & 2.13293 & 2.400ks & 2.71062 & 3.06581 & 3.45227 & 3.83328 & 436349 & 6.15279 \\ \hline 14 & 1,73168 & 1.97943 & 2.26000 & 2.57$53 & 203719 & 3.34173 & 3.70750 & 4.31044 & 4.86711 & 7.07371 \\ \hline 15 & 1.00094 & 2.07893 & 2.19656 & 2.7503 & 3.17217 & 364248 & 4.17725 & 4.75459 & 5.47357 & 813700 \\ \hline 16 & 11+7293 & 2:18257 & 2.54035 & 295210 & 3.42594 & -3.97031 & 4.59497 & 5.31089 & 6.13019 & 935762 \\ \hline 17 & 1.94790 & 2.29202 & 2.69277 & 3.1582 & 3.70002 & 4.12763 & 5.05447 & 5.89509 & 6.86004 & 10.76126 \\ \hline is & 202582 & 2.40662 & 2.85a3 & 3.37993 & 3.99602 & 4.71712 & 5.55992 & 6.54355 & 7.68997 & 12.37545 \\ \hline 19 & 2.10655 & 2.52695 & 3.02560 & 3.01653 & 431570 & 3.14166 & 6.11591 & 226334 & 5.61276 & 1423172 \\ \hline 20 & 2.19112 & 2.05330 & 3.20714 & 3.86968 & 4.66096 & 5.60+41 & 6.72750 & 8.06231 & 964629 & 16.36654 \\ \hline \end{tabular} TABLE 2 Future Value of an Annuity of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline (n) & & & & & & & & & & \\ \hline Payments & 45 & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 125 & 15% \\ \hline 1 & 1.00000 & 1,00000 & 1.00000 & 1.0000 & 1,00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 \\ \hline 2 & 2.04000 & 205000 & 2.06000 & 2.0700 & 2.08000 & 2.09000 & 2.10000 & 2.11000 & 2.12000 & 2.15000 \\ \hline 3 & 3.12160 & 3.15250 & 3.18360 & 3.2149 & 3,24640 & 3.27810 & 3. 31000 & 3.34210 & 3.37440 & 3.47250 \\ \hline 4 & 4,24646 & 4.31013 & 437462 & 4.4390 & 4.50611 & 4.57313 & 4.64100 & 4,70973 & 4.77933 & 4.99338 \\ \hline 5 & 5.41632 & 5.52563 & 5.63700 & 5.7507 & 5.86660 & 5.98471 & 6.10510 & 6.22780 & 6.35285 & 6.74238 \\ \hline 6 & 0.63298 & 6.80191 & 6.97532 & 7.1533 & 733592 & 7,52334 & 7.71561 & 7.91286 & 8.11519 & 8.75374 \\ \hline 7 & 7.89829 & 8.14201 & 8. 39384 & 8.6540 & 8.92280 & 9.20044 & 9.48717 & 9.78327 & 10.08901 & 11,06680 \\ \hline 8 & 9.21423 & 9.54911 & 9.89747 & 10.2598 & 10.63663 & 11.02847 & 11.43589 & 11.85943 & 12.29969 & 13.72082 \\ \hline 9 & 1058280 & 11.02656 & 11.49132 & 11.9780 & 12.48756 & 13.02104 & 13.57948 & 14.16397 & 14,77566 & 16.78584 \\ \hline 10 & 12.00611 & 12.57789 & 13.18079 & 138164 & 14.48656 & 15.19203 & 15.93743 & 16.72201 & 17.54874 & 20.30372 \\ \hline 11 & 13.48635 & 14.20679 & 14.97164 & 15,7836 & 16.64549 & 17.56029 & 18,53117 & 19.56143 & 20.65458 & 24.34928 \\ \hline 12 & 15.02581 & 15.91713 & 16.86994 & 17.8885 & 18.97713 & 20.14072 & 21.38428 & 22.71319 & 24.13313 & 29.00167 \\ \hline 13 & 16.62684 & 17.71298 & 18.88214 & 20.1406 & 21.49530 & 22.95339 & 24.52271 & 26.21164 & 2802911 & 34.35192 \\ \hline 14 & 18.29191 & 19.59863 & 21.01507 & 22,5505 & 24.21492 & 26.01919 & 27,97498 & 30.00492 & 3239260 & 40,50471 \\ \hline is & 20.02359 & 21.57856 & 23,27597 & 25,1290 & 27.15211 & 29.36092 & 31.77248 & 34.40536 & 37.27972 & 47.58041 \\ \hline 16 & 21.82453 & 23.65749 & 25.67253 & 27.8881 & 30.32428 & 33.00340 & 35.94973 & 39.18995 & 42.75328 & 55.7174? \\ \hline 17 & 23.69751 & 25.84037 & 28,21288 & 30.8402 & 33.75023 & 36,97351 & 40.54470 & 44.50084 & 48.88367 & 65.07509 \\ \hline 18 & 25.64541 & 28.13238 & 30.90565 & 33.9990 & 37.45024 & 41.30134 & 45.59917 & 50.39593 & 55.74972 & 75,83636 \\ \hline 19 & 27.67123 & 30.53900 & 33,75999 & 37,3790 & 41.44626 & 46.01846 & 51,15909 & 56.93949 & 63.43968 & 88.21181 \\ \hline 20 & 29.77808 & 33.06595 & 36.78559 & 40,9955 & 45.76190 & 51.16012 & 57.27500 & 64.20283 & 72.05244 & 10244358 \\ \hline \end{tabular} TABLE 3 Present Value of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{l} (ni) \\ Periods \end{tabular} & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 1 & 96154 & 95238 & 94340 & 0.93458 & 92593 & 91743 & 90909 & 90090 & 89286 & 86957 \\ \hline 2 & 92456 & 90703 & 89000 & 088734 & 85734 & 84168 & 82645 & 81162 & 79719 & 75614 \\ \hline 3 & 88900 & .86384 & 83962 & 0.81630 & .79383 & 77218 & 75132 & 73119 & .71178 & .65752 \\ \hline 4 & 85480 & 82270 & 79209 & 0.76290 & .73503 & 70843 & 68301 & .65873 & .03552 & 57175 \\ \hline 5 & .82193 & 78353 & .74726 & 0.71299 & 68058 & 64993 & 62092 & 59345 & .56743 & 49718 \\ \hline 6 & 79031 & .74622 & 70496 & 0.60634 & 63017 & 59627 & 56447 & 53464 & 50663 & 43233 \\ \hline 7 & .75992 & .71068 & .66506 & 0.62275 & 58349 & 54703 & 51316 & 48166 & 45235 & 37594 \\ \hline 8 & 73069 & .07684 & 62741 & 0.58201 & 54027 & 50187 & 46651 & .43393 & 40389 & 32690 \\ \hline 9 & .70259 & 64461 & 59190 & 0.54393 & 50025 & 46043 & 42410 & 39092 & 36061 & 28426 \\ \hline 10 & 67556 & 61391 & 58839 & 0.50835 & 40319 & 42241 & 38554 & 35218 & 32197 & 24719 \\ \hline 11 & 64958 & 58468 & 52679 & 0.47509 & 42888 & 38753 & 35049 & 31728 & 28748 & 21494 \\ \hline 12 & 62460 & 55684 & 49697 & 0.44401 & 39711 & 35554 & 31863 & 28584 & 25668 & 18691 \\ \hline 13 & 60057 & 53032 & A6884 & 0.41496 & 36770 & 32618 & 28966 & 25751 & 22917 & 16253 \\ \hline 14 & 57748 & 50507 & 44230 & 0.38762 & 34046 & 29925 & 26333 & 23199 & 20462 & 14133 \\ \hline 15 & 55526 & 48102 & 41727 & 0.36245 & 31524 & 27454 & 23939 & 20000 & 18270 & 12289 \\ \hline 16 & $3391 & 45811 & 39065 & 0.33873 & 29189 & 25187 & 21763 & 18829 & .16312 & .10687 \\ \hline 17 & 51337 & 43020 & 37136 & 031657 & 27027 & 23107 & 19785 & 10963 & 14564 & 09293 \\ \hline is & 49363 & 41552 & 35034 & 029586 & 25025 & 21199 & 17986 & 1522 & 13004 & 