Solving for Unknown Follow the format shown in Exhibit 120-1 and Exhibit 128-2 as you complete the requirements below Each of the following scenarios are independent. Assume that all cash flows are after-tax cash flows. a. Thomas Company is investing $120,000 in a project that will yield a uniform series of cash inflows over the next 4 years b. Video Repair has decided to invest in some new electronic equipment. The equipment will have a 3-year life and will produce a uniform series of cash savings. The NPV of the equipment is $1,750, using a discount rate of The IRR is 12 c. A new lathe costing 560,096 will produce savings of $12,000 per year d. The NPV of a project is $3,927. The project has a life of 4 years and produces the following cash flows: Year 1 Year 2 Year 3 $10,000 $12,000 $15,000 Year 4 The cost of the project is two times the cash flow produced in Year 4. The discount rate is 10% Required: Round your answers to the nearest dollar 1. If the internal rate of return is 14% for Thomas Company, how much cash flow per year can be expected? $ per year 2. Determine the investment and the amount of cash savings realed each year for Video Repair Savings each year Original investment 3. For Scenario e, how many years must the lathe last of an IRR of 18% is realized? years Ganari de find the cost of the project and the cash flow for Year 4 Each of the following scenarios are independent. Assume that all cash flows are after-tax cash flows. a. Thomas Company is investing $120,000 in a project that will yield a uniform series of cash inflows ove b. Video Repair has decided to invest in some new electronic equipment. The equipment will have a 3-yea equipment is $1,750, using a discount rate of 8%. The IRR is 12%. C. A new lathe costing $60,096 will produce savings of $12,000 per year. d. The NPV of a project is $3,927. The project has a life of 4 years and produces the following cash flows: Year 1 $10,000 Year 2 $12,000 Year 3 $15,000 Year 4 The cost of the project is two times the cash flow produced in Year 4. The discount rate is 10%. Required: Round your answers to the nearest dollar. 1. If the internal rate of return is 14% for Thomas Company, how much cash inflow per year can be expected? $ per year 2. Determine the investment and the amount of cash savings realized each year for Video Repair. Savings each year Original investment 3. For Scenario c, how many years must the lathe last if an IRR of 18% is realized? years 4. For Scenario d, find the cost of the project and the cash flow for Year 4. Cost of the project Cash flow for year 4 $ $ / 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 10% 10% 20% 25% 30% 1 0.99010 0.98039 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.00209 0.19286 087719 O.M207 0.34746 031333 0.80000 076923 2 0.98030 0.96117 0.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 079719 0.76947 0.74316 0.71818 0.69444 0.64000 0.59172 3 0.97059 0.94232 0,91514 0.88900 0.86384 0.31962 0.81630 0.79383 0.772.5 0.75131 0.71178 0.67497 0.64066 0.60863 0.57870 0.51200 0.45517 4 0.96098 0.92385 0.88849 0.85480 0.82270 0.79209 0.76290 073503 070843 0.68301 0.61552 0.59208 0.55229 0.51579 0.48225 0.40960 0.35013 5 0.95147 0.00573 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.56743 0.51937 0.47611 0.43711 0.40168 0.32768 0.26933 6 0.94205 0.88797 0.81748 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 0.42888 0.38753 0.35049 0.28748 0.23662 0.19542 0.16192 0.13459 0.08590 0.05580 12 0.88745 0.78849 0.70138 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 0.14521 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 0.53191 0.45811 0.39165 0.33873 0.29189 0.25187 0.21761 0.16112012289 0.09104 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 0.45639 037689 0.31180 0.25842 0.21455 0.17843 0.14864 0.10367 0.07276 0.05139 0.03651 0.02608 0.01153 0.00526 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 0.52189 0.42196 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 0.12557 0.26180 0.21095 0.17032 0.13778 0.11168 0.07379 0.04911 0.01292 0.02222 0.01509 0.00590 0.00239 24 0.78757 0.62172 0.49193 0.19012 0.31007 0.24698 0.19715 0.15770 0.12640 0.10153 0.06588 0.04308 0.02838 0.01683 0.01258 0.00472 0.00184 25 0.77977 0.60953 0.47761 0.17512 0.29530 0.23300 0.18425 0.14602 