The A. Ducky Corporation operates a beautiful Duck pond. A Ducky Corporation had the following expenses related to this Duck pond that may or may not be appropriately capitalized. Purchase price = $750,000 Pond preparation = 200,000 After A. Ducky Corporation has finished using this Duck pond that it has built, (useful life estimated to be 6 years) they will be required to restore the property back to its original condition. The engineers have provided us with the following two cash flow possibilities for the restoration costs: Projection #1 Cash outflow = $ 400,000 Probability = 30% Projection #2 Cash outflow = $520,000 Probability = 70% A. Duck Corporation has a credit adjusted, risk-free rate of interest of 8%. Required: Using the PV/FV tables from your text book, determine the cost that A. Ducky should capitalize for this Duck pond. TABLE 1 Future Value of $1 FV - 51(1+0 6.09 7.048 06 90 10.05 19.04 20.04 120000 100000 100000 110000 1.12000 111000 12210 112160 1000 118810 1 290 1.21000 14.00 w 109 1.546 2.09 2.59 304 3.54 40% 4.5% 5.04 5.546 1 101000 101500 102000 10500 10000 1000 11000 11500 105000 105500 21.2010 1.03022 101010 1.0506) 1.00090 1.07123 1.05100 100205 1 10050 111101 3103030 104568 1 06121 107689 109273 1 102 12456 14137 115761 11704 4 1.04060 1061 36 108241 1.10381 112551 114792 1606 119252 121551 1232 10101107724110101 113141 115927 113700 121665 1.24618 127628 1300 144000 107000 116490 122501 111010 1.40255 1 19109 127 133100 1.16640 1.25071 1 369 145933 146410 116765 LSTOT 1 6506 1.57352 1418 1 51862 2 OTTO 1.33523 1 61051 1.76714 2.95 1.50073 1.60570 6 106152109344 112616 115909 1.19105 122926 126532 130220 130010 137684 7 107214 10284 114869 110 122987127226 1.31593130010140710 145465 31.08286 112549 117166 121840 1.26577 131681 16857 142210 1.47746 153466 9 1.09369 1149 119500 1.24886 130477 136290 143331 148610 1.55133161909 101 10162 1.10054 121899 1.2800 11492 14100 148024 155297 1.63889 170614 1.41552 150365 159333 1009 151687 1.67710 ITUR 1.85093 1.99256 1.99900 2.17189 2.36736 1.77156 1952 2.140359 235195 171819 117041 207010 22101 230154 247390 255104 2.77300 310585 356315 622982 136 51992 1.29055 156715 2.59374 6.19174 21045 235219 11 1.11567 1.17795 124337 1.31209 138423 14598 159945 163.285 1.71094 10209 1980 12 1 12601 1.19562 1.261241.3649 142576 151107 160103169568 179586 1 90121 2012.00 13 113809 1.21355 129301 137851 146853 1.56386 1.66507 177220 1.885632.00577 2.13293 14 1.14947 1.23176 131948 141297 151259 1.6189173168 185194 19799) 211600 2.20010 15 116097125021 1.450 144850 155797 1.67535 100M 193526 2.07893 223348239650 2331642.58043 201266 2.71962 350 299719 3.34173 3.17217 3.6024 2.5112 3.13843 145227 3.79750 617725 315176 347655 349845 319598 3120 1019 431044 43711 475459 547357 741005 191610 106 2.57853 2.73903 1231911 15.4702 397081 659097 2.95256 3.15 105 3.70001 1140143 22.18611 16 117258 126199 137279 148451 160471 73999 17208209217 216347235536 254035 7 1.15430 1.25102140024 1.52163 1.05205 1.79468 194790211318 2.29202 2.45430 269277 18 1.19615 1.30734 1.42575 155966 1.70943 1.8579 202502 220348 2.40662 2.62147 20.5414 19 1.20811 1.12695 1.45681 1.59565 175351 1.92250 2.10655 210786 2.52095 2.76565309560 20132019 1.34686 1.48995 169862 1.10611158979 2.19112 241171205330 291776 3.20714 357993 437761 471712 5.34166 3.60441 3.9900 4.3157 460096 5057 5.53992 6.11591 STORY 613019 589109 616604 6.54355 76197 7.26334 61270 100331 9.6469 26,61333 31 9400 361053 3. 