The following data pertain to an investment proposal: Cost of the investment Annual cost savings Estimated salvage value Life of the project Discount rate Present value of $1: EXHIBIT 118-1 Present Value of 51: Periods 2 10 IN 6% 7 $48,000 $14,000 $4,000 5 years 10% 4% 0.962 0.952 0.943 0.935 0.006 0.917 0.909 0.901 0.925 0.907 0.090 0.873 0.009 0.864 0.840 0.816 0.855 0.823 0.792 0.763 0.822 0.784 0.747 0.713 9% 10% 11% 12% 12% 0.790 0,746 0.705 0.066 0.760 0.711 0.865 0.823 0.731 0.877 0.627 0.582 0.703 0.645 0.592 0.544 0.678 0.614 0.558 0.508 PV of an annuity: 0.893 0.885 0.857 0.842 0.826 0.012 0.797 0.783 0.794 0.772 0.751 0.731 0.712 0.603 0.735 0.708 0.883 0.659 0.636 0.613 0.081 0.660 0.621 0.503 0.567 0.543 0.030 0.506 0.564 0.595 0.507 0.400 0.583 0.547 0.513 0482 0452 0.425 0.540 0.502 0.467 0434 0.404 0.376 0.500 0.460 0.424 0.301 0.361 0.333 0.460 0.422 0.386 0.352 0.322 0.295 EXHIBIT 118-2 Present Value of an Annuity of $1 in Arrears: Periods 416 5% e 7% 196 9% 10% 11% 12% 13% 2 3 4 S 0.902 0.952 0.043 0.935 0.926 1.888 1.850 1833 1.808 1.783 2.775 2.723 2673 2024 2577 3.630 3.546 3465 3.387 3.312 4.452 4.329 4212 4.100 3.903 0.917 0.909 0.901 0.803 0.895 1.750 1.736 1.713 1.000 1.668 2531 2487 2444 2402 2.361 3.240 3.170 3.102 3.037 2.974 3.890 3.791 3.606 3.605 3.517 6 7 B 10 5.242 5.076 4.917 4767 4623 6.002 5.706 5.582 5.380 5200 6.733 6.463 6.210 5.971 5.747 7.435 7.108 6.602 6.515 6.247 8.111 7.722 7.300 7.024 6.710 4486 4.355 4.231 4.111 3.900 5.033 4.860 4.712 4.564 4.423 5535 5.335 5.146 4.968 4.799 5.995 5750 5.537 5.328 5.132 6418 6.145 5.880 5.660 5.426 The net present value of the proposed investment is closest to: 7,558 30,000 5,074 2.484