Assume that a company purchased a new machine for $24,000 that has no salvage value. The machine is expected to save the company $6,000 a year in cash operating costs for seven years. The company also expects the machine to provide annual intangible benefits that are difficult to quantify. Assuming the company's hurdle rate is 24%, the minimum value of the intangible benefits that would be required to make this investment acceptable is closest to Click here to view Exhibit 14B-1 and Exhibit 14B-2 to determine the appropriate discount factors using the tables provided. EXHIBIT 148-1 Precent Value et stor Periods 1 2 4 5 6 7 9 10 11 13 14 15 0.160 8% 95 105 123 13% 15% 18% 17 0.962 0.952 0943 0.935 0.926 0.917 0909 0901 0.893 0.885 0.8770870 0362 085508470.840 0.833 0826 0820 09308060300 185 20 213 258 0.925 0.907 890 0873 0857 0.842 0026 0.812 0.797 0783 0.7690 756 0743 0731 0899 0.854 08400816 0718 0.706 0894 0.683 0672 0681 0.6500640 0794 0772 0.751 0731 0712 0.693 0.6750658 0.541 0.855 0.23 0.792 0763 0735 0708 0.683 0.659 0.636 0.613 0.624 0609 0:593 0579 0564 0551 0537 052 0512 0.592 0572 0552 0534 05160499 0482 046704510407 0.423 0.410 0822 0.784 0.747 0.713 0681 0650 062105930567 0543 0.519 0.497 0.475 0456 0437 0419 04020396 03700355 03410320 0.7900746 0.705 0.656 06300596 0.564 0.535 0.507 0.480 0456 0.432 0410 0.390 03700352 0.335 0.319 0.303 0289 0275 0252 0.750 0.71 0.565 0.623 05830547 051304820452 0425 0.400 0376 0354 0333 0.3140296 0279 0263 0249 07550272 0210 0.731 0.677 0627 0.5820540 0.502 04670434 0.404 0.376 0351 0327 03050285 0.2660249 02330218 0204 0191 0.160 0.703 0.64505920.540500 0.460 0424 0.391 0.361 0.333 0.308 0.284 0.263 0243 0225 0.209 0.194 0180 0.167 0155 014 0578 0.614 055805080463 0.422 0.386 0.352 0322 0.295 0.270 0.2470 227 0208 0191 0.175 0.162 0.149 0.137 0126 0116 010 0650 0.5850527 0.4750429 0.3880350 0.317 0.287 0261 0.237 0215 0.195 0.178 0162 0.148 0135 0.123 0112 0.003 004 0038 0.625 0.557 0497 0.444 0.397 0.356 0319 0.286 0.2570.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.075 0069 0601 0.530 0469 0.415 0.368 0.326 0.290 0.258 0.229 0.2040182 0163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0000055 6.577 05050442 0.3880340 0.299 0.263 0.232 0.205 0,181 0.160 0.141 0.125 0.111 0.099 00880073 0.069 0.0620055 0049004 0555 0481 0.417 0.362 0315 0.275 0.2390209 0.183 0.140 0.123 0108 0.095 0.084 0.074 0.065 0.057 0.051 0045 0.040 0015 0.534 0.4580394 0.3390292 0.25% 0.218 0.188 0.163 03141 0.123 0.107 0.093 0.081 0.071 0062 0054 0.0470042 0.035 000.000 0513 0.436 0.371 0317 0.270 0.231 0.198 0.170 0.146 01250108 0.093 0.080 0.069 0.060 0.052 0.045 0.009 0.034 0.000 0.025 0.02 0.494 0.416 0350 0296 0.250 0212 0180 0153 0.130 0.111 0.095 0.081 0.069 0.059 0051 0.044 0.038 0.002 0.025 0.03 0.021 0.010 0.475 0.396 