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The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5.

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The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) Initial investment Amount of net cash return $(72,000) $(61,000) 12,800 12,800 12,800 12,800 12.800 12,800 $ 8.456 1.14 $(137,000) 46,100 46,100 46,100 46,100 46,100 $(150,000) 14,400 28,800 43,200 57,600 72,000 28,800 28,800 28,800 17,300 (288,000) 87.000 87,000 44,000 44,000 44,000 44,000 $ 22,487 6-10 Per year NPV (12% discount rate) Present value ratio - Required: a. Calculate the net present value of projects B, C, and D, using 12% as the cost of capital for Scott Inc. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Project Net Present Value The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) C $(72,000) Initial investment Amount of net cash return $(61,000) 12,800 12,800 12,800 12,800 12,800 12.800 $ 8,456 1.14 $(137,000) 46,100 46,100 46,100 46,100 46,100 $(150,000) 14,400 28,800 43,200 57,600 72,000 28,800 28,800 28,800 17,300 $(288,000) 87,000 87,000 44,000 44,000 44,000 44,000 $ 22,487 6-10 Per year NPV (126 discount rate) Present value ratio b. Calculate the present value ratio for projects B, C, D, and E. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project Present Value Ratio C TABLE 6.4 FACTORS FOR CALCULATING THE PRESENT VALUE OF S1 Discount Rate . of 2% 4% 6% 8% 10% 12% 0.980 0.9615 0.9434 0.9259 0.9091 0.8929 0.961 0.9246 0.8900 0.8573 0.8264 0.7972 0.942 0.8890 0.8396 0.7938 0.7513 0.7118 0.924 0.8548 0.7921 0.7350 0.6830 0.6355 0.906 0.8219 0.7473 0.6806 0.62090.5674 0.888 0.7903 0.7050 0.6302 0.5645 0.5066 0.871 0.7599 0.6651 0.5835 0.5132 0.4523 0.853 0.7307 0.6274 0.5403 0.4665 0.4039 0.837 0.7026 0.59190.5002 0.4241 0.3606 0.820 0.6756 0.5584 0.4632 0.3855 0.3220 0.804 0.6496 0.5268 0.42890.3505 0.2875 0.788 0.6246 0.4970 0.3971 0.3186 0.2567 0.773 0.6006 0.4688 0.3677 0.2897 0.2292 0.758 0.5775 0.4423 0.3405 0.2633 0.2046 0.743 0.5553 0.4173 0.3152 0.2394 0.1827 0.728 0.5339 0.3936 0.2919 0.2176 0.1631 0.714 0.5134 0.3714 0.2703 0.1978 0.1456 0.700 0.4936 0.3503 0.2502 0.1799 0.1300 0.686 0.4746 0.3305 0.2317 0.1635 0.1161 0.673 0.4564 0.3118 0.2145 0.1486 0.1037 0.660 0.4388 0.2942 0.1987 0.1351 0.0926 0.647 0.4220 0.2775 0.1839 0.1228 0.0826 0.634 0.4057 0.2618 0.1703 0.1117 0.0738 0.622 0.3901 0.2470 0.1577 0.1015 0.0659 0.610 0.3751 0.2330 0.1460 0.0923 0.0588 0.552 0.3083 0.1741 0.0994 0.0573 0.0334 0.500 0.2534 0.1301 0.0676 0.0356 0.0189 0.453 0.2083 0.0972 0.0460 0.0221 0.0107 0.410 0.1712 0.0727 0.0313 0.0137 0.0061 0.372 0.1407 0.0543 0.0213 0.0085 0.0035 14% 0.8772 0.7695 0.6750 0.5921 0.5194 0.4556 0.3996 0.3506 0.3075 0.2697 0.2366 0.2076 0.1821 0.1597 0.1401 0.1229 0.1078 .0946 0.0829 0.0728 0.0638 0.0560 0.0491 0.0431 0.0378 0.0196 0.0102 0.0053 0.0027 0.0014 16% 0.8621 0.7432 0.6407 0.5523 