Question
To make the investment financially attractive, what is the minimum salvage value (ignore income taxes, round your Intermediate calculations and final answer to the nearest
To make the investment financially attractive, what is the minimum salvage value (ignore income taxes, round your Intermediate calculations and final answer to the nearest whole dollar amount)? The discount rate is 16%. Equipment estimated useful life of 9 years. Excluding the salvage value, the net present value of the investment is -5579.623. Click here to view Exhibit 138-1 and Exhibit 138-2. to determine the appropriate discount factor(s) using the tables provided. $3.622,644 $579.623 $92.740 $2.203.890 Previous HIBIT 138-1 Value of $1 riods 4% 5% 66% 7% B% 9% 3 2 . B P 10 12 14 15 546 AZ 18 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21 % 22% 23% 24% 25% 0962 0952 0.943 0.935 0.926 0.917 0909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0813 0806 0.800 0.925 0.907 0.890 0.873 0.857 0,842 0.826 0812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0661 0.650 0.640 0.889 0.864 0.840 0.816 0794 0.772 0.751 0,731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0512 0.855 0.823 0792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0423 0.410 0822 0784 0.747 0.713 0,681 0.650 0.621 0593 0.567 0.543 0.519 0497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0328 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0456 0.432 0.410 0390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 0.700 0.711 0665 0.623 0.583 0.547 0.513 0482 0.452 0425 0400 0.376 0354 0333 0314 0296 0.279 0.263 0.249 0.235 0.222 0210 0.731 0.677 0.627 0.582 0.540 0502 0.467 0434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0191 0179 0 168 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 0.650 0.585 0.527 0.475 0.420 0.388 0.350 0.317 0.287 0.261 0237 0215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.004 0.006 0.625 0.557 0.497 0.444 0397 0.356 0319 0286 0.257 0.231 0208 0.187 0168 0.152 0.137 0.124 0112 0.102 0.092 0.083 0.076 0.060 0.601 0.530 0.469 0.415 0.368 0.326 0.200 0.258 0.220 0.204 0.102 0.163 0145 0.130 0.116 0104 0.003 0.084 0.075 0.068 0.061 0.055 0.577 0.505 0.442 0388 0.340 0.299 0.263 0232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 0.555 0.481 0.417 0362 0315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0.035 0534 0458 0304 0.330 0292 0252 0218 0188 0163 0141 0123 0107 0093 0.001 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 0513 0436 0371 0317 0.270 0231 0.198 0.170 0.146 0.125 0.108 0.093 0.000 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.026 0.023 0.494 0416 0.350 0.290 0.250 0.212 0.180 0.153 0130 0111 0005 0.001 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 0475 0.306 0331 0277 0232 0.194 0.164 0138 0.116 0.008 0.003 0.070 0060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 0.456 0377 0.312 0258 0.215 0.178 0.149 0.124 0.104 0.007 0.073 0061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0016 0014 0.012 0.439 0.359 0.204 0.242 0.100 0.164 0.135 0112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0022 0018 0015 0013 0.011 0.009 0.422 0342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.066 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0.011 0.000 0.007 23 0.406 0.326 0.262 0211 0.170 0.138 0.112 0.001 0.074 0.000 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.000 0.007 0.006 24 0.390 0.310 0247 0197 0.158 0.126 0.102 0.002 0.066 0.053 0.043 0035 0.028 0.023 0.019 0015 0013 0010 0.008 0.007 0.006 0.005 26 0375 0295 0233 0.104 0.146 0116 0.092 0.074 0.059 0.047 0038 0.030 0.024 0.020 0.016 0013 0010 0.009 0.007 0.006 0.005 0.004 0361 0281 0.220 0.172 0.135 0.106 0.084 0.066 0.053 0.042 0033 0.026 0.021 0.017 0.014 0.011 0.000 0.007 0.006 0.005 0.004 0.003 0.347 0.268 0.207 0.161 0.125 0.008 0.076 0.000 0.047 0037 0.029 0.023 0.018 0.014 0.011 0.000 0.007 0.006 0.005 0.004 0.003 0.002 0.333 0.255 0196 0.150 0.116 0.000 0.069 0.054 0042 0.033 0026 0.020 0.016 0.012 0.010 0008 0.006 0.005 0.004 0.003 0.002 0.002 0321 0.243 0.185 0.141 0.107 0.082 0.063 0.048 0037 0.029 0.022 0.017 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 0306 0231 0.174 0131 0.009 0.075 0.057 0044 0033 0026 0.020 0015 0012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0208 