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Assume the following information for a capital budgeting proposal with a five-year time horizon: $460,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues

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Assume the following information for a capital budgeting proposal with a five-year time horizon: $460,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket costs $300,000 $130,000 $ 50,000 $ 40,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2 to determine the appropriate discount factor(s) using the table provided This proposal's internal rate of return is closest to: EXHIBIT 14-1 Present Value of States 87 0.784 0.676 0.612 0.091 0.086 Periods 45 55 6 7% 8% 9 10% 11 12 13% 145 15% 169 17% 195 19% 20% 1 09620 952 0943 0935 215 225 0.926 0917 23% 245 255 0.909 0.901 0.893 0.885 0.877 0,870 0.862 0.855 0.847 0840 0833 0.826 0820 08130.305100 2 0925 0907 0.890 0873 0857 0 842 0.826 0812 0797 0.783 0.769 0.756 0743 0731 0718 0706 0694 0.683 3 0.889 0.864 0.840 0.816 0.672 0.661 0,650 810 0794 0772 0.751 0.731 0.712 0693 0675 0.658 0.641 0624 0609 0593 0.579 0.564 0.551 2 0855 0.823 0537 0.792 0.763 0735 0524 512 0708 0.683 0659 0 636 0613 0592 0.572 0552 0.534 0.516 0.499 0.482 0.467 0451 0.822 0.747 0.713 0691 0.650 0.621 0.437 0.423 310 593 0.567 0.543 0.519 0.497 0.476 0456 0.437 0.419 0.402 0386 0370 0.355 034128 6 0790 0746 0.705 0666 0.630 0.596 0554 0535 0507 0.480 0.456 0.432 0.410 0760 0711 0.390 0370 0.352 0335 AE 0.623 0289 0.275 0.2 0.319 0522 0583 0.303 wa 0513 0482 0.452 0.425 0.400 0.376 0354 033 0.314 0296 0279 0263 0249 0.677 02 0.592 0.540 0235 022 0 0502 0467 0434 0.404 0.376 0.351 0.327 0305 0.285 0266 0.249 0.220 0219 0.204 0.191 9 0.703 0.645 0.592 0544 0.500 0.79 03 0460 0424 0391 0.361 0.333 0309 0284 0.265 0.243 0.225 01209 0.194 0 180 0167 0558 0.155 10 0144 01 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0220 0247 0.227 0.208 0.191 0176 0.162 0.149 0.137 0.126 0.116 0107 11 0.650 0.585 0.527 0.475 0.429 0389 0350 0312 0.287 0.261 0.237 0215 0.195 0179 0.162 0.1.18 0125 0123 112 0103 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.28602570.231 0:208 0197 0168 0152 0.137 0124 0.112 0.102 0.092 0.083 0.076 069 0.601 0.530 0.469 0.415 0.368 01326 0.290 0.258 0.229 0.204 0.182 0.160 0.145 0.130 0.116 EE 01104 0.093 0.084 0.075 0.068 0.061 0.577 0.055 20 0505 0.442 299 0.340 0.299 0263 0232 0.2050.181 0.160 0.141 0.125 0.111 0.099 0085 0.078 0.069 0062 0.555 0.481 0.055 0.049 0.417 0362 0.044 0.315 0 275 0239 0.200 0.183 0.160 0.140 0123 0108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0.035 15 0.534 0458 0394 0.339 0.292 0.252 0.218 0.198 0.163 0123 0107 0.093 0.081 0.07 0.062 0.654 0.047 0.042 0.036 0.002 0.028 17 