The dean of the School of Fine Arts is trying to decide whether to purchase a copy machine to place in the lobby of the building. The machine would add to student convenience, but the dean feels compelled to earn an 10 percent return on the investment of funds. Estimates of cash inflows from copy machines that have been placed in other university buildings indicate that the copy machine would probably produce incremental cash inflows of approximately $17,500 per year. The machine is expected to have a three-year useful life with a zero salvage value. (Use appropriate factor(s) from the tables provided.) Required a. Use Present Value Appendix P of $1. to determine the maximum amount of cash the dean should be willing to pay for a copy b. Use Present Value Appendix PVA of S1. to determine the maximum amount of cash the dean should be willing to pay for a copy machine. (Round your final answer to 2 decimal places.) Maximum amount (PV) b. Maximum amount (PVA) TABLE 1 PRESENT VALUE OF $1 n 4% 5% 6% 7% 8% 9% 1 10% 12% 0.961538 0.952381 0.943396 0.934579 0.925926 0.917431 0.909091 0,892857 0.877193 0.862069 0.833333 14% 16% 20% 2 0.924556 0.907029 0.889996 0.873439 0.857339 0.841680 0.826446 0.797194 0.769468 0.743163 0.694444 3 0.888996 0.863838 0.839619 0.816298 0.793832 0.772183 0.751315 0.711780 0.674972 0.640658 0.578704 4 0.854804 0.822702 0.792094 0.762895 0.735030 0.708425 0.683013 0.635518 0.592080 0.552291 0.482253 5 0.821927 0.783526 0.747258 0.712986 0.680583 0.649931 0.620921 0.567427 0.519369 0.476113 0.401878 6 0.790315 0.746215 0.704961 0.666342 0.630170 0.596267 0.564474 0.506631 0.455587 0.410442 0.334898 7 0.759918 0.710681 0.665057 0.622750 0.583490 0.547034 0.513158 0.452349 0.399637 0.353830 0.279082 8 0.730690 0.676839 0.627412 0.582009 0.540269 0.501866 0.466507 0.403883 0.350559 0.305025 0.232568 9 0.702587 0.644609 0.591898 0.543934 0.500249 0.460428 0.424098 0.360610 0.307508 0.262953 0.193807 10 0.675564 0.613913 0.558395 0.508349 0.463193 0.422411 0.385543 0.321973 0.269744 0.226684 0.161506 11 0.649581 0.584679 0.526788 0.475093 0.428883 0.387533 0.350494 0.287476 0.236617 0.195417 0.134588 12 0.624597 0.556837 0.496969 0.444012 0.397114 0.355535 0.318631 0.256675 0.207559 0.168463 0.112157 13 0.600574 0.530321 0.468839 0.414964 0.367698 0.326179 0.289664 0.229174 0.182069 0.145227 0.093464 14 0.577475 0.505068 0.442301 0.387817 0.340461 0.299246 0.263331 0.204620 0.159710 0.125195 0.077887 15 0.555265 0.481017 0.417265 0.362446 0.315242 0.274538 0.239392 0.182696 0.140096 0.107927 0.064905 16 0.533908 0.458112 0.393646 0.338735 0.291890 0.251870 0.217629 0.163122 0.122892 0.093041 0.054088 17 0.513373 0.436297 0.371364 0.316574 0.270269 0.231073 0.197845 0.145644 0.107800 0.080207 0.045073 18 0.493628 0.415521 0.350344 0.295864 0.250249 0.211994 0.179859 0.130040 0.094561 0.069144 0.037561 19 0.474642 0.395734 0.330513 0.276508 0.231712 0.194490 0.163508 0.116107 0.082948 0.059607 0.031301 20 0.456387 0.376889 0.311805 0.258419 0.214548 0.178431 0.148644 0.103667 0.072762 0.051385 0.026084 TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 n 4% 5% 6% 7% 1 0.961538 0.952381 0.943396 0.934529 2 1.886095 1.859410 1.833393 1.808018 3 2.775091 2.723248 2.673012 2.624316 3.629895 3.545951 3.465106 3.387211 5 4.451822 4.329477 4.212364 4.100197 6 5.242137 5.075692 4.917324 4.766540 6.002055 5.786373 5.582381 5.389289 3 6.732745 6.463213 6.209794 5.971299 9 7.435332 7.107822 6.801692 6.515232 10 8.110896 7.721735 7.360087 7,023582 11 8.760477 8.306414 7.886875 7.498674 12 9.385074 8.863252 3.383844 7.942686 13 9.985648 9.393573 8.852683 8.357651 14 10.563123 9.893641 9.294984 8.745468 15 11.118387 10.379658 9.712249 9.107914 16 11.652296 10.837720 10.105895 9.446649 17 12.165669 11.274066 10.477260 9.763223 18 12.659297 11.689587 10.827603 10.059087 19 13.133939 12.085321 11.158116 10.335595 20 13.590326 12.462210 11.469921 10.594014 8% 0.925926 1.783265 2.527092 3.312122 3.992710 4.622880 5.206370 5.746639 6.246888 6.710081 7.138964 2.536078 7.903776 3.244237 8.559479 8.851 369 9.121638 9.371887 9.603599 9.818147 9% 10% 0.917431 0.909091 1.759111 1.735537 2.531295 2.486652 3.239720 3.169865 3.889651 3.790787 4.405919 4.355261 5.032953 4.868419 5.534019 5.334926 5.995242 5.759024 6.417658 6,144567 6.805191 6.495061 7.160725 6.813692 7.486904 7.103356 7.786150 7.366667 8.060688 7.606080 8.312558 7.823709 8.543631 8.021553 3.755625 8.201412 8.905115 8.364920 9.128546 8 513564 129 149 16% 20% 0.892857 0.877193 0.862069 0.833333 1.690051 1.646661 1,605232 1.527778 2.401831 2321632 2.245890 2.106481 3.037349 2.913712 2.798181 2.588735 3.604776 3.433081 3.274294 2.990612 4.111407 3.850668 3.684736 3.325510 4.563757 4.288305 4.038565 3.604592 4.967640 4.636864 4.343591 3.837160 5328250 4.946372 4.606544 4.030967 5.650223 5.216116 4.803227 4.192472 5.937699 5.452733 5.028644 4,327060 6.194374 5.660292 5.197107 4.439217 6.423548 5.342362 5.342334 4.532681 6.628168 6.002072 5.467529 4,610567 6.810864 6.142168 5.575456 4.675473 6.973956 6.265060 5.668497 4.729561 7.119630 6372859 5.48704 4.774634 7.249670 6.467420 5.817848 4.812195 7.365777 6.550369 5.877455 4.843496 7.469444 6.623131 5.928841 4.869580