0.331 027 0232 0194 0.164 0.138 0.116 0.098 0083 0.070 0.000 0.051 0.043 0.037 0.031 0.027 0023 0.020 000 000 0.456 037 0312 0.258 0215 0.178 0.149 0124 0.104 0.087 0.073 0.061 0.051 0.0430037 0.001 0.025 0.022 0.0190.00 0.00 000 0.439 0.359 0294 02420199 0164 0.135 0.112 0.093 0.077 0.054 0.053 0044 0.037 0.031 0.026 0022 0.01 005 000 0.000000 0.422 0.3420278 02260154 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0015 000 000 000 000 0.406 0.126 0.262 0.211 0.170 0.138 0112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.019 0.015 0012 0.0100009 0.007 0.000 0.390 0.310 0247 0197 0.158 0126 0102 0.082 0066 0.053 0043 0.035 0028 0.023 0.019 0.015 0.00 0.00 0.000 000 000 0005 0.375 0.295 0.2330154 0.140 0.110 0.092 0.074 0.059 0047 0.038 0.030 0.024 0.020 0010 0.00 0.00 0.00 0.00 0.00 0.00 0.004 0.361 0202200172 013501060054 0066 0.053 0042 0.00 0.026 0.021 000 0000 0000 000 000 000 0004 000 0.347 0.268 0207 0101 0125 0.094 0.076 0.060 0047 003 0029 0.021 0.01 0.04 0.00 0.000 000 0000 000 0004 0.003 0.002 0.333 0255 0196 0150 0.00 0.009 0054 0042 003 0026 0020 000 000 0010 0.00 0.00 0.00 0.004 2003 2002 0.000 0.1210247 0.105 0.141 0107 0.002 0.063 0.048 0.037 0.029 0,022 000 001 001 0.000 0.00 0.00 0.004 000 000 000 000 0.100710174001 0.009 007 0057 0044 0.003 0026 0020 001 0002 0.00 0.00 0.00 0.004 0000 000 000 000 000 0208 0342 0097 003 004 003 0.022 00 00 0.00 0.00 0004 0.00 0.00 0.00 0.00 0.00 0.00 0.000000000000000 17 18 19 20 21 z2 23 24 25 26 29 30 40 EXHIBIT 140-2 Present Value of an Annulty of $1 in Arrears: 1% 20% 11 12 13 14 15 45 59 6% 756 8% 99 0.962 0.952 0.943 0.935 0.926 0.917 1.886 1.859 1833 1.808 1783 1759 2.775 2723 2.673 2.624 2.577 2.531 3.630 3.546 3,465 3.387 3 312 3.240 4.452 4.329 4212 4100 3 993 3.890 5.242 5,076 4 917 4.767 4.623 4486 6002 5786 5582 5.389 5.206 5033 6.733 6.463 6.210 5.971 5.747 5.535 7435 7108 6.802 6.515 6 247 5.995 8.111 7722 7360 7.024 6.710 6:41 8.760 8.306 7.887 7.499 7139 6.805 9.385 8863 8384 7943 7.536 7161 9.986 9.394 8.853 8.358 7904 7.487 10.563 9.899 9.295 8.745 8.244 7786 11.118 10 380 9.712 9.108 8.559 9.051 11.652 10.838 10.106 9.447 8.851 8,313 12.166 1.274 10.477 9765 9.122 8.544 12659 11690 10.828 10.059 9.372 8.756 13134 12.085 11.158 10.336 9604 8.950 13.590 12.462 11.470 10.594 9.818 9.129 14.029 12.821 11764 10 836 10.017 9.292 14.451 13.163 12.042 11061 10.201 9.442 54857 13.489 12 303 11272 10.371 9.580 15 247 3799 12.550 11.469 10.529 9.707 15622 14.094 12.783 11.654 10.675 9823 15.983 14 375 13.003 11.826 10.810 9.929 16.330 643 13.211 11987 10.935 10.027 16.663 14.898 13.406 12.137 11.051 10.116 16.384 15541 13591 12 278 11158 10198 17.292 15 372 13765 12.409 11258 10 274 19.799 17.150 15.046 13 732 11925 10757 10% 1196 12 138 15% 164 17% 189 19% 215 24 258 0.909 0.901 0893 885 