The Savona Company is considering investing in a wind turbine to generate its own power. Any unused power will be sold back to the local utility company. Between cost savings and new revenues, the company expects to generate $730,000 per year in net cash inflows from the turbine. The turbine would cost $4 million and is expected to have a 20-year useful life with no residual value. Calculate the NPV assuming the company uses a 12% hurdle rate. (Round your answer to the nearest whole dollar.) Reference Reference Periods Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 | 0.926 0.909 0.893 0.877 0.862 0.847 | 0.833 Period 2 1.970 | 1.942 | 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246| 2.174 2.106 Period 4 3.902 | 3.808 | 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 | 2.589 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 | 3.812 3.605 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 | 4.031 Period 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 10 Period 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 11 Period 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 12 Period 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 13 Period 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 | 4.611 14 Present Value of $1 Periods 1% 2% 3% 4% 5% 20% 6% 8% 10% 12% 14% 16% 18% 0.952 | 0.943 | 0.926 | 0.909 | 0.893 | 0.877 | 0.862 | 0.847 | 0.83 0.907 | 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.69 Period 1 0.990 | 0.980 | 0.971 | 0.962 Period 2 0.980 | 0.961 0.943 | 0.925 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.57 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.4 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.40 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.33 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.27 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.23 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 | 0.424 0.361 0.308 0.263 0.225 0.19 Period 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.16 10 Period 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.13 11 12 Period 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.11 Period 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.09 13 Period 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 | 0.205 | 0.160 | 0.125 0.099 0.07 14 Future Value of Annuity of $1 Future Value of $1 Periods 1% 2% 3% 4% 5% Period 1.000 1.000 1.000 1.000 1.000 6% 8% 1.000 1.000 10% 12% 1.000 1.000 14% 1.000 16% 1.000 18% 1.000 1.000 20% 1 2 Period 2.010 2.020 2.030 2.040| 2.050 2.060 2.080 2.100 | 2.120 2.140 2.160 2.180 2.200 Period 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 3 Period 4.060 4.122 4.184 4.246 4.310 4.375 4.506 | 4.641 4.779 4.921 5.066 5.215 5.368 4 Period 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 5 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.010 | 1.020 | 1.030 | 1.040 | 1.050 | 1.060 | 1.080 | 1.100 | 1.120| 1.140 | 1.160 1.180 1.200 Period 2 1.020 | 1.040 1.061 1.082 | 1.103 | 1.124 1.166 | 1.210 1.254 1.300 1.346 1.392 1.440 Period 3 1.030 | 1.061 1.093 1.125 1.158 1.191 1.260 1.331 | 1.405 | 1.482 1.561 1.643 1.728 Period 4 1.041 1.082 1.126 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 Period 8 1.083 | 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 Period 9 1.094 1.195 1.305 1.423 1.551| 1.689 1.999 2.358 2.773| 3.252 3.803 4.435 5.160 Period 1.105 1.219 1.344 1.480 | 1.629 1.791 | 2.159 2.594 3.106 3.707 4.411 5.234 6.192 Period 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 10 16 Period Period 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.91 11 7 Period Period 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.49 12 8 Period Period 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.79 13 9 10 Period 1.116 1.243 1.384 1.539 1.710 1.898 | 2.332 2.853 3.479 4.226 5.117 6.176 7.430 1.127 1.268 1.426 1.601 1.796 2.012 2.518 3.138 | 3.896 4.818 5.936 7.288 8.916 1.138 1.294 1.469 1.665 | 1.886 2.133 | 2.720 3.452 | 4.363 5.492 6.886 8.599 10.699 1.149 1.319| 1.513 1.732 | 1.980 2.261 | 2.937 | 3.797 4.887 6.261 7.988 10.147 12.839 Period 10.462 10.950 11.46412.006 12.578 13.181 | 14.487 15.937 17.549 19.337 21.321 23.521 25.95 14