Skyline Corp. will invest $170,000 in a project that will not begin to produce returns until the end of the 3rd year. From the end of the 3rd year until the end of the 12th year (10 periods), the annual cash flow will be $42,000. Use Appendix B and Appendix Difor an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Calculate the net present value if the cost of capital is 13 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value Appendix B Present value of $1, PV Period 1% 2% 1 0.990 0.980 2 0.980 0.961 3 0.971 0.942 0.961 0.924 0.951 0.906 0.942 0.888 0.933 0.871 0.923 0.853 0.914 0.837 0.905 0.820 0.896 0.804 0.887 0.788 0.879 0.773 0.870 0.758 0.861 0.743 0.853 0.728 0.844 0.714 0.836 0,700 0.828 0.686 0.820 0.673 0.780 0.610 0.742 0,552 0.672 0.453 0.608 0.372 4 5 6 7 B 9 10 11 12 13 14 15 16 17 1424898 20 25 30 40 50 PV[+] 3% 4% 0.971 0.962 0.943 0.925 0.915 0.889 0.888 0.855 0.863 0.822 0.837 0.790 0813 0.760 0.789 0.731 0.766 0.703 0.744 0.676 0.722 0.650 0.701 0.625 0.681 0.601 0.661 0.577 0.642 0.555 0.623 0.534 0.605 0.513 0.587 0.494 0.570 0.475 0.554 0,456 0,478 0.375 0,412 0.308 0.307 0.208 0.228 0.141 PV = FV Percent 5% 6% 7% 0.952 0.943 0.935 0.907 0.890 0.873 0.864 0.840 0.816 0.823 0,792 0.763 0.784 0.747 0.713 0.746 0.705 0.666 0.711 0.665 0.623 0.677 0627 0.582 0.645 0.592 0.544 0.614 0.558 0.508 0.585 0.527 0.475 0.557 0.497 0.444 0.530 0.469 0.415 0.505 0.442 0.388 0.481 0.417 0.362 0.458 0.394 0.339 0.426 0.371 0.317 0.416 0.350 0.296 0.396 0.331 0,277 0.377 0.312 0.258 0.295 0.233 0.184 0.231 0.174 0.131 0.142 0.097 0.067 0.087 0.054 0.034 8% 0.926 0.857 0.794 0735 0.681 0630 0.583 0.540 0.500 0463 0429 0397 0.368 0.340 0315 0.292 0.270 0.250 0.232 0.215 0.146 0.099 0.046 0.021 9% 10% 0.917 0.909 0.842 0.826 0.772 0.751 0.708 0.683 0.650 0.621 0.596 0.564 0.547 0.513 0.502 0.467 0.460 0.424 0.422 0.386 0,388 0.350 0.356 0.319 0.326 0.290 0.299 0.263 0.275 0.239 0.252 0,218 0.231 0.198 0.212 0.180 0,194 0.164 0.178 0.149 0.116 0.092 0.075 0.057 0.032 0.022 0.013 0.009 11% 0.901 0.812 0.731 0.659 0.593 0.535 0.482 0:434 0.391 0.352 0.317 0.286 0.258 0232 0.209 0.188 0.170 0.153 0.138 0.124 0.074 0.044 0015 0.005 12% 0893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 0.163 0.146 0.130 0.116 0.104 0.059 0033 0,011 0.003 Appendix B (concluded) Present value of 51 Period 13% 14% 15% 1 0.885 0.877 0.870 2 0.783 0.769 0.756 3 0.693 0.675 0.658 4 0.613 0.592 0.572 5 0.543 0.519 0.497 0.480 0.456 0.432 7 0.425 0.400 0.376 8 0,376 0.351 0.327 9 0.333 0.308 0.284 10 0.247 0.270 0.295 0.261 0.237 0.215 11 12 0.231 0.208 0.187 0.204 0.182 0.163 0.181 0.160 0.141 0.160 0,140 0.123 0.141 0.123 0.107 0.125 0,108 0.093 0.111 0.095 0.081 0.098 0.083 0.070 0.087 0.073 0,061 0.047 0.038 0.030 