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Assume the following information for a capital budgeting proposal with a five-year time horizon: $420,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues
Assume the following information for a capital budgeting proposal with a five-year time horizon: $420,000 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 $ 58,000 $ 48,888 Click here to view Exhibit 14B-1 and Exhibit 14B-2 to determine the appropriate discount factors using the provided If the company's discount rate is 12%, then the net present value for this investment is closest to: EXHIBIT 148-1 Present Value of $t: 1 Periods 1 2. 3 4 5 6 7 9 0.391 2 10 11 12 15 14 15 65 79 8% 9% 10% 11% 12% 13% 1496 0.962 0.952 0943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0877 0.870 0.862 0.855 0.847 15 16% 1996 20% 215 225 23% 24% 25% 0925 0907 0.890 0.873 0.857 0.842 0.826 0.812 0797 0.840 0.833 0.826 0.820 0.813 0.806 0.800 0.783 0769 0.756 0743 0731 0.718 0.8890864 0.840 0.816 0.794 0.772 0.706 0.694 0.751 0.731 0.683 0.672 0 661 0650 0.640 0712 0.855 0.823 0.792 0.763 0693 0.675 0,658 0.641 0.735 0.708 0.624 0.609 0.593 0.579 0,564 0.551 0.683 0.659 0.636 06130592 0.572 0.552 0.534 0.537 0.524 0512 0.822 0.784 0.747 0.713 0.516 0681 0.650 0621 0.499 0.482 0.467 0451 0437 0.423 0.410 0.593 0567 0543 0519 0497 0.476 0.456 0.437 0.419 0790 0.746 0705 0.402 0.386 0.370 0.355 0341 0.666 0.630 0596 0564 0.535 0328 0.750 0.711 0.507 0.480 0.456 0.665 0.623 0.583 0432 0.547 0,513 0.410 0.390 0.370 0352 0.335 0.319 0482 0303 0.289 0.215 0 452 0.425 0.400 0.376 0.262 0731 0354 0333 0314 0677 0627 0.582 0.540 0.502 0.296 0.279 s 0314 0467 0.263 0.249 0.235 0.222 0.434 0.210 0404 0.376 0.351 0.327 0.703 0.645 0.592 0.544 0.500 0.460 0.305 0.285 0.266 0249 0.233 0.424 0.218 0204 0.191 0.179 0168 0.361 0.333 01308 0284 0.676 0.614 0.558 0.508 0.463 0.263 0.243 0194 0422 0.225 0209 0.180 0167 0.422 0.386 0.352 0.322 0.155 0.295 6270 0247 0144 0134 0227 0.205 0191 0.176 0162 149 157 0128 0.650 0.585 0.116 0.527 0.107 0.475 0.429 0.388 0.350 0317 0.287 0.237 0.625 0.557 0.261 0497 0215 0195 0178 0.162 0.148 0.135 0.125 0.356 0.444 0397 0.319 0.286 0257 0231 0.112 0208 0.187 0.094 0.066 0.103 0 168 0.601 0.530 0.152 0.415 0.469 0.124 0.137 0.112 0.102 0.368 0.326 0.290 0.258 0.229 0.204 0.092 0.083 0.076 0.069 01192 0.163 010 0120 116 0.104 0.577 0505 0442 nood 0.388 0340 0.093 BOLA 0.084 0.299 0.075 wice 0.263 0.232 0.205 0.068 0.061 0,055 0.181 0 160 0191 0555 0.125 111 0.088 0.078 0.069 0.099 0491 0.417 0.362 0.315 0.275 0.239 0,209 0.160 0193 0.062 0.055 0.049 0.044 0.123 0140 0108 0.095 0.084 0.074 0.065 0,057 0051 0.045 0.040 0.035 0.534 0.458 01394 0.339 0.292 0.252 0.218 0.188 13 0141 00141 0123 0107 0.093 0081 0.071 0.062 0054 0.047 0,042 0.036 0.55 0436 0371 0.317 0.270 0.231 0.198 0.170 0146 0125 0108 0.093 0.000 0.069 0.032 0.028 0.060 0.052 0.045 0.039 0.416 0.350 0296 0.250 0212 0.180 0.153 0130 0.095 0.081 0.069 0.059 0.034 0.030 0.026 0.023 0.051 0.044 0.475 0396 0331 200 0277 0.232 0038 0.032 0164 0.194 0.138 0.116 0.098 0.028 0.024 0.021 0.018 0.083 0.070 0.060 0.051 0456 0.043 0.037 0.456 0.377 0312 0258 0.215 0178 0.124 0.149 0.104 0,037 0.073 0.061 0051 0.020 2017 0.01 0.027 0043 0.027 0.031 0,026 0022 0.019 000 men 0.4390359 0.294 0242 0.199 (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 0278 0.013 0.342 0.220 0.184 0.150 0123 0.011 0.083 0101 0.068 0.056 0.009 nare 0.00 0046 0.038 0032 0.018 0032 0.026 0.022 0.015 0406 0.013 0326 . 