6 - Worth 10 Points. Trilogy Construction, Inc. is considering purchasing a new piece of machinery that would save it $40,000 a year in annual labor costs. The machine would cost $130,000 and is expected to last 5 years and have a $10,000 salvage value. The company's cost of capital is 8%. A) What is the machine's net present value? B) Should the company buy the machine? Use the TVM tables and please show your work w 1 COL NDI 100 1150 11 200 10 340 LIS 03 17 1. Future Value of $1 To TS 13 100 1.100 1620 20 1214 12 30 1 100 T4 18 1514 30 11 1 1 14 10 1 11 214 2.301 264 36 23 30 2 1.00 100 14 1 10 ER NE 1 1 21 16 T 100 1714 1 RE w 2. 23 2000 AEE 1 25 16 2758 ELLE WE PE NE VOLT 36 40 #41 4 ME 20 2 20 1414 30 B . 1 BLE NE 10 25 BE 2. DE SIN TO . 11 164 40 IN E 10 POP OL CE TO WEE OCET 141 2014 MO 14 120 t's 16 1 20 1697 4. 4711 51 WE WE 70 034 2 106 12.01 LEO 65 Y 12 RE E CIVO 0 TE 24 4 13 CRECE SELE BRE 23 HA TT 16 11 26. NE S 1345 12.12 18.575 001 12913 212 17 28 52.000 2011 2 20.444 57. 2012 4120 TON 38.00 850 10035 STEL 1 243503 13 1 W 72.00 132 1507) 4167 20 102 TE 46 Pw 2 -3 23 480 0961 002 0924 0900 0352 05 0.580 ON 0.91 0.561 OS 5 952 0907 0.94 0823 5 2 0.571 943 0.015 03 OMS 0337 0813 07 O 14 1 0.93 0.890 0.840 0.792 0747 0.705 0665 0.627 0500 0.550 0527 0.497 0469 070 0.750 0731 TOO 04670 0.853 0.83 DO 0.746 0.711 0.577 0.15 614 0923 0.014 DS D. 0. 0303 10 11 12 7 0935 0373 0816 0.783 0753 0.666 0.623 582 0544 0.500 0.475 0.444 0.415 0.00 0.362 0.339 0.317 0.298 0.277 0.250 0184 0.131 0 094 ODBY 001 0.601 0577 Present Value of $1 BN 9% 10% 11% 12% 13% 14% 15% 15% 17% 19% 0.926 0.917 0.9090001 0.893 0.885 0.577 0.870 0.82 0.255 34 0.857 0.842 0.826 0312 0.797 0.783 0.789 0.756 0.743 0.731 0.718 0.704 0.772 0.751 0.731 0.712 0.693 0.875 0.66 0 541 0.624 0.800 0.735 0708 0.583 0.859 01636 0.813 0.592 0572 0552 0.534 01510 0.681 0.650 0.621 0.593 0:567 0.543 0.519 0.497 0.478 0.450 0.437 0.630 0.596 0.564 0.535 0507 0.480 0.456 0432 0410 0.3000 370 583 0547 0.513 0.4R2 0.452 0.425 0.400 0378 0354 0.333 0314 0.540 0.502 0.467 0.434 0.404 0.376 0 351 0.327 0 305 0.285 0.256 0.500 0.450 0.424 0.391 0361 0.333 0 284 0253 0.243 0.225 0.463 0.422 03860.352 0.322 0.295 0.270 0247 0227 02191 0.429 0.388 0 350 0.317 0.287 0.261 0.237 0215 0 195 02170 0.397 0.356 0.319 0.286 0.257 0.231 0208 0.187 0168 0152 0.137 0368 0.326 0290 0.258 0.229 0204 0.182 0.163 0.130 0.110 0 340 0.290 0.263 0 232 0.206 0.181 0.100 0.141 0.125 0.111 0.315 0.275 0230 0.200 0.183 0.160 0 140 0123 0.100 0.096 0.064 0.292 0.252 0218 018 0.163 0.141 0.123 0.093 0081 0.071 0.270 0.231 0.19 0.170 0.148 0.125 0.100 0.093 0.0800.000 0.000 0.250 0.212 0.100.153 0.130 0.111 0.096 0.081 0.00 0.05 0.051 0.232 0.194 0.164 0.138 0.116 0.090 0085 0.070 0.00 0.051 0215 0,178 0.149 0.124 0 104 0.087 0.001 0.051 0.023 BOST 146 0.116 0,092 0.074 0.050 0 047 0.038 0.030 G630 2016 0.000 0.075 0.067 0.044 0.033 0.026 0.020 0.015 0.012 2009 0.08 0.049 036 0.026 0019 0.014 0010 0.00 0.00 0.0040003 0.040 0.032 0.022 0.015 0.011 0.000 0.005 0.004 0.003 002 0.001 0.021 0013 0.009 0.005 0 000 0.002 0.001 0.0010.000 0.000.000 DT 0.773 075 . 