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The Windmill Company is considering investing in a wind turbine to generate its own power. Any unused power will be sold back to the
The Windmill 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 $1,151,500 per year in net cash inflows from the turbine. The turbine would cost $4.7 million and is expected to have a 10-year useful life with no residual value. Calculate the NPV assuming the company uses a 12% hurdie rate (Round your answer to the nearest whole dollar.) Click the icon to view the present value table) (Click the icon to view the present value of an annuity 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 Present Value of $1 Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 0.962 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.952 0.943 0.926 0.909 0.893 0.877 0,862 0.847 0.833 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.683 0.636 0.592 0.552 0.516 0.482 0.621 0.567 0.519 0.476 0.437 0.402 0.564 0.507 0.456 0.410 0.370 0.335 0.513 0,452 0.400 0.354 0.314 0.279 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 Period 12 0.887 Period 13 0.879 Period 14 0.870 Period 15 0.861 Period 20 0.820 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0,601 0.530 0.469 0.368 0.577 0.505 0.442 0.340 0.555 0.481 0.417 0.315 0.456 Period 25 0.780 Period 30 0.742 Period 40 0.672 0.552 0.453 0.307 0.208 0.773 0.681 0.758 0.661 0.743 0.642 0.673 0.554 0.377 0.312 0.215 0.104 0.073 0.051 0.610 0.037 0.026 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.412) 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 0.290 0.263 0.125 0.237 0.195 0.162 0.135 0.137 0.112 0.229 0.182 0.145 0.116 0.093 0.205 0.160 0.099 0.078 0.239 0.183 0.140 0.108 0.084 0.065 0.149
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