0.513 0.436 0.371 0317 0.270 0.231 0198 0.170 0146 0.125 0.108 0.093 0.080 0.069 0.060 0:05 0.04 0.039 0034 0.020 0.026 0.023 19 0.494 0416 0350 0.296 0.250 0.212 0.180 0.153 0130 011 0.095 0.081 0,069 0.059 0.051 0.044 0.038 0.024 0.021 19 0.475 0.032 0.028 0.33 0.018 0.396 0.277 0.232 0.194 0164 0.188 0.116 0.098 0.083 0070 0.060 0.051 0.043 0.037 0031 0.022 0.023 0.020 000 0014 0.456 0377 0.312 0.258 0215 0.178 0 149 0124 0219 0-104 0087 0.073 0.061 0.051 0043 0037 0.031 0.026 0.022 0.019 0.016 0044 0.012 2 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0.015 0:00 Qon 0009 0422 0342 0278 0.226 0184 0.150 0.123 0101 0.083 0.068 0.056 0.046 0.038 0.032 0.025 0.022 0.018 0.015 0.000 0.0 0.0090007 20 0.406 0326 0.262 0211 0170 0.138 0.112 w 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.0090.007 0.006 24 0290 0 310 0247 0197 0158 0.12 0102 0.045 0.035 0.028 0.023 0.019 0.015 0013 0.010 0.008 0.007 0.008 0.005 25 0.375 0.29 0229 0184 0.546 0.116 0.092 0.074 0059 0.047 0.038 0.030 0.024 0.020 0.016 0.03 0010 0.009 0.007 0.006 0.005 0.004 26 0.361 0281 02200172 0135 0.106 0.084 0.066 0.053 0042 0.033 0.026 0.021 0.017 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 27 034702680207 0161 0125 0.098 0.076 0.060 0.047 0,037 0.029 0,023 0.018 0.014 0.011 0.0090.007 0000 0.005 0.004 0.0000002 20 0.333 0255 0.150 0.116 0.090 00690054 0042 0.033 0026 0.020 0.016 0.012 0.010 0.008 0000 0.005 00040000 0.0020002 29 0.321 02430185 0.141 0107 0.082 0.063 0.048 0.037 0029 0,022 0.017 0014 001 0.0080.000 0005 0.000003 0.002 0.002 0.002 30 03080231 0774 0.131 0.0990075 0057 0044 0.033 0.026 002000150012 0009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 02010142 0.097 0.067 0046 0.03200220015 0.011 0.0000005 0004 0.003 0.002 0000001 0.001 0.000 0.000 0.000 0.000 0.000 0.082 0066 0.053 EGHIBIT 148-2 Present Value of an Annuity of $1 in Arreart: 85 05 10% 129 139 15% 16% 17% 1994 194 20% 219 22% 2398 245 255 1 0962 0.952 0913 0935 0.926 0917 0.9090901 0.893 0.885 0877 0.870 0.862 0.855 0847 0.840 0.833 0826 0.820 0.813 0,806 0.800 2 1886 1859 1833 1808 1783 1759 1736 1713 1690 1669 1647 1626 1.605 1585 1566 1547 1528 1.509 1.492 1.474 1.457 1440 273 2723 2673 2624 2577 2531 2487 2444 2402 2361 2322 2283 2.246 2210 2.174 2140 2106 2.074 2042 2.011 1.991 1952 4 3.630 2541 3.455 3387 3312 3.240 3170 3.102 3.037 2.974 2914 2855 2.796 2743 2.690 2 639 2589 2540 2494 2448 2404 2362 5 4.452 4329 4212 4.100 3.993 3.890 3791 3.696 3.605 3.517 3433 3352 3.274 3199 3122 3.059 2.991 2.926 2864 2803 2745 2699 5242 4767 2009 4673 4.486 4355 4234 111 3999 3.899 3784 3.685 3.589 3498 3.410 3326 3.245 3167 3.092 3.020 2951 7 6602 5.78 5582 5399 5206 5033 4868 4.712 4.564 442 4208 16 4.039 3.922 3812 3706 3.505 350g 3.416 3327 3.242 6335 