Skyline Music is considering investing $775,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $100,000 per year for the next nine years. Assuming that Skyline Music uses a 12% hurdle rate, what is the net present value (NPV) of the studio investment? Is this a favorable investment? (Click the icon to view the present value of an annuity table.) (Click the icon to view the future value of an annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value table.) (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) The net present value of the studio investment is Since the NPV is the studio investment Skyline Music's minimum required rate of return. Therefore, the investment is copy number in the edit fields and then continue to the next question. stment is Present Value of Annuity of $1 investment Periods 1% 2% 3% Period 1 0.990 0.980 Period 2 1.970 1.942 1.913 2.941 3.902 4.853 2.884 2.829 3.808 3.717 4.713 4.580 4% 0.971 0.962 1.886 2.775 3.630 4.452 5% 6% 8% 10% 12% 14% 16% 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.859 1.833 1.783 1.736 1.690 1.647 1.605 Period 3 1.566 2.723 2.673 2.577 2.487 2.402 2.322 2.246 Period 4 2.174 3.546 3.465 3.312 3.170 3.037 2.914 2.798 Period 5 2.690 2.589 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 Period 7 3.326 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 18% 20% 1.528 2.106 8.306 7.887 5.216 4.833 4.494 4.192 Period 11 10.368 9.787 9.253 8.760 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 6.623 5.929 5.353 4.870 6.873 6.097 5.467 4.948 7.003 6.177 5.517 4.979 7.105 6.233 5.548 4.997 Print Done ollar. Use Future Value of Annuity of $1 ent is Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 stment Period 2 Period 3 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 Period 5 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 Period 7 Period 8 6.152 6.308 6.468 6.633 7.214 7.434 7.662 7.898 8.142 8.286 8.583 8.892 9.214 9.549 9.369 9.755 10.159 10.583 11.027 10.462 10.950 11.464 12.006 12.578 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 Period 9 Period 10 11.567 12.169 12.808 13.486 14.207 Period 11 14.972 16.645 18.531 20.655 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 18.882 21.495 24.523 28.029 Period 13 13.809 14.680 15.618 16.627 17.713 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 91.025 115.380 146.628 186.688 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 249.214 342.603 471.981 Period 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 530.312 790.948 1,181.882 Period 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 Period 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 8.394 8.923 9.487 10.089 9.897 10.637 11.436 12.300 11.491 12.488 13.579 14.776 13.181 14.487 15.937 17.549 10.730 11.414 12.142 12.916 43.842 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 23.045 25.733 28.755 32.150 30.850 27.271 34.931 39.581 32.089 36.786 42.219 48.497 37.581 43.672 50.818 59.196 51.660 60.965 72.035 Print Done Present Value of $1 Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 Period 2 0.980 5% 0.962 0.952 0.925 0.907 Period 3 Period 11 Period 13 0.879 0.773 Period 14 0.870 0.758 Period 15 0.861 0.743 Period 20 Period 25 0.780 0.820 0.673 0.610 Period 30 0.742 0.552 Period 40 0.672 0.453 6% 8% 10% 12% 14% 0.943 0.926 0.909 0.893 0.877 0.961 0.943 0.890 0.857 0.826 0.797 0.769 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.307 0.046 0.208 0.022 0.142 0.097 16% 0.862 0.743 0.718 18% 20% 0.847 0.833 0.694 0.519 0.476 0.437 0.402 0.191 0.162 0.162 0.135 0.137 0.112 0.065 0.037 0.026 0.016 0.010 0.007 0.004 0.011 0.005 0.003 0.001 0.001 Drint Done e value of an Future Value of $1 whole dollar. Periods 1% 2% 3% 4% Period 1 1.010 1.020 1.030 1.040 investment is Period 2 1.020 1.040 1.061 1.082 5% 6% 1.050 1.060 1.103 1.124 8% 10% 12% 14% 1.080 1.100 1.120 1.140 1.166 1.210 1.254 1.300 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 Period 4 1.041 1.082 1.126 1.170 udio investme Period 5 1.051 1.104 1.159 1.217 1.216 1.262 1.276 1.338 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 Period 7 1.072 1.149 1.230 1.316 1.407 Period & 1.083 Period 9 Period 10 1.172 1.267 1.369 1.094 1.195 1.305 1.105 1.219 1.344 Period 11 1.116 1.384 1.539 Period 12 1.127 1.268 1.426 1.601 Period 13 1.138 1.294 1.469 1.665 Period 14 1.149 1.319 1.513 Period 15 1.161 1.346 1.243 1.732 1.558 1.801 2.079 2.332 2.853 3.479 2.518 3.138 3.896 2.720 3.452 4.363 2.937 3.797 4.887 3.172 4.177 5.474 16% 18% 1.160 1.180 1.200 1.346 1.392 1.440 1.561 1.643 1.728 1.360 1.464 1.574 1.689 1.811 1.939 1.469 1.611 1.762 1.925 2.100 2.288 2.488 1.587 1.772 1.974 2.195 2.436 2.700 2.986 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1.710 1.898 1.796 2012 1.886 2.133 1.980 2.261 2.397 20% 2.074 4.226 5.117 6.176 4.818 5.936 7.288 5.492 6.886 6.261 7.988 10.147 7.138 9.266 11.974 7.430 8.916 8.599 10.699 12.839 15.407 Period 20 1.220 1.486 1.806 2.191 Period 25 1.282 1.641 2.094 2.666 Period 30 1.348 1.811 2.427 3.243 Period 40 1.489 2.208 3.262 4.801 4.322 7.040 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 Print Done