TB MC Qu. 13-84 Croce, Inc., is investigating an investment... Croce, Inc., is investigating an investment in equipment that would have a useful life of 8 years. The company uses a discount rate of 11% in its capital budgeting. The net present value of the investment, excluding the salvage value, is -$579,638. (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 138-2, to determine the appropriate discount factor(s) using the tables provided How large would the salvage value of the equipment have to be to make the investment in the equipment financially attractive? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice $579,638 $63,760 $5,269,436 $1,335,571 Periods 4% 5% 6% 7% 8% 9% 109 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 10.962 0.952 0943 0.935 0.926 0917 0.9090.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0833 0.826 0.820 0813 0.806 0.800 2 0.925 0.907 0.890 0873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.640 3 0.889 0.864 0.840 0.8 16 0.79 0.772 0.751 0.731 0.712 0.693 0.575 0.658 0.641 0.624 O.609 0.593 0.579 0.564 0.551 O.537 0.524 0.512 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0,659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0,499 0,482 0.467 0451 0.437 0.423 0.410 5 0.822 0.784 0.747 0.713 0.681 0650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 6 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 7 0.760 0.711 0.665 0.623 0.583 0.547 0513 0,482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 0.731 0.677 0.627 0.582 0.540 0502 0.467 0.434 0404 0.376 0.3S1 O327 OJ 05 O:SS 0.66 O..g 0.18 070d 15t o.no o16 9 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 10 0.676 0.614 0.558 0.50B 0463 0422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 11 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.0B6 12 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 13 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 14 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0,088 0.078 0.069 0.062 0.055 0.049 0.044 15 0555 0.481 0417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0051 0.045 0.040 0.035 16 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 7 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.026 0.023 0.494 0.416 0.350 0.296 0.250 0.2 1 2 0.180 0.153 0.130 O. 111 0.095 0.081 0.069 0.059 0051 .044 0.038 0032 0028 0024 0021 0.018 19 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 20 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0073 0.061 0.051 0,043 0.037 0.031 0.026 0.022 0.019 0.016 0.014 0.012 21 O.439 0.359 0.294 0.242 0.199 0.164 0.135 0.112 0.093 0.077 0064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0.015 0.013 0.011 0.009 22 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.007 23 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0,091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 24 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.082 0.066 0.053 0.043 0.035 0.02B 0.023 0.019 0.015 0.013 0.010 0.00B 0.007 0.006 0.005 25 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0.053 0.042 0.033 0026 0.021 0.017 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 27 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 28 0.333 0.255 0.196 0.150 0.116 0.090 0.069 0,054 0.042 0.033 0.026 0.020 0.016 0.012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 321 0.243 0.185 0.141 0.107 0.082 0063 0.048 0.037 0.029 0.022 0017 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 30 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0.026 0.020 0.015 0.012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 40 0.208 0.142 0.097 0067 0.046 0032 0.022 0.015 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 EXHIBIT 13B-2 Present Value of an Annuity of $1 in Arrears; 1 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0952 0943 0935 0926 0917 0.909 0.901 0.893 0885 0.877 0.870 0862 0.855 0847 0.840 0833 0.826 0820 0813 0.806 0.800 2 1.886 1859 1833 1808 1.783 1759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528 1.509 1.492 1,474 1.457 1.440 2.775 2.723 2.673 2624 2577 2.531 2,487 2.444 2.402 2.361 2.322 2.283 2246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1952 4 3.630 3.546 3.465 3387 3312 3.240 3.170 3.102 3.037 2.974 2914 2855 2.798 2.743 2.690 2.639 2589 2.540 2494 2.448 2.404 2 362 5 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 6 5242 5.076 4917 4.767 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 4423 4.288 4.160 4039 3.922 3812 3.706 3605 3.508 3416 3.327 3242 3.161 6.733 6.463 6210 59715747 5 535 5.335 5.146 4.968 4.799 4.639 4487 4.344 4.207 4078 3.954 3.837 3.726 3.619 3.518 3.421 3.329 9 7435 7.108 6.802 6.515 6.247 5995 5.759 5537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 10 8.111 7.722 7.360 7024 6.710 6.418 6.145 5889 5.650 5426 5.216 5.019 4833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 11 8.760 8.306 7887 7.499 7.139 6.805 6.495 6.207 5.938 5687 5.453 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 12 9.385 8863 8.384 7.943 7.536 7.161 6.814 6492 6.194 5918 5660 5421 5.197 4.988 4.793 4611 4439 4.278 4.127 3.985 3851 3.725 13 9986 9394 8853 8.358 7.904 7.487 7.103 6.750 6.424 6122 5842 5.583 5.342 5.118 4910 4.715 4533 4.362 4.203 4.053 3.912 3.780 14 10.563 9.899 9.295 8745 8.244 7.786 7,367 6982 6.628 6.302 6.002 5.724 5468 5.229 5.008 4.802 4611 4.432 4.265 4.108 3962 3.824 15 11.118 10.380 9.712 9.108 8.559 8.061 7,606 7.191 6.811 6.462 6.142 5847 5.575 5.324 5.092 4.876 4675 4.489 4.315 4.153 4.001 3.859 954 5.668 5405 5.162 4.938 4.730 4.536 4.357 4.189 4033 3.887 17 12.166 11.274 10.477 9763 9.122 8544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4059 3.910 12659 11.690 10.828 10059 9.372 8.756 8.201 7.702 7.250 6840 6467 6128 5818 5.534 5.273 5.033 4812 4.608 4.419 4.243 4080 3.928 19 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7839 7.366 6.938 6.550 6.198 5877 5584 5.316 5.070 4843 4.635 4.442 4.263 4.097 3.942 20 13.590 12.462 11.470 10.594 9818 9.129 8.514 7963 7.469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4460 4.279 4.110 3.954 16 11.652 10838 10.106 9.447 8851 8.313 7.824 7.379 6.974 6.604 6.265 5.9 21 14.029 12.821 11.764 10.836 10017 9.292 8.649 8075 7.562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4891 4.675 4.476 4.292 4.121 3963 22 14451 13.163 12.042 11.061 10 201 9.442 8.772 8.176 7.645 7.170 6.743 6.359 6.011 5.696 5.410 5.149 4909 4.690 4488 4.302 4.130 3.970 23 14857 13.489 12.303 11.272 10.371 9580 8.883 8266 7.718 7.230 6.792 6.399 6.044 5.723 5.432 5.167 4925 4.703 4.499 4.311 4.137 3976 24 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7.784 7.283 6.835 6.434 6.073 5.746 5451 5.182 4937 4.713 4.507 4.318 4.143 3981 25 15622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7843 7.330 6.873 6464 6.097 5.766 5.467 5.195 4948 4.721 4514 4.323 4147 3.985 26 15983 14.375 13.003 11826 10810 9929 9.161 8.488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4.956 4.728 4.520 4.328 4.151 3.988 27 16.330 14.643 13.211 11.987 10935 10027 9.237 8.548 7.943 7.409 6.935 6514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8602 7.984 7.441 6.961 6.534 6.152 5.810 5502 5.223 4.970 4.739 4528 4.335 4.157 39 29 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4531 4.337 4.159 3.994 30 17.292 15.372 13.765 12.409 11.258 10.274 9,427 8694 8.055 7.496 7.003 6.566 6.177 5.829 5.517 5.235 4979 4.746 4534 4.339 4.160 3.995 40 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4.544 4.347 4.166 3.999