8 3.161 6.453 6.210 5.971 5.747 5.539 5.335 5.146 4.968 4799 4636 4487 4344 4.207 4.078 31954 3.837 3726 3619 3518 3421 9 7435 6.802 6.515 5.247 5.995 5.759 5.537 5.3285132 3329 4.946 4772 4,607 4451 4303 4163 4.031 3.905 3796 3.675 3.566 10 8.11 T22 7380 7024 6710 6 418 3.463 6.145 5.889 5.650 5.426 5.216 5019 4833 4659 4494 4.339 4192 4.054 3.923 3.799 3.682 3571 11 87 8.306 7890 7400 7129 6.805 6.495 5.207 5938 5687 5453 5234 5029 4.8364656 4 486 4.327 4177 9385B.363 7043 4 035 3902 7536 3.776 8.384 3656 7151 6 814 6492 6194 5918 5.660 5.421 5197 4.988 4793 4611 4.439 4.279 9.986 9294 8.85 8.355 4127 3.985 7.904 7457 7103 6.750 3.951 3.725 6.122 5.8425.583 5342 5.118 14 10563 9999 4.910 4715 9.295 4.53 8.345 8.244 4.362 4.203 4053 7.786 7367 3.912 6.982 6.628 3.780 6.302 6002 5.72 5468 5.2295008 11150 1038 4802 9.712 4.611 4432 8559 9108 3061 4 265 3.962 3.824 4.108 7606 7191 6.811 6 462 6142 5.847 5575 5.324 5.092 4826 4.575 16 T2652 4315 0.52 4499 4153 10108 Q 4.001 8.85 3.859 8313 7.824 7379 6.974 6.604 6265 5.954 5.668 5.405 11234 10.477 5.162 4730 9768 9122 4938 8.544 8.022 7549 4536 4.357 4189 7120 4033 3.887 6.729 6373 6047 5749 19 12.659 1690 10828 5.475 5.222 4990 10.05 8.750 4775 9.372 8.201 4.57 7702 7250 6.840 4.391 4219 6.4676128 B3 5.819 4.059 3910 5 534 5273 12.085 11556 10336 9604 8.950 5.033 8.365 7839 4,812 4.608 7366 4.419 4243 6.938 6.550 6.198 5.872 115801246211470 20 5.584 5.316 10 594 9818 9129 8,514 5.070 7963 4843 4.635 7.025 7469 4.263 4.442 6.623 6.259 5.929 5.628 4,097 3.942 1402 5.353 5101 24 12.621 1764 10.83 4870 10012 4.657 44604279 9292 8 649 8075 7562 4.110 3.954 2 7102 6.312 5923 5.665 5.294 11.08 10.2019.442 8.772 5127 8176 4.891 7645 4.625 2170 4.476 6.743 6.3596.011 5.696 4.292 4.121 3.963 TUZTE 5.410 5149 10.371 950 8 883 8.266 4909 7700 7230 6.792 4.890 4.488 4.302 15 2473749 12.550 4.30 3.970 6.399 6.044 11.469 105299707 5723 8.983 5.43 5.167 2925 8348 7784 4703 72299 2 4.499 4311 562214094 1273 4.37 6.434 6073 5.744 5067 3.976 5.451 97 9.077 8.422 5.192 4937 42 4502 7843 7330 6.873 4319 6464 6.097 5766 5.467 4440 3.981 Dog 11.820 10.070 5:195 4948 9161 4.721 8.488 7896 7372 4.514 4.323 4142 6.900 3.985 6.491 11982 6.119 10.905 10.022 5783 5.480 9 237 8.547943 5.206 4956 42 7409 4520 1439 40 4329 6.939 6,514 6136 5.798 2988 10116 9.307 3602 5 492 7994 5.255 7441 6.961 4.964 4734 4524 056 6.534 6 152 3.990 5.810 9.1106508.072 7470 5.502 5.223 4.970 4739 30 4.528 6551 6.983 2.400 11250 4157 4334 6.100 3.992 10274 5.229 4975 5.820 5.510 8.055 7496 4740 40 4531 6.566 6177 417 4159 50m 1921075797799512447634 705 5029 557 2994 5.235 49794746 4534 4319 4100 3995 6.642 621350715.543 5250499747604544 4100 2999 4.0803928 O 10% O O O me

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