0.4761 0.4104 0.3538 0.3050 0.2630 0.2267 0.1954 0.1685 0.1452 0.1252 0.1079 0.0930 0.0802 0.0691 0.0596 0.0514 0.0443 0.0382 0.0329 0.0284 0.0245 0.0116 0.0055 0.0026 0.0013 0.0006 18% 20% 0.8475 0.8333 0.7182 0.6944 0.6086 0.5787 0.5158 0.4823 0.4371 0.4019 0.3704 0.3349 0.31390.2791 0.2660 0.2326 0.2255 0.1938 0.1911 0.1615 0.1619 0.1346 0.1372 0.1122 0.1163 0.0935 0.0985 0.0779 0.0835 0.0649 0.0708 0.0541 0.0600 0.0451 0.0508 0.0376 0.0431 0.0313 0.0365 0.0261 0.0309 0.0217 0.0262 0.0181 0.0222 0.0151 0.0188 0.0126 0.0160 0.0105 0.0070 0.0042 0.0030 0.0017 0.0013 0.0007 0.0006 0.0003 0.0003 0.0001 0 TABLE 6.5 FACTORS FOR CALCULATING THE PRESENT VALUE OF AN AN OF . of riods 1 0 WOO E Discount Rate 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% .980 0.9615 0.9434 0.9259 0.9091 0.8929 0.8772 0.8621 0.8475 0.8333 1.942 1.8861 1.8334 1.7833 1.7355 1.6901 1.6467 1.6052 1.5656 1.5278 2.884 2.7751 2.6730 2.5771 2.4869 2.4018 2.3216 2.2459 2.1743 2.1065 3.808 3.6299 3.4651 3.3121 3.1699 3.0373 2.9137 2.7982 2.6901 2.5887 4.713 4.4518 4.2124 3.9927 3.7908 3.6048 3.4331 3.2743 3.1272 2.9906 5.601 5.2421 4.91734.6229 4.1114 3.8887 3.6847 3.4976 3.3255 6.472 6.0021 5.5824 5.2064 4.8684 4.5638 4.2883 4.0386 3,8115 3.6046 7.325 6.7327 6.2098 5.7 4.9676 4.6389 4.3436 4.0776 3.8372 8.162 7.4353 6.8017 6.2469 5.3282 4.9464 4.6065 4.3030 4.0310 8.983 8.11097.3601 6.7101 6.1446 5.6502 5.2161 4.8332 4.4941 4.1925 9.787 8.7605 7.8889 7.1390 6.4951 5.9377 5.4527 5.0286 4.6560 4.3271 10.575 9.3851 8.3838 7.5361 6.8137 6.1944 5.6603 5.1971 4.7932 4.4392 11.348 9.9856 8.8527 7.9038 7.1034 6.4235 5.8424 5.34234.9095 4.5327 12.106 10.5631 9.2950 8.2442 7.3667 6.6282 6.0021 5.4675 5.0081 4.6106 12.849 11.1184 9.7122 8.5595 7.6061 6.8109 6.1422 5.5755 5.0916 4.6755 13.578 11.6523 10.10598.8514 7.8237 6.9740 6.2651 5.6685 5.1624 14.292 12.1657 10.4773 9.1216 8.0216 7.1196 6.3729 5.7487 5.2223 4.7746 14.992 12.6593 10.8276 9.37198.2014 7.2497 6.4674 5.8178 5.2732 4.8122 15.678 13.1339 11.1581 9.6036 8.3649 7.3658 6.5504 5.8775 5.3162 4.8435 16.351 13.5903 11.4699 9.8181 8.5136 7.4694 6.6231 5.9288 5.3527 4.8696 17.011 14.0292 11.7641 10.0168 8.6487 7.5620 6.6870 5.9731 5.3837 4.8913 17.658 14.4511 12.0416 10.2007 8.7715 7.6446 6.7429 6.0113 5.4099 4.9094 18.292 14.8568 12.3034 10.3711 8.8832 7.7184 6.7921 6.0442 5.4321 4.9245 18.914 15.2470 12.5504 10.5288 8.9847 7.78436.8351 6.0726 5.4509 4.9371 19.523 15.6221 12.7834 10.6748 9.0770 7.8431 6.87296.0971 5.4669 4.9476 22.396 17.2920 13.7648 11.2578 9.4269 8.0552 7.0027 6.17725.5168 4.9789 24.900 18.6646 14.4982 11.6546 9.6442 8.1755 7.0700 6.2153 5.5386 4.9915 27 355 19.7928 15.0463 11.9246 9.7791 8.2438 7.1050 6.2335 5.54824.9966 29.490 20.7200 15.4558 12.1084 9.8628 8.2825 7.1232 6.2421 5.55234.9986 31.424 21.4822 15.7619 12.2335 9.9148 8.3045 7.1327 6.2463 5.5541 4.9995 O & 88 8% 9%8

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