0.026 0.020 0.015 0.008 0.005 0.004 0.001 0.002 0.001 NOTOO 13 14 15 16 17 18 19 20 25 30 40 50 Percent 16% 17% 18% 19% 20% 30% 0.862 0.855 0.847 0.840 0.833 0.769 0.743 0.731 0.718 0.706 0.694 0.592 0.641 0.624 0.609 0,593 0.579 0.455 0.552 0.534 0.515 0.499 0.482 0.350 0.476 0.456 0.437 0.419 0,402 0.269 0.410 0.390 0.370 0.352 0.335 0.207 0.354 0.333 0.314 0.296 0.279 0.159 0.305 0.285 0.266 0.249 0.233 0.123 0.263 0.243 0.225 0.209 0.194 0.094 0.227 0.208 0.191 0.176 0.073 0.195 0.1 0,162 0.148 0.056 0.168 0.152 0.137 0,124 0.112 0.069 0.043 0.145 0.130 0.116 0.104 0.125 0.111 0.099 O.OBB 0.078 0,044 0.108 0.095 0.084 0.093 0.055 0.033 0.025 0.074 0.065 0.035 0.020 0.062 0054 0.028 0.015 0.052 0,045 0.023 0.012 0.093 0.081 0.071 0.080 0.069 0.000 0.069 0.059 0.051 0.044 0.060 0.051 0.043 0.037 0.007 0.038 0.018 0.009 0.031 0.014 0.037 0.031 0.026 0.012 0.020 0.016 0.013 0.010 0.009 0.007 0.005 0.051 0.043 0.005 0.002 0.024 0.004 0.001 0.001 0.004 0 001 0.012 0.003 0.002 0.001 0.001 0 0.001 0 0.001 O 25% 0.800 0.640 0.512 0.410 0.328 0.262 0210 0.168 0.134 0.162 0.107 0.135 0.086 000 ooooo 000 35% 40% 50% 0.741 0.714 0.667 0.549 0.510 0.444 0.406 0.364 0.296 0.301 0.260 0.198 0.223 0.186. 0.132 0.165 0.133 0.088 0.122 0.095 0.059 0.091 0.068 0039 0.067 0.048 0.026 0.050 0.035 0.017 0037 0.025 0.012 0.027 0.018 0.008 0.020 0.013 0.005 0.009 0.003 0.015 0.011 0.008 0.006 0.002 0.005 0.002 0.003 0001 0.006 0.005 0 002 0.001 0.003 0.002 0001 0 0 0 0 0 0 0 6800 0 Appendix D Present value of an annuity of $1. PV Period 1% 2% 3% 1 0.990 0.980 0.971 2 1.970 1.942 1.913 2.941 2.884 2.829 3.902 3.808 3.717 4.853 4.713 4.580 5.795 5.601 5.417 6.728 6.472 6.230 7.652 7.325 7.020 8.566 8.162 7.786 9.471 8.983 8.530 10.368 9.787 9.253 11,255 10.575 9.954 12.134 11.348 10.635 13.004 12.106 11.296 13.865 12.849 11.938 14,718 13.578 12.561 15.562 14.292 13.166 16.398 14.992 13.754 17.226 14.324 15.678 18.046 16.351 14.877 22.023 19.523 17.413 15.622 25.808 22.396 19.600 17.292 32.835 27.355 23.115 19,793 39.196 31,424 25.730 21.482 34 5678 9 10 11 12 13 14 15 16 17 18 19 20 25 30 40 50 PV = A 4% 0.962 1.886 2.775 3.630 4.452 5.242 6.002 6.733 7.435 8.111 8.760 9.385 Percent 5% 6% 0.952 0.943 1.859 1.833 2.723 2.673 3.546 3.465 4.329 4.212 5.076 4.917 5.786 5.582 6.463 6.210 7.108 6.802 7.722 7.360 8.306 7.887 8.863 8.384 9.986 9.394 8.853 10.563 9.899 9.295 11.118 10,380 9.712 11.652 10.838 10.106 12.166 11.274 10.477 12.659 11.690 10.828 13.134 12.085 11.158 13.590 12.462 11.470 14.094 12.783 15.372 13.765 17.159 15.046 18.256 15.762 7% 8% 0.935 0.926 1.808 1.783 2.624 2.577 3.387 3.312 4.100 3.993 4.767 4.623 5.389 5.206 5.971 5.747 6.515 6.247 7.024 6.710 7.499 7.139 7.943 7.536 8.358 7.904 8.745 8.244 9.108 8.559 