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7. S, Inc. plans to purchase equipment with a cost of $148,000. The company expects annual net cash inflows from the equipment of $34,200. The equipment has an estimated life of 8 years, no estimated salvage life, and a required rate of return is 6%. The payback period for the equipment is closest to? Take your answer to two places to the right of the decimal point. 2 points 8. Dot Taylor has just won the Lotto. Her prize pays $78,400 at the end of each year for 4 years. In addition, she will receive a one-time payment of $470,400 at the end of 4 years. Using the following factors at 9%, what amount has Dot really won in the Lotto? (round to the nearest dollar) 2 points Type of Cash Flow Periods Interest Rate Factor PV of $1 4 9% 0.7084 FV of $1 4 9% 1.4116 PV ordinary annuity 4 9% 3.2397 FV ordinary annuity 4 9% 4.5731 PV annuity due 4 9% 3.5313 9. Given a present value factor of 0.8548, assuming a 4% discount rate, the present value of $40,000 payment received in 4 years is 2 PointsAPPENDIX 9.1 Present value of $1 received in n periods. 12% 13% 14% 16% 18% 20% Periods 4% 5% 6% 7% 8% 9% 10% 11% 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8621 0.8475 0.8333 0.7432 0.7182 0.6944 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.6407 0.6086 0.5787 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6587 0.6355 0.6133 0.5921 0.5523 0.5158 0.4823 0.8548 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 0.5194 0.4761 0.4371 0.4019 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4104 0.3704 0.3349 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3538 0.3139 0.2791 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3050 0.2660 0.2326 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 0.2630 0.2255 0.1938 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2267 0.1911 0.1615 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.6246 0.2366 0.5568 0.4440 0.1954 0.4970 0.1619 0.1346 0.3971 0.3555 0.3186 0.2858 0.2567 0.6006 0.5303 0.2307 0.4688 0.2076 0.4150 0.3677 0.1685 0.3262 0.2897 0.1372 0.1122 0.2575 0.5775 0.5051 0.2292 0.4423 0.2042 0.3878 0.1821 0.3405 0.2992 0.1452 0.2633 0.2320 0.1163 0.0935 0.5553 0.4810 0.2046 0.4173 0.3624 0.1807 0.3152 0.2745 0.1597 0.2394 0.1252 0.0985 0.2090 0.0779 0.1827 0.1599 0.1401 0.1079 0.0835 0.0649 16 0.5339 0.4581 0.3936 17 0.3387 0.5134 0.2919 0.4363 0.2519 0.2176 0.3714 0.1883 0.3166 0.1631 0.1415 0.1229 0.0930 0.4936 0.2703 0.2311 0.3503 0.1978 0.0708 0.0541 0.4155 0.2959 0.1696 0.1456 0.1252 0.4746 0.1799 0.1078 0.3957 0.2502 0.2120 0.3305 0.1528 0.0802 0.1300 0.0600 0.1108 0.0451 0.2765 0.4564 0.3769 0.2317 0.1945 0.0691 0.0508 0.3118 0.2584 0.1635 0.1377 0.0946 0.1161 0.0981 0.0376 $1 0.2145 0.1784 0.1486 0.1240 0.0829 0.0596 0.1037 0.0431 PVn.1 = 0.0313 (1+ 1 ) " 0.0868 0.0728 0.0514 0.0365 0.0261End-of-Chapter Homework 9-33 APPENDIX 9.2 Present value of an annuity of $1 per period. 16% 18% 20% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% Periods 4% 0.8621 0.8475 0.8333 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 1.8334 1.8080 1.7833 1.7591 1.7355 1.7125 1.6901 1.6681 1.6467 1.6052 1.5656 1.5278 1.8861 1.8594 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4868 2.4437 2.4018 2.3612 2.3216 2.2459 2.1743 2.1065 -NM + in 3.6299 3.5460 3.4651 3.3872 3.3121 3.2397 3.1698 3.1024 3.0373 2.9745 2.9137 2.7982 2.6901 2.5887 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 3.7907 3.6959 3.6048 3.5172 3.4331 3.2743 3.1272 2.9906 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 4.3553 4.2305 4.1114 3.9975 3.8887 3.6847 3.4976 3.3255 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 4.8684 4.7122 4.5638 4.4226 4.2883 4.0386 3.8115 3.6046 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 5.3349 5.1461 4.9676 4.7988 4.6389 4.3436 4.0776 3.8372 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 5.7590 5.5370 5.3282 5.1317 4.9464 4.6065 4.3030 4.0310 8.1109 7.7217 7.3601 7.0236 6.7101 6.4177 6.1446 5.8892 5.6502 5.4262 5.2161 4.8332 4.4941 4.1925 8.7605 8.3064 -7.8869 7.4987 7.1390 6.8052 6.4951 6.2065 5.9377 5.6869 5.4527 5.0286 4.6560 4.3271 9.3851 8.8633 8.3838 7.9427 7.5361 7.1607 6.8137 6.4924 6.1944 5.9176 5.6603 4.7932 9.9856 5.1971 4.4392 9.3936 8.8527 8.3577 7.9038 7.4869 7.1034 6.7499 6.4235 10.5631 6.1218 5.8424 5.3423 4.9095 4.5327 9.8986 9.2950 8.7455 8.2442 7.7862 7.3667 6.9819 11.1184 10.3797 6.6282 6.3025 6.0021 9.7122 5.4675 5.0081 4.6106 9.1079 8.5595 8.0607 7.6061 7.1909 6.8109 6.4624 6.1422 5.5755 5.0916 4.6755 11.6523 10.8378 10.1059 12.1657 9.4466 8.8514 8.3126 7.8237 11.2741 10.4773 7.3792 6.9740 6.6039 9.7632 9.1216 6.2651 5.6685 5.1624 4.7296 12.6593 11.6896 10.8276 10.0591 9.3719 8.5436 8.0216 7.5488 7.1196 6.7291 6.3729 5.7487 5.2223 4.7746 13.1339 12.0853 11.1581 10.3356 8.7556 8.2014 7.7016 7.2497 6 9.6036 8.9501 6.8399 6.4674 5.8178 5.2732 4.8122 8.3649 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 8.5136 7.9633 7.8393 7.3658 6.9380 6.5504 5.8775 5.3162 4.8435 7.4694 $1 - 7.0248 6.6231 5.9288 5.3527 4.8696 PVAn! = (1 + i )"