The following information relates to three independent investment decisions, each with a 10year life and no salvage value. Using the present value tables in Exhibits 263 and 264, compute the missing information pertaining to each investment proposal. (Round "PV factors" to 3 decimal places and your nal answers to the nearest whole dollar amount.) Investment cost $ 141,250 $ 84,640 Incremental annual cash inows 15,000 37,000 18,000 Incremental annual cash outows 6,300 6,500 Discount rate yielding a net present value of zero 10 % 12 % % Present Value of $1 Due in n Periods* EXHIBIT 26-3 Number of Discount Rate Present Value of $1 Payable Periods in n Periods (n) 1% 11/2% 5% 6% 8% 10% 12% 15% 20% .990 .985 .952 .943 .926 .909 .893 870 .833 980 .971 .907 .890 .857 .826 .797 .756 .694 971 .956 .864 .840 .794 .751 .712 .658 .579 .961 .942 823 792 735 683 .636 .572 .482 CO VOUT A W N - 951 928 .784 747 681 621 .567 497 .402 942 915 .746 705 .630 .564 .507 .432 335 933 .901 .711 .665 583 .513 .452 .376 .279 923 .888 .677 .627 540 .467 .404 .327 .233 9 .914 .875 .645 .592 .500 .424 .361 284 194 10 905 .862 .614 .558 463 .386 .322 .247 . 162 20 .820 .742 .377 .312 .215 . 149 . 104 061 .026 24 788 .700 .310 .247 . 158 . 102 .066 .035 .013 36 699 .585 . 173 . 123 .063 .032 .017 .007 .00 1 "The present value of $1 is computed by the formula p = 1/(1 + ijn, where p is the present value of $1, / is the discount rate, and n is the number of periods until the future cash flow will occur. Amounts in this table have been rounded to three decimal places and are shown for a limited number of periods and discount rates. Many calculators are programmed to use this formula and can compute present values when the future amount is enteredPresent Value of $1 to Be Received Periodically for n Periods EXHIBIT 26-4 Present Value of a $1 Annuity Number of Discount Rate Receivable Each Period for n Periods (n) 1% 11/2% 5% 6% 8% 10% 12% 15% 20% Periods 0.990 0.985 0.952 0.943 0.926 0.909 0.893 0.870 0.833 1.970 1.956 1.859 1.833 1.783 1.736 1.690 1.626 1.528 2.941 2.912 2.723 2.673 2.577 2.487 2.402 2.283 2. 106 3.902 3.854 3.546 3.465 3.312 3. 170 3.037 2.855 2.589 ON YOULAWN- 4.853 4.783 4.329 4.212 3.993 3.791 3.605 3.352 2.991 5.795 5.697 5.076 4.917 4.623 4.355 4.111 3.784 3.326 6.728 6.598 5.786 5.582 5.206 4.868 4.564 4.160 3.605 7.652 7.486 6.463 6.210 5.747 5.335 4.968 4.487 3.837 8.566 8.361 7.108 6.802 6.247 5.759 5.328 4.772 4.031 10 9.471 9.222 7.722 7.360 6.710 6.145 5.650 5.019 4. 192 20 18.046 17. 169 12.462 11.470 9.818 8.514 7.469 6.259 4.870 24 21.243 20.030 13.799 12.550 10.529 8.985 7.784 6.434 4.937 36 30.108 27.661 16.547 14.621 11.717 9.677 8.192 6.623 4.993