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 $1,551,000 per year in net cash inflows from the turbine. The turbine would cost $4.7 million and is expected to have a 5-year useful life with no residual value. Calculate the NPV assuming the company uses a 5% hurdle rate. (Round your answer to the nearest whole dollar.) (Click the icon to view the present value of an annuity table. (Click the icon to view the present value table.) (Click the icon to view the future value of an annuity table.) (Click the icon to view the future value table.) The NPV is Reference Reference Future Value of $1 4% 14% 16% 18% Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.000 2010 3.030 4.060 5.101 2% 3% 1.000 1.000 2.020 2.030 3.060 3.091 4.122 4. 184 5.204 5.309 6.308 6.468 7.434 7.662 8.583 8.892 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 1.000 2.040 3.122 4.246 5.416 12% 1.000 2.120 3.374 4.779 6.353 1.000 2.140 3.440 4.921 6.610 8% 1.080 1.166 1.260 1.000 2.160 3.506 5.066 6.877 1.000 2.180 3.572 5.215 7.154 Periods Period 1 Period 2 Period 3 Period 4 Period 5 20% 1.000 2.200 3.640 5.368 7.442 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.14 1.301 1.48 1.689 1.92 1.360 1.469 Period 6 Period 7 Period 8 nun 6.152 7.214 8.286 nac 6.633 7.898 9.214 no 6.802 8.142 9.549 6.975 8.394 9.897 7.336 7.716 8.923 9.487 10.637 11.436 8.115 10.089 12.300 8.536 10.730 13.233 innr 8.977 11.414 14.240 9.442 12.142 15.327 9.930 12.916 16.499 Period 6 Period 7 Period 8 Period 9 1.062 1.072 1.083 1.094 1.126 1.149 1.172 1.195 1.194 1.230 1.267 1.305 1.265 1.340 1.316 1.407 1.369 1.477 1.423 1.551 1.419 1.504 1.594 1.689 1.587 1.772 1.714 1.949 1.851 2.144 1.999 2.358 1.974 2.211 2.476 2.773 2.19! 2.50: 2.85 3.25 rin 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 $1,551,000 per year in net cash inflows from the turbine. The turbine would cost $4.7 million and is expected to have a 5-year useful life with no residual value. Calculate the NPV assuming the company uses a 5% hurdle rate. (Round your answer to the nearest whole dollar.) (Click the icon to view the present value of an annuity table. (Click the icon to view the present value table.) (Click the icon to view the future value of an annuity table.) (Click the icon to view the future value table.) The NPV is Reference Reference Future Value of $1 4% 14% 16% 18% Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.000 2010 3.030 4.060 5.101 2% 3% 1.000 1.000 2.020 2.030 3.060 3.091 4.122 4. 184 5.204 5.309 6.308 6.468 7.434 7.662 8.583 8.892 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 1.000 2.040 3.122 4.246 5.416 12% 1.000 2.120 3.374 4.779 6.353 1.000 2.140 3.440 4.921 6.610 8% 1.080 1.166 1.260 1.000 2.160 3.506 5.066 6.877 1.000 2.180 3.572 5.215 7.154 Periods Period 1 Period 2 Period 3 Period 4 Period 5 20% 1.000 2.200 3.640 5.368 7.442 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.14 1.301 1.48 1.689 1.92 1.360 1.469 Period 6 Period 7 Period 8 nun 6.152 7.214 8.286 nac 6.633 7.898 9.214 no 6.802 8.142 9.549 6.975 8.394 9.897 7.336 7.716 8.923 9.487 10.637 11.436 8.115 10.089 12.300 8.536 10.730 13.233 innr 8.977 11.414 14.240 9.442 12.142 15.327 9.930 12.916 16.499 Period 6 Period 7 Period 8 Period 9 1.062 1.072 1.083 1.094 1.126 1.149 1.172 1.195 1.194 1.230 1.267 1.305 1.265 1.340 1.316 1.407 1.369 1.477 1.423 1.551 1.419 1.504 1.594 1.689 1.587 1.772 1.714 1.949 1.851 2.144 1.999 2.358 1.974 2.211 2.476 2.773 2.19! 2.50: 2.85 3.25 rin