0142 0.007 0.067 0.046 0.032 0.022 0.015 0011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 19 20 21 22 26 27 E REAR S 20 30 40 New Tab EXHIBIT 138-2 Present Vale of an Amity of $1 in Arrears Periods 4% 5% 6% 7% BYC 9% 10% 11% 12% 13% 14K 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1808 0.926 1.783 2.577 4 5 22 18 EPS ER ARKA RRAR & 0.962 0.952 0.943 0.935 1.886 1859 1833 2.775 2.723 2.673 2.624 3630 3.546 3.465 3.387 3312 4.452 4.329 4212 4.100 3.993 5242 5076 4.917 4767 4623 6.002 5.786 5.582 5.389 5206 6.733 6.463 6.210 5971 5747 7.435 7.108 6.802 6.515 6247 111 7.722 7.360 7.024 6710 8.760 8306 7.887 7.499 7.139 9385 8.863 8304 7,943 7.536 9.906 9394 8853 8.358 7.904 0917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.759 1736 1.713 1690 1668 1.647 1.626 1605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1,440 2.531 2.487 2.444 2.402 2.361 2.322 2.283 2246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1952 3.240 3.170 3.102 3.037 2.974 2014 2.855 2798 2.743 2.690 2639 2.589 2.540 2.494 2.440 2.404 2.362 3.890 3.791 3.696 3.605 3517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 4.486 4.355 4231 4111 3998 3.889 3784 3685 3.589 3.498 3.410 3.326 3.245 3 167 3.092 3.020 2.951 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3706 3.605 3.508 3.416 3.327 3.242 3.161 5.535 5335 5 146 4.968 4799 4.639 4.487 4.344 4.207 4.078 3954 3837 3.726 3.619 3.518 3.421 3.329 5.995 5.759 5.537 5328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 3.905 3786 3.673 3.566 3.463 6.418 6.145 5.889 5.650 5.426 5216 5019 4.833 4659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 6805 6.495 6.207 5938 5687 5453 5.234 5.029 4.836 4.656 4.406 4.327 4.177 4.035 3.902 3.776 3.656 7.161 6814 6492 6194 5918 5660 5421 5 197 4980 4.793 4611 4.439 4.278 4.127 3.985 3.851 3.725 7.487 7.103 6750 6424 6122 5842 5583 5342 5118 4.910 4.715 4533 4.362 4.203 4.053 3.912 3.780 7.786 7.367 6982 6628 6302 6.002 5724 5.468 5229 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3.824 8.061 7.606 7.191 6811 6 462 6.142 5847 5575 5324 5.092 4.876 4.675 4.489 4315 4.153 4.001 3.859 8.313 7.824 7.379 6974 6604 6.265 5054 5.068 5.405 5.162 4.938 4.730 4.536 4.357 4.189 4,033 3.887 8.544 022 7.549 7120 6320-0373 6047 5749 5475 5222 4990 4.775 4.576 4.391 4.219 4.059 3910 8.750 8201 7.702 7.260 6840 6407 6128 5818 6634 5273 5033 4.812 4.600 4419 4.243 4.080 3.928 8.950 8.365 7.839 7.366 6930 0.550 6.198 5877 5584 5.316 5070 4.843 4.635 4.442 4.263 4.097 3.942 9.129 8.514 7.963 7.469 7025:5623 6.259 5929 5628 5353 5101 4.870 4.057 4.460 4.279 4.1.10 3.954 9.292 8.649 8.075 7.562 7 102 6687 6312 5973 5.665 5.384 5.127 4.891 4.675 4,476 4.202 4.121 3.963. 9442 8.772 8.176 7645 7 170 6743 6359 6011 5696 5.410 5.149 4.900 4.690 4.488 4.302 4.130 3.970 9.580 8803 8.266 7718 7.230 6702 6300 6044 5.723 5.432 5,167 4.925 4.703 4.490 4.311 4.137 3.976 9.707 8.985 8.348 7.784 7.283 6835 6434 6073 5746 5.451 5102 4.937 4.713 4.507 4.318 4.143 3.981 9823 9077 8.422 7.843 7 330 6873 6464 0.097 5766 5.467 5.195 4.948 4721 4.514 4.323 4.147 3.085 15.983 14.375 13.003 11.826 10.810 9929 9161 488 7896 7372 6900 6491 6118 5783 5400 5.206 4.056 4.728 4.520 4.328 4.151.3.988 16.330 14.643 13.211 11.087 10 93% 10.027 9.237 8.548 7.943 7 400 6935 6614 6136 5700 5.492 5215 4.904 4.734 4.524 4.332 4.154 3.990 16.663 14.898 13.406 12.137 11.061 10.116 9307 6602 7.984 7.441 6061 6534 6152 5810 5.502 5223 4970 4.739 4.528 4.335 4.157 3.992 16.084 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6983 6551 6.166 5820 5510 5229 4.975 4.743 4.531 4.337 4.159 3.904 17.202 15.372 13.765 12.400 11.250 10.274 9.427 8.694 8055 7.406 7.003 6566 6.177 5829 5.517 5.235 4.979 4.746 4.534 4.330 4.160 3.995 10.793 17.159 15.046 13.332 11.025 10.767 9.779 8.951 0.244 7634 7105 6642 6233 5871 5.548 5.250 4.097 4.760 4.544 4.347 4.100 2.999 10.563 9.899 9.295 8.745 8.244 11.118 10.300 9712 9.108 8.559 11.552 10.838 10.106 9.447 8.851 12:166 11.274 10.477 9.763 9122 12.659 11.600 10.028 10.059 9.372 13.134 12.085.11.158 10.336 0.004 13.590 12.402 11.470 10.594 9.818 14.029 12.021 11.764 10.836 10.017 14.451 13.163 12.042 11.061 10.201 14.857 13.409 12.303 11.272 10.371 15 247 13.709 12.550 11.400 10.529 15.622 14,004 12.783 11.654 10.675
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