0977 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0B20 0.03 0.006 0300 1.736 1713 1690 1668 1647 1626 1605 1.585 1566 1547 1.528 1.509 1492 1.474 1457 1440 2487 2444 2402 2361 2.322 2283 2246 2.210 2.174 2140 2.106 2074 2042 2011 1981 1952 3.170 3102 3.037 2.974 2914 2.955 2.798 2743 2 690 2.639 2589 2540 2494 2448 2404 2362 3.791 3 696 3.605 3517 3433 3.352 3.274 3199 3127 3.058 2.991 2.926 2.864 2803 2745 2589 4355 4231 4.111 3990 3.889 3738 1685 3589 3.498 3.410 3326 3245 3167 3.092 3.020 2.951 4 988 4712 4,564 4422 4.288 4.160 4.099 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.2423161 5.335 5.146 4 968 4799 4.6394487 4.344 4207 4.078 3.954 3.837 3726 3.619 3.518 3.421 3.329 5759 5.537 5.328 5132 49464772 48074451 4.303 4163 4031 3.905 3786 3.673 3.566 3463 6.145 5.889 5.650 5.426 5.216 5.619 4833 4669 4 494 43394192 4.054 3.923 3.799 3.682 3.571 6.495 6 207 5938 5687 5.453 5.234 029 4806 4656 4486 4327 4177 4035 3.902 3.776 3656 6.854 6.492 6194 5.913 5.660 5421 5.198 4.988 4793 4611 4.439 4278 4127 3.985 3.851 3725 7103 6.750 6.424 6.122 5.8425583 5.342 5.118 4910 4.715 4533 4362 4203 4.053 3912 3780 7363 6.982 6.628 6.302 6.002 5724 5.468 5229 5.0084 802 4611 4432 4265 4.108 3.962 3.824 7606 7:191 5.811 6.462 6.142 5.847 5 575 5.374 5.092 4.876 4575 4.489 4315 4153 4001 3.859 7.824 7329 6.974 6,604 6.265 5954 5.568 5.405 5162 4938 4730 4.536 4.357 4189 4,033 3887 8.022 7549 7120 6.729 6.373 6.047 5749 5475 5.222 4.990 4775 4,576 4.391 4.219 4.059 3910 8.201 7702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5,033 4.812 4.608 4.419 4.243 4.080 3.928 8.365 7839 7366 6.938 6.5506198 5.877 5.584 5.316 5070 4.843 4.635 4442 4.263 4097 3942 8.514 7963 7.469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4.460 4.279 4.110 954 8,649 8.025 7562 7102 6,637 6.312 5.973 5.665 5.384 5127 4.891 4.675 4.476 4.292 4121 3.963 8.772 8.176 7.645 7170 6.743 6.359 6,011 5.696 5.410 5149 4.909 4.690 4488 4.302 4.30 2.970 8.883 8.266 7718 7200 6.792 6.399 6.044 5.723 5.432 5167 4925 4703 4.499 4.311 4137 3.976 8.985 8.348 7784 2283 6.835 6.434 6,073 5746 5.451 5.182 4.937 4713 4.507 4318 4143 9.077 8.4227843 7330 6.873 6.464 6.097 5.766 5.467 5.195 4.948 4721 4.514 4323 4147 3985 9.161 8.488 7.896 7372 6.906 6.491 6118 5.783 5430 5.206 4956 4728 4520 4320 4151 3.688 9 237 8548 7943 7409 6935 6.514 6.136 5.798 5.492 5.215 4.954 4734 4524 4332 4154 9.307 8.6027984 2441 6.981 6.534 6.152 5.810 5.502 5222 4.970 4739 4528 4335 4153 3992 9.370 8,650 8.022 7470 6.903 6.551 6166 5,820 5.510 52294975 4743 453143314159 2.994 9.427 8.694 8.055 2490 2003 6568 6.172 5.8295.517 5.235 49794746 4534 434100 3.995 9.779 8.951 8.244 7634 9105 6.642 6.233 5371 55485258 4.997 47604544 4317 4166 18 19 20 21 22 23 24 25 2990 28 29 30 Multiple Choice O $117. $2.003 $1.233. $1,403