9.447 8.851 9.763 9.122 10.059 9.372 10.336 9.604 10.594 9.818 11.654 10.675 11.258 12.409 11.925 13.332 12.233 13.901 9% 10% 11% 0.917 0.909 0.901 1.759 1.736 1.713 2.531 3.240 3.170 2,487 2.444 3.102 3.696 3.890 3.791 4.486 4.355 4231 5.033 4.868 4.712 5.535 5.335 5.146 5.995 5.759 5.537 6.418 6.145 5.889 6.805 6.495 6.207 6.814 6.492 7.161 7.487 7.103 6.750 7.786 7.367 6.982 8.061 7.606 7.191 8.313 7.824 7.379 8.544 8.022 7.549 8.756 8.201 7.702 8.950 8.365 7.839 9.129 8.514 7.963 9.823 8.422 9.077 10274 9.427 8.694 10.757 9.779 8.951 10.962 9.915 9.042 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6628 6.811 6.974 7.120 7.250 7.366 7.469 7.843 8.055 8.244 8.304 Appendix D (concluded) Present value of an annuity of $1 Percent Period 13% 14% 15% 16% 17% 18% 19% 20% 25% 30% 35% 40% 1 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 2 0.800 0.769 0.741 0.714 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528 1,440 1.361 1.289 1.224 2.361 2.322 2.283 2,246 2.210 2.174 2.140 2.106 1.952 1.816 1.696 1.589 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.362 2.166 1.997 1.849 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.689 2.436 2.220 2.035 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 2.951 2.643 2.385 2.168 4.423 4.288 4.160 4.039 3.922 3.812 3,706 3.605 3.161 2.802 2.508 2.263 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.329 2.598 2.331 2.925 3.463 3.019 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 2.665 2.379 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 2.715 2.414 5.687 5.453 5.234 5.029 4.836 4.656 4.486 4.327 3.571 3.092 3.147 3.190 2.779 2.456 2.752 3.656 3.725 2.438 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 3.780 3.223 2.799 2.469 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 3.824 2.814 2,478 3.249 3.268 6.462 6.142 5.847 5.575 5.324 5.092 4675 3.859 2.484 4.876 5.162 4.938 2.825 3.283 2.834 2.489 6.604 6.265 5.954 5.668 5.405 4.730 2840 6.729 6.373 6.047 5.749 2.492 5.475 5.222 4.988 3.887 4.775 3.910 4.812 3.928 3,942 3.311 3.295 3.304 5.273 5.033 2.844 2.494 6.840 6.467 6.128 5.818 5.534 5.070 2.848 6.938 5.316 4.843 2.496 6.550 5.877 6.198 5.584 4.870 5.353 5.101 2.850 2.497 7.025 6.623 6.259 5.929 5.628 4.948 2.499 7.330 6.873 6.464 6.097 5.766 5.467 5,195 3.954 3.316 3.985 3.329 2.856 5,235 4.979 3.995 3.332 2.857 2.500 5.258 4.997 3.999 7.496 7.003 6.566 6.177 5.829 5.517 5.871 5.548 3.333 2.857 2.500 7.634 7.105 6.642 6,233 4.000 4.999 3.333 2.857 2.500 7.675 7.133 6.661 5.880 6.246 345 6 7 8 9 10 11 12 13. 14 15 16 7399 17 18 19 20 25 30 50 50 40 5.554 5.262 50% 0.667 1.111 1.407 1.605 1.737 1.824 1.883 1.922 1.948 1.965 1.977 1.985 1.990 1.993 1.995 1.997 1.998 1.999 1.999 1.999 2.000 2.000 2.000 2.000