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To motivate her staff, Betty runs a few different PV scenarios to show how their additional effort could really pay off. Under average conditions, after-tax

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To motivate her staff, Betty runs a few different PV scenarios to show how their additional effort could really pay off. Under average conditions, after-tax annual net operating cash flows are $88,000. Under a bit more optimistic (but still possible) conditions, after-tax annual net operating cash flows could be $114,000. She tells her staff that if these higher cash flow amounts could be earned for 4 consecutive years, a portion of that value could be used for employee perks (i.e., celebratory trips paid for by the company). She thinks she has their attention. Using two different possible discount rates ( 6% and 8% ), calculate the range of NPVs for the average and optimistic options. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to 2 decimal places eg. 5,125.36. Enter negative amounts using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) Click here to view the factor table

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