TABLE $11\mathrm{.}4$A Present Value of Annuity of $$1$ TABLE $11\mathrm{.}3$ A Future Value of an Annuity of $$1$

$\backslash$table$[[$Periods$*,2\%,3\%,3\mathrm{.}75\%,4\%,4\mathrm{.}25\%,5\%,6\%,7\%,8\%],[1,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000],[2,2\mathrm{.}0200,20300,2\mathrm{.}0375,2\mathrm{.}0400,2\mathrm{.}0425,2\mathrm{.}0500,2\mathrm{.}0600,20700,2\mathrm{.}0800],[3,3\mathrm{.}0604,3\mathrm{.}0909,3\mathrm{.}1139,3\mathrm{.}1216,3\mathrm{.}1293,3\mathrm{.}1525,3\mathrm{.}1836,3\mathrm{.}2149,3\mathrm{.}2464],[4,4\mathrm{.}1216,4\mathrm{.}1836,4\mathrm{.}2307,4\mathrm{.}2465,4\mathrm{.}2623,4\mathrm{.}3101,4\mathrm{.}3746,4\mathrm{.}4399,4\mathrm{.}5061],[5,5\mathrm{.}2040,5\mathrm{.}3091,5\mathrm{.}3893,5\mathrm{.}4163,5\mathrm{.}4434,5\mathrm{.}5256,5\mathrm{.}6371,5\mathrm{.}7507,5\mathrm{.}8666],[6,6\mathrm{.}3061,6\mathrm{.}4684,6\mathrm{.}5914,6\mathrm{.}6330,6\mathrm{.}6748,6\mathrm{.}8019,6\mathrm{.}9753,7\mathrm{.}1533,7\mathrm{.}3359],[7,7\mathrm{.}4343,7\mathrm{.}6625,7\mathrm{.}8386,7\mathrm{.}8983,7\mathrm{.}9585,8\mathrm{.}1420,8\mathrm{.}3938,8\mathrm{.}6540,8\mathrm{.}9228],[8,8\mathrm{.}5830,8\mathrm{.}8923,9\mathrm{.}1326,9\mathrm{.}2142,9\mathrm{.}2967,9\mathrm{.}5491,9\mathrm{.}8975,10\mathrm{.}2598,10\mathrm{.}6366],[9,9\mathrm{.}7546,10\mathrm{.}1591,10\mathrm{.}4750,10\mathrm{.}5828,10\mathrm{.}6918,11\mathrm{.}0266,11\mathrm{.}4913,11\mathrm{.}9780,12\mathrm{.}4876],[10,10\mathrm{.}9497,11\mathrm{.}4639,11\mathrm{.}8678,12\mathrm{.}0061,12\mathrm{.}1462,12\mathrm{.}5779,13\mathrm{.}1808,13\mathrm{.}8164,14\mathrm{.}4866],[20,24\mathrm{.}2974,26\mathrm{.}8704,29\mathrm{.}0174,29\mathrm{.}7781,30\mathrm{.}5625,33\mathrm{.}0660,36\mathrm{.}7856,40\mathrm{.}9955,45\mathrm{.}7620],[$Periods$*,9\%,10\%,11\%,12\%,13\%,14\%,15\%,20\%,25\%],[1,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000,1\mathrm{.}0000],[2,2\mathrm{.}0900,2\mathrm{.}1000,2\mathrm{.}1100,2\mathrm{.}1200,2\mathrm{.}1300,2\mathrm{.}1400,2\mathrm{.}1500,2\mathrm{.}2000,2\mathrm{.}2500],[3,3\mathrm{.}2781,3\mathrm{.}3100,3\mathrm{.}3421,3\mathrm{.}3744,3\mathrm{.}4069,3\mathrm{.}4396,3\mathrm{.}4725,3\mathrm{.}6400,3\mathrm{.}8125],[4,4\mathrm{.}5731,4\mathrm{.}6410,4\mathrm{.}7097,4\mathrm{.}7793,4\mathrm{.}8498,4\mathrm{.}9211,4\mathrm{.}9934,5\mathrm{.}3680,5\mathrm{.}7656],[5,5\mathrm{.}9847,6\mathrm{.}1051,6\mathrm{.}2278,6\mathrm{.}3528,6\mathrm{.}4803,6\mathrm{.}6101,6\mathrm{.}7424,7\mathrm{.}4416,8\mathrm{.}2070],[6,7\mathrm{.}5233,7\mathrm{.}7156,7\mathrm{.}9129,8\mathrm{.}1152,8\mathrm{.}3227,8\mathrm{.}5355,8\mathrm{.}7537,9\mathrm{.}9299,11\mathrm{.}2588],[7,9\mathrm{.}2004,9\mathrm{.}4872,9\mathrm{.}7833,10\mathrm{.}0890,10\mathrm{.}4047,10\mathrm{.}7305,11\mathrm{.}0668,12\mathrm{.}9159,15\mathrm{.}0735],[8,11\mathrm{.}0285,11\mathrm{.}4359,11\mathrm{.}8594,12\mathrm{.}2997,12\mathrm{.}7573,13\mathrm{.}2328,13\mathrm{.}7266,16\mathrm{.}4991,19\mathrm{.}8419],[9,13\mathrm{.}0210,13\mathrm{.}5975,14\mathrm{.}1640,14\mathrm{.}7757,15\mathrm{.}4157,16\mathrm{.}0853,16\mathrm{.}7858,20\mathrm{.}7989,25\mathrm{.}8023],[10,15\mathrm{.}1929,15\mathrm{.}9374,16\mathrm{.}7220,17\mathrm{.}5487,18\mathrm{.}4197,19\mathrm{.}3373,20\mathrm{.}3037,25\mathrm{.}9587,33\mathrm{.}2529],[20,51\mathrm{.}1601,57\mathrm{.}2750,64\mathrm{.}2028,72\mathrm{.}0524,80\mathrm{.}9468,91\mathrm{.}0249,102\mathrm{.}4436,186\mathrm{.}6880,342\mathrm{.}9447]]$ TABLE $11\mathrm{.}2$A Present Value of $$1$TB Problem $11-115($Algo$)[$LO $11-1,11-2,11-3,11-4]$

Briar Corporation is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an

annual increase in net cash flow of $$201,000.$ The equipment will have an initial cost of $$1,201,000$ and an $8-$year useful life. The

salvage value of the equipment is estimated to be $$201,000.$ Briar's cost of capital is $6\%.($Future Value of $$1,$ Present Value of $$1,$

Future Value Annuity of $$1,$ Present Value Annuity of $$1)$

Note: Use appropriate factor from the PV tables.

Required:

a$.$ What is the accounting rate of return?

b$.$ What is the payback period?

c$.$ What is the net present value?

d$.$ What would the net present value be with a $13\%$ cost of capital?

e$.$ Based on the NPV calculations, what would be the equipment's internal rate of return?

Complete this question by entering your answers in the tabs below.

What would the net present value be with a $13\%$ cost of capital?

Note: Negative value should be indicated by a minus sign. Round your answer to nearest dollar amount.