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 $1,365,000 per year in net cash inflows from the turbine. The turbine would cost 4.2 million and is expected to have a 5-year useful lile with no residul value. Calculate NPV assuming the company uses a 10% hurdle rate.

TI12-3 (similar to) Question Help The Windmil 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 $1,365,000 per year in net cash inflows from the turbine. The turbine would cost $42 million and is expected to have a 5-year useful life with no residual value. Calculate the NPV assuming the company uses a 10% hurdegvie. (Round your answer to the nearest whole dolar) (Click the icon to view the present value of an annuity table> Click the icon to view the present value table) (Click the loon to view the future value of an annuity table) (Click the icon to view the future value tatile) The NPV 5 of 7 (4 complete) HV. Reference letve ave 12% Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 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 10 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 Period 11 10.3689.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 12 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 Period 13 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 Period 14 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 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4,870 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.8436.873 6.097 5.467 4.948 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 an Print Done GIGA Reference Present Value of $1 Periods 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 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.7180.694 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 0.579 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 0.482 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 0.402 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 0.335 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 0.279 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 0.233 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 0.194 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 0.237 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 140.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.2390.183 0.140 0.108 0.084 0.065 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 Print Done Ch 12 HW 5 of 7 (4 complete) HW Se Reference CE ur Future Value of Annuity of 51 Periods 1% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1000 1.000 1.000 1.000 Period 2 2010 2020 2030 2040 2050 2.000 2080 2.100 2.120 2.140 2160 2.180 2200 Period 3 3.000 3.000 3091 3.122 3.153 3184 3.246 3310 3.374 3.440 3.505 3.572 3.640 Period 4 40604.122 4.18442464310 4.375 4506 4.641 4779 4.921 5.088 5.215 5.368 Periods 5.101 5.204 5.309 5.416 5.526 5.637 5857 6.1056353 6610 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7336 7.7168.115 8.536 8.977 9.42 9.900 Period 7 7.2147434766278988.142 8.394 8.923 9487 10.089 10.730 19414 12.142 12916 Period 8.286 8.583 889292149.549 9.897 10.637 11435 12.300 13.233 14240 15327 16499 Period 9 9.369 9.755 10.159 10.583 11.027 11491 1248813579 14.778 16.085 17.519 19.086 20799 Period 10 10.462 10.950 11464 12006 12578 13.181 1448715.937 17.549 19.337 21321 23.521 25.950 Period 11 11.567 12.16912808 13486 14 207 14.972 16,645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12 12 683 13.412 14.192 15.026 15917 16,870 18.977 21.384 24.133 27.271 30850 34,931 39.581 Period 13 13.809 14.680 15.618 16.627 17713 18.882 21495 24.523 28.029 32.089 36.786 42219 43.497 Period 14 14,947 15974 17.086 18292 19.599 2101524215 27.97532393 37581 43.672 50.818 59.196 Period 15 16 097 17.283 18.599 20.024 29.579 23 276 27.152 31.772 37.280 43842 51.650 60.965 72.035 Period 20 22.019 24.297 26.870 29.778 33066 36.786 45.762 57.27572052 91.025 115380 146628 186.688 Period 25 28 243 3203036.459 41.646 47.727 54865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 Period 30 34.785 40.568 47 575 56 085 66 439 79.058 113.283 164 494 241.333 356.787 530.312 790.948 1,181 882 Print Done So $ + 3 % 5 8 7 8 E R T Y U P D F I K Reference - Future Value of $1 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 18% 1.180 1.392 1.643 1.939 2.288 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.411 20% 1.200 1.440 1.728 2.074 2.488 1% 2% 3% 4% 1.010 1.020 2030 1040 1.020 1.040 1.061 1.082 1.030 1.061 1.093 1.125 1.041 1.082 1.126 1.170 1.051 1.104 1.159 1.217 1.062 1.126 1.194 1.265 1.072 1.149 1.230 1.316 1.083 1.172 1.267 1.369 1.094 1.195 1.305 1.423 1.105 1.219 1.344 1.480 1.116 1.243 1.384 1.539 1.127 1.268 1.426 1.601 1.138 1.294 1.469 1.665 1.149 1.319 1.513 1.732 1.161 1.346 1.558 1.801 1.220 1.486 1.806 2.191 1.282 1.641 2.094 2.666 1.348 1.811 2.427 3.243 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.700 3.185 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 1.796 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 3.386 4.292 6.848 10.83517.000 26.462 40.874 62.669 95.396 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 Print Done UTOITUT