18.33760 5.0385 21 123239 1.36706 151567 167958 186029 205963 2.27877 252024 2.71596 307223 139956 414056 6.1058 240025 194917 10 OSS 460051 25 1.25743 1.45095 1.64061 85394 2.09378236374 206554 3.00543 3.38635381339 547743 680548862301101471356546 1700000 9599632 10 1.1785 156306 181136 2.09757242726 2.10679 334340 74532 4.32194 498395 5.74349 761226 1006265 13.70768 17 449:40 22.89230 29.99992 23737031 10 1.46686 1.814022016 263506 3.76204 3.95920 4.80102581616 701999 3.51331 10.28572 149746 21.724523100942 45.2592665.000 93.05087 146977160 TABLE 2 Present Value of $1 51 PV (1+ w 1094 1.596 2.096 2.596 3,0% 3.54 4.0% 4.59 5.0% 5546 6,046 7.046 8.044 9.04 10.09 11.09 12.09 1 099010 098522 091019 097561 0.97087 096611 096154 095614 0.95231 094787 09340 0.93458 0.9259309174 0.90909090090 096 033333 3098030 097066 096117 095161 094260 0.93351 092456 091573 090703 0.19545 0.89000 0.87344 085734 0.14165 0336450.11163 0.19719 06044 30.97059 0.95632 0.94232 0.92860 091514 0.90194 088900 0.876300.16384 0.85161 083962 01630079383 077213 0.75133 0.73119 071178 0.57870 4096098 0.94218 092385 0.90595 0.88549 0.87144 085480 0.33856 080210 0.80722 0.79209 0.7690 07350) 070843 06330106573063552043025 5 0.95147 0.92826 090573 088385 086261084197052193 0 80345 0.78353 076513 0.74726 0.71299 068053 0603 06209205934556743040103 6 0.94205 0.91454 0.88797 0.862.30 0.83745 0.81350 0.79031 0.76790 0.74622 0.72535 0.76496 0.66634 0.63017 0.59617 0.56417 0.33464 0.50663 035490 7 093272 0.90103 0.87056 084127 081309 0.73599 0.75992 0.73483 0.71068 0.68744 060506 062275 0:58349 0.54703 0.51316 0.48166 0.45335 027900 8 0.92348 0.85771 0.85349 0.82075 0.78941 0.75941 0.73009 0.70319 067684 0.65160 062741 0.58201 054027 0.50137 046651 0.0193 0.4056 023357 9 091434 0.87459 0.83676 0.80073 0.76642 0.73373 0.70259 067290 064461 0.61763 059190 0.54393 0.50035 04606042410 0.39092 0.16061 0:19381 10 090529 0.86167 082035078120 0.74409 0.70892 0.67556 0.64393 061391 0.58543 0.55839 050835 0.46319 0.42241 035554 015211 0.37197 0.16151 110.896.32 0.84893 0.80426 0.76214 0.72242 0.65495 0.64958 0.61620 0.58468 0.85491 0.52679 0.47500 0.42888 0.38753 0.35040 031728 0.28745 0.13450 12 088745 083639 0.78849 0.74356 070138 066178 0.63460 0.58966 0.55684 052598 0.49697 0.44401039711 0.35553 031863 0.28584 025661 0.11216 13 0.87866 082403 0.77303 0.72542 0.68095 0.639400.00057 0.56427 053032 0.49856 0.46854 041496036770 0.32618 028906 0.25751 0.22917 009346 14 0.86996 0.81185 0.75785 0.70773 0.66112 0.61778 0.57748 053997 0.50507 0.47257 0.44230 0.38783 0340-46 029925 0.26333 023199 0.2042007789 15 086135 0.79985 0.74301 0.69047 0.64186 0.59689 0.55526 0.51672 0.48102 0.44793 041727 0.36245 031524 0 27454 023990 20900018270. 006491 16 0.85282 0.78803 0.72845 0.67362 0.62317 0.57671 0.53391 0.49447 0.45811 0.43458 0.39365 0.33873 0.29189 0.25187 0.31763 0.18819 0.16312 0.65409 17 0.84438 0.77639 0.71416 0.65720 0.60502 0.55720 0.51337 047318 0.43630 0:40245 0.37136 0.31657 0.27027 023107 019754 016963 014564 0.04507 18 0.83602 0.76491 0.70016064117 0:58739 053836 0.49363 0.45280 0.41552 038147 0.35034 0.29586 0.25025 0.21199 0.17986 015222 0.13004 003756 19 0.82774 0.75361 0,68643 0,62553 0.57029 0.52016 0:47464 0.43330 0.39573 0.36158 033051 0.27651 023171 0.19449 016351 0.1376 0.11611003130 20 051954 0.74247 0.67297 0.61027 0.55368 0.50257 0.45639 0.41464 0.37689 034273 0.31180 0.25842 021455 0.17543 0.14864 0.12403 010367 0.02608 21 0.81143 0.73150 0.65978 0.59539 0.53755 0.48557 0.43883 0.39679 0.35894 0_32486 0.29416 0.24151 0.19866 0.16370 0.13513 0.11174 0,09256 0.02174 24 078757 0.69954062172 0.55288 0.49193 0.43796 0.39012 0.34770 0.31007 0.27666 0.24698 019715 0.15770 0.12640 010153 0.05170 0.0658 0.01251 25 0.77977 068921 060953053939 0.47761 0.42315037512 0.33273 0.29530 0.26223 0.23300 0.16425 0.14602 0.11597 0.09230 0.07361 0.05682 0.01048 28 0.75684 065910 0.57437 0 50088 0.43708 038165 033348 0.29157 025509 0.22332 0.19563 015040 0.11591 0.08955 0.06934 0.05382 0.04187 0.00607 29 0.74934 0.64936 0.56311 0.48866 0.42435 036875 032065 0.27902024295 021168 0.18456 0.14056 0.10733 008215 0.06304 0.04349 0.03738 0.00506 30 0.74192 0.63976 0.55207 0.47674 0.41199 0.35628 0.30832 0.26700 0.231.38 0.20064 0.17411 0.13137 0.09938 0.07537 0.05731 0.04368 0.03338 0.0041 31 0.73458 0.63031 0.54125 0.46511 0.39999 034423 0.29646 025550 0.22036 0.19018 0.16415 0.12277 0.09202 0.06915 005210 0.03935 0.02980 0.00351 40 0.67165 0.55126 0.45289 037243 030656 0.25257 0.208290.17193 0.14205 0.11746 009722 0.06678 004603 0.03184 0.02209 001533 0.01075 0.00068