08081 \\ \hline 19 & 47464 & 39573 & 33051 & 027615 & 23171 & 19449 & 16351 & 13768 & 11611 & .07027 \\ \hline 20 & 45639 & 37699 & 31180 & 025842 & 21455 & 17843 & 14804 & 12403 & 10367 & .06110 \\ \hline \end{tabular} TABLE 4 Present Value of an Annuity of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (m) \\ Payments \end{tabular} & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 1 & 96154 & 95238 & 94340 & 0.93458 & 92593 & 91743 & 90909 & 90090 & 89286 & .86957 \\ \hline 2 & 188609 & 185941 & 1.83339 & 1.80802 & 1.78326 & 1.75911 & 1.73554 & 1.71252 & 1.69005 & 1.62571 \\ \hline 3 & 2,77509 & 272325 & 2.67301 & 2.62432 & 257710 & 253130 & 2.48685 & 2.44371 & 2.40183 & 2.28323 \\ \hline 4 & 3.62990 & 354595 & 3.46511 & 3.38721 & 3.31213 & 3.23972 & 3,16986 & 3,10245 & 3.03735 & 2.85498 \\ \hline 5 & 4.45182 & 4.32948 & 4.21236 & 4.10020 & 3.99271 & 388965 & 3.79079 & 3.69590 & 3.00478 & 3.35216 \\ \hline 6 & 524214 & 5.07569 & 491732 & 4.76654 & 4.62288 & 4.48592 & 435526 & 4.23054 & 4.11141 & 3.78448 \\ \hline 7 & 6.00205 & 5,78637 & 558238 & 538929 & 5.20637 & 5.03295 & 4.86842 & 4.71220 & 4.5 & 4.16042 \\ \hline 8 & 6.73274 & 646321 & 6.20979 & 5,97130 & 5.74664 & 5.53482 & 533493 & 5.14012 & 4.96764 & 4.48732 \\ \hline 9 & 743533 & 7.10782 & 6.80169 & 6.51523 & 6.24689 & 5.90525 & 5.75902 & 5,53705 & 5,32825 & 4.77158 \\ \hline 10 & 5.11090 & 7.72173 & 7.36009 & 7.02358 & 6.71008 & 641766 & 6.14457 & 5.88923 & 5.65022 & 5.01877 \\ \hline II & 8.70048 & 8.30641 & 788657 & 7,49867 & 713896 & 680519 & 6,49506 & 6,20652 & 5,93770 & 523371 \\ \hline 12 & 9.38507 & 8.80325 & 8.38384 & 794269 & 753608 & 7.16073 & 6.81300 & 6.49236 & 6.19437 & 5,42062 \\ \hline 13 & 9.98565 & 939357 & 8.85268 & 835765 & 2,90378 & 7.48090 & 7.10336 & 6.74987 & 6.42355 & 5.58315 \\ \hline 14 & 1056312 & 99864 & 920498 & 874547 & 8.24 .124 & 7.78615 & 7.36009 & 6.95187 & 602817 & 5.72448 \\ \hline is: & 11.11809 & 1037960 & 9.71225 & 9.10791 & 8.55948 & 800069 & 7.60608 & 7,19087 & 6.81056 & 584737 \\ \hline 16 & 11.65230 & 10.83777 & 10.10590 & 9.44665 & 8.85137 & 6,31256 & 782371 & 737916 & 0.97399 & 5.95424 \\ \hline 17 & 1216567 & 1127407 & 10.47726 & 9.76322 & 9.12164 & 854363 & 802155 & 2,54879 & 7.11963 & 604716 \\ \hline 18 & 12.65930 & 11.08959 & 10.82760 & 1005%09 & 937189 & x.75563 & 820141 & 7.70162 & 7.24967 & 6.12797 \\ \hline 19 & 13.13394 & 12.08532 & 11.15812 & 10.33560 & 9.60360 & 8.95012 & 836492 & 7.83929 & 736578 & 0,19823 \\ \hline 20 & 1359033 & 12.46221 & 11.46992 & 10.59401 & 981815 & 9,12855 & 851356 & 7.96333 & 7.40944 & 0.25933 \\ \hline \end{tabular}

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