0.11597 0.09230 0.05882 0.01779 0.02447 0.01596 0.01048 0.00378 0.00142 26 0.77205 0.59758 0.46369 0.36069 0.28124 0.21981 0.17220 0.13520 0.10639 0.08191 0.05252 0.03315 0.02109 0.01352 0.00374 0.00302 0.00109 27 0.76440 0.58586 0.45019 0.14682 0.26785 0.20717 0.16093 0.12519 0.09761 0.07628 0.04680 0.02008 0.01818 0.01146 0.00728 0.00242 0.00084 28 0.75654 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 0.00191 0.00065 29 0.7494 0.56311 0.42435 0.32065 0.24295 0.16456 0.14056 0.10733 0.08215 0.06304 0.01738 0.02217 0.01351 0.00823 0.00506 0.00155 0.00050 30 0.74192 0.55207 0.41199 0.30812 0.23138 0.17411 0.13137 0.09938 0.07537 0.05731 0.0318 0.01961 0.01165 0.00697 0.00421 0.00124 0.00038 w/ 19 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 18% 20% 25% 30% 1 0.99010 0.98019 0.97087 0.96194 0.95238 0.94340 0.93458 0.92593 0.917430.90909 0.89286 0.87719 0.86207 0.84746 0.81111 0 0000 0.7692 2 1.97040 1.94156 1.91347 188609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.69005 1.64666 1.60523 1.56564 1.52778 1.44000 1.36095 3 2.94099 2.88388 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710 2.53129 2.48685 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 3.31213 3.239723.16987 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 4.168424.56376 4.28830 4.03857 3.81153 3.60459 3.16114 2.80211 8 7.65168 7.32548 7.01969 6.73274 6.46321 6.20979 5.97110 574664 553482531491 406764 463886 434359 4.07757 3.83716 3.32891 2.92470 9 5 6602 8.16224 7.78611 7.43533 7.10782 6.80169 6 51521 6 24689 5905255 75002 512825 494617 460654 4.30302 4.03097 3.46313 3.01900 109.47130 8.98259 8.53020 8.11090 7.72173 7.36000 7.02358 671008 6.417666.14457 5.65022 5.21612 483323 449409 4.19247 3.57050 3.09154 11 10.36763 9.78685 925262 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 5.93770 5.45273 5.02864 4.65601 4.32706 3.65640 3.14734 12 11.25508 10.57534 9.95400 9.18507 8.86325 8.38384 7.04260 7.53608 716071681169 6.19437 5.66020 5.19711 4.79322 4.43922 3.72512 3.19026 13 12.13374 11.34837 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 322328 14 1300370 12.10625 11.29607 10 56312 9.89864 9.20408 8.74547 824424 7.786157.16660 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 8.06069 7.60608 6.81086 6.14217 5.57546 5.09158 4.67547 3.85926 3.26821 16 14.71787 13.57771 12.56110 11.65230 10.83777 10.10500 9.44665 885137 8.312567,82371 6.97399 6.26506 5.668 50 5.16235 4.72956 388741128324 17 15 56225 14.29187 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7.11963 6.37286 5.74870 5.22233 477463 3.9099) 3.29480 1816 1927 14 99203 1275351 1265910 11.63959 10.82760 10 D5000 91718987546120141224967 6.46742 581785327316 481219392794110369 19 1722601 1567846 14223801212194 12 08532 11.15812 10 33560 9.60360 805011816492 736578 655037 587746531624 4.84350 300235 31053 2018.04555 16.35143 1487747 11 50011 1246221 11.46992 10 59401 9.81815 9.12855851356 7:46944 6.62313 5.92884 5.35275 4.86958 3.95388 3.31579 21 1 69 17 01121 15.41502 1402916 1282115 11.76408 10 8355 10.01680 9.202248.64 7 56200 6.68696 5.97314518368 4.89132 3.06311 131984 22 19.66018 17.65805 15 93692 14 45112 11 16300 12.04158 11.06124 10.20074 9.442438.77154 7.64465 6.74294 601133 5.40990 4.90943 3.97049 3.32296 23 20.45582 18.29220 16.44261 14 85684 11.48857 12.303 38 11.27219 10. 17106 9.580218.88122 7.71843 6.79206 6.04425 5.43212 4.92453 3.97639 3.32535 24 21.24319 18 91393 169355415 24696 11 70864 12.55036 11.46011 10.52876 9.70661 8.984747.78432 6.83514 6.072615.45095 4.93710 3.98111 112719 25 22.02816 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 2279520 20.1210417 37684 15.08277 14 17519 13.00317 11.82578 10.80998 9.92897 9.16095 7.89566 6.90608 6.11818 5.48043 4.95632 3.98791312970 27 23.55961 20.70690 18.32703 16 32959 14.64303 13.21053 11.9871 10.91516 10.02658 9.21722 7.94255 6.93515 6.13636 5.49189 4.96360 3.99033 1.31054 28 24.31644 21.28127 18.76411 16 66106 148913 13.40616 12.117111105108 10.116139.10657 7.98442 6.96066 615204 550160 4.9696 199226 333118 29 25.06579 21.84438 10.188451608171 15 14107 1150072 1227767 11.15841 10.19828 9. 16051 802181 6.98304 616555 550083 4.97472 300181313168 30 25.8077122.1946 19.600417.2920115.37245 13.76483 12.4094 1125778 10.273659.42601 8.05518 7.00266 6.17720 5.51681 4.97894 2.99505 331206