02 0714 0.100 58 042 13 0.340 0.830 0.706 0.894 0.599 0.579 0.499 0.482 0.419 0402 0352 0.335 029629 0.24 0.233 0.00 0.11 0.178 0.162 0.143 0.135 0.124 0.112 0904 0.083 QON 0.075 LOVE 0.08 0002 BL054 0.052 0.045 2040000 0.007 DEO 2008 0.003 010 0.005 0.004 0.0020002 0.001 0.000 0701 51 G661 04642 0.623 0.005 14 15 16 057 530 505 0431 0.458 0.450 0410 0300 70 OM D. 14 DEM 0.07 16 0570 20 0554 0.513 0.41 0675 049 375 0500 0.253 0208 0 145 0.417 0.394 0:371 0 350 0331 0312 0.233 0.174 0.130 0.097 0.054 30 35 . 076 TO 0672 1610 053 500 0.43 0.47 0402 0356 0307 022 0.295 0231 0.101 0.142 DIOS 50 Future Value of an Ordinary Annuity of $1 17 ME 30 10 ton 1000 1000 1000 12 TE 213 13 ta 24 1000 2 116 ME 2 2.000 1000 2000 37 457 20 350 100 3 WEE LEE 1000 2110 32 4710 22 7913 29 NI COOT W SV 14 RE 6 SL E 61 4 610 ene 10 one 13 Ta CS 710 BAN 100 11 WU ANT TA 10.000 9 14 41 MY 1 10 CE 110 TE 18.de WE 1 19 UNCE 151 16 TE 11 17 20 14 PE 2000 M 27 WY W 20 AN 200 CH TH D. IN 21 434 MA DE 22.0 2141 945 27 21 NM The w ON PU W - IPHE 45 1119 PEN W WERE 41 WEE IN WAL PH 212 30 1000 2015 S WE WON TEM CENT 7 27 WD . 1 2008 1. 20 311 1435 000 106 NS OTE 3 4 2 3 99 0.000 1.970 2.941 3000 2.23 2140 2008 25 6.720 7.00 30 7413 2704 2.54 4153 33 105 1 ICO 209 COTT Present Value of an Ordinary Annuity of $1 25 EX 95 50% 11% 13 1 74 090 0.012 10 0.971 109 0043 0912 0.935 0.820 0.917 6.900 0907 1942 170 2015 DESET 1913 0.293 885 077 18 RS 1232 1.800 1783 1759 1736 1713 24 1600 1 Bea 1.547 1528 1805 1 sas 1.5 2.829 2 23 2013 2577 2531 2.482 2444 27 2402 2.311 3.630 2222 2.240 2210 3.50 2114 361 3512 240 2170 1109 307 440 2355 2.750 13 2749 29742914 4452 2800 4320 4212 100 993 300 2791 1890 3603 3.517 3.433 1192 3.214 31 3.127 3.60 5411 6202 5.075 4023 4436 4355 41 410 3.610 2784 472 6230 6002 STM 3.50 SO 52 5033 4.368 4712 454 443 20 4.50 400 3.33 7322 1.00 6.733 1112 5463 6210 ST 6.747 5535 5335 5 10 47 4.50 4. 7. 4201 7.45 7108 8.02 5995 1.750 5.537 5.3.20 $ 132 4 4.772 4451 4303 2100 7034 MO 6416165 SH 5.000 1.40214 404 20 8.750 306 77 700 6 1055.495 5201 5. 5.67 1.00 5.2545.000 4 954 4 10 STS 9.383 8.00 3384 734) 7.530 7.161 6814 6.42 11 .. 5.918 5.660 0.41 10.63 8153 6.17 1360 7004 7.467 103 6.750 0.13 3.50 6.44 5.11 10 11. 10.16 6.745 3244 7. 7.367 692 6620 2 6.002 5.724 . 5220 10.30 112 100 3.560 8001 7600 71 0811 40 12 5 S. 1578 16 10 10.100 6.447 . 317.824 7.37 014 5054 . 405 14.22 13.10 12:16 11 274 10.477 783 9.122 6.541 8022 7.597129 5047 S. 14 13 754 12558 6773 11.00 $0.12 10.066 9.392 37508201 2.72 15.578 1334 27250 6.8408.467 129 5.518 3534 5.273 110 11.10 161 9.604 895 7.83 366 08.100 5310 16 35 SETT 1350 12.462 11420 1094 18 129 7981 74 7.005 3 10 70525 17.413 15022 1094 12. 1854 10.675 8 DO 147275 7.330 113 1.464 22300 10.000 17.20 13 42.400 11.90 10 2749427 8. 05 04 24999214 1.4 7.000 16374 ETT 120 3117 E. 12.40 11.655 10 567 9.6445 17 2736 . 70706617 170 17150 15.046 11.05 10757 1779 8.51244 785 91 108. 8.233 1871 21.7202142126 15 TO 12.233 10 000 915 0304 FTS 133 00 42 40 CHE OLE 4011 ES PS 10 2471 11 50 11.255 12.14 ||| 10 13.000 161718 1715.50 18 16 17.20 20 22 23 30 25. 29.69 225 30 29 43 4.011 4475 070 4775 5035 40 SU 5191 106 29 ME ELET 75 LE 2002 LON DIE 5358 2 506