0.0m 0.009 0.007 0.262 0.211 0.170 0.138 0 112 0.091 0.074 0.060 0.049 0.040 0.033 0.022 0.310 san 0.247 0.015 0.012 0.010 0.009 0.007 0.006 0197 0.158 0126 0102 0.082 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0.015 0.37 0.003 0.010 0.000 0.002 0.005 0.005 0.295 0.233 018 0146 0.116 0.092 0.074 0.038 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0002 0.006 0.005 0.004 0.361 0-2200172 0.135 0106 0.084 0.066 0.053 0.042 0.033 0.026 0.021 0012 0.014 0.01 0.009 0007 0.347 0.006 0.005 0004 0.000 0.268 0.2017 0.161 0.125 0.098 0.070 0.060 0047 0037 0.029 0.023 0.018 0.014 0011 0.0090007 0.000 0009 0333 0.255 0196 0.004 0.000 0.002 0150 0196 0.090 0.069 0.054 0042 0.033 0.026 0020 0016 0012 0.010 0.008 0.006 0005 0.004 0.003 0.002 0.002 0321 0.243 0185 0.141 0.107 0.002 0.063 0.040 0037 0.029 0.022 0.017 0.014 0.011 0.008 0.006 0.005 0.0040.000 0.002 0.002 0.002 0303 0222 0974 0131 0.099 0.075 0.057 0.044 0.033 0026 0.020 0,015 0,012 0.000 0.007 0.005 0,004 0000 0.003 0.002 0.002 0001 0.2080142 0097 0.067 0046 0.032 0.022 0.015 0011 0.008 0.005 0004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 16 17 18 0.494 64 20 22 0,022 0.018 24 0390 0.059 0047 2 28 30 40 0031 2032 ECHIBIT 148-2 Present Value of an Annulty of S1 in Arrears; al Periods 1 2 3 4 5 6 7 8 9 10 11 12 12 14 5% 8 0.962 0.952 0.943 0.935 0.926 1.886 1859 1833 1.808 1783 2775 2725 2673 2624 257 3.630 3.546 3.465 3.387 3.312 4.329 4212 4100 3.993 5.242 4917 4.623 6.002 5.786 5582 5389 5.206 6.733 5.466 6.210 5971 5747 7435 7108 6.802 6.515 6 247 8.111 7322 7360 7.024 6710 8.750 8306 7.887 7499 7139 91385 8.863 8.384 7943 7536 9.996 9394 8.853 8.358 7902 10 563 9999 9.295 8745 8242 11118 10.3809712 9.105 8 559 11652 10.838 10:106 9447 8851 12.556 11274 9763 9.122 12 659 11690 10.828 10.059 9372 13.124 12.085 11.158 10336 9600 13.590 12.462 11470 10.594 9818 14.029 12.821 11.764 10.83 10.017 14451 13163 12.042 11051 10.201 1457 13.489 12303 11.272 10 371 15 241 13.799 12.550 11.469 10 524 15.672 14.094 12783 11654 10675 15 983 14375 13.003 11820 108 16330 4643 13 211 11.987 10.939 15.663 149 13.404 12.131 11051 16584 15541 13591 12.278 11158 17.292 15 372 3765 12.409 11250 1973 17159 1333211925 99 0.917 1759 2531 3240 3.890 4456 5033 5.535 5995 6.418 5.805 7161 7.487 7786 6061 8.313 B.544 8756 8.950 9129 9.292 9442 9580 9.707 9822 15 10% 1135 12% 13% 14% 15% 1596 176 189 19% 20% 215 229 22 0 909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 08400833 0826 0.820 0.80 245 255 0806 0.800 1736 1713 1690 1669 1647 1626 1605 1585 566 1547 1528 1509 1492 1474 1457 2.487 2414 1440 2.402 236 2.322 2283 2 246 2.210 2.174 2140 2106 2.074 2.042 2011 1981 1952 3170 3102 3037 2974 2.914 2355 2798 2743 2698 2.639 2.589 2.540 2494 2.448 2404 2362 3.791 3696 3.6053.517 3433 3352 34274 3199 3127 3059 2991 2.926 2864 2803 2745 2.689 43554231 4111 3.999 3.99 3794 359 3589 3.499 3.410 3.326 3.245 3157 3.092 3.020 4.868472 2951 4.564 4428 12 3922 312 2701 3.605 3.508 3456 3.327 3.242 3.161 5.335 5145 4968 4799 7 34 4207 5078 30 3831 3726 3.619 3.518 3.421 3379 5.759 5537 5328 5.132 40A 4772 4632 4.45 4 303 4163 4031 3.905 3.756 3.67 3.566 3.463 5145 5 889 5.650 5.426 5.216 5.019 4833 4659 4494 4359 4197 4054 3.923 3799 3.682 3.571 6.495 5.207 5.939 5.68 54535222 502 483 4656 4 480 232 30 3.902 9776 3656 6.81 6.492 6.194 5.913 584 5.42 5197 4999 4703 4.611 430 3228 4.127 3.985 21.95 3725 2103 6750 5,424 6122 5.842 5.58 5.342 5.118 4910 4.715 4.530 4367 4.203 4055 3.912 3.780 7367 6.982 6:6286302 600 5724 546 5229 500 4 807 461 4.432 4265 4.108 3962 3.824 7606 2191 6.81 6.462 6142 5347 5.575 5.374 5092 4.876 4675 4.489 4 315 4153 4.001 3.859 7824 7379 6.974 6.504 6.265 5.954 5.568 5405 5.162 4938 4.730 4536 4357 4199 4063 3887 8.022 7549 7120 672 5372 5.047 5.749 5.475 5.222 4990 4775 4.575 4391 4219 40593910 2201 7202 7250 5.840 6.467 6.129 5.818 5.534 5.273 5035 12 4608 4419 4243 40803928 8.365 7.839 2,966 6.99 6.199 5.872 5 594 5.316 5.070 4943 4.635 4412 4.263 4097 3942 8 514 7963 7469 7.025 6.523 6259 5.929 5.628 5.353 5101 4.870 4657 4.450 4219 4110 3.954 8649 8.075 7.562 7.102 6587 6.312 5978 5.665 5 384 5127 4.891 4.675 4.476 4292 4121 2963 8772 7605 7170 6.743 6350 F011 51696 5410 519 4009 4.690 4.458 4302412 3970 8.88S 8.256 7718 7230 6.792 61399 6.044 5.722 5.432 5162 4.925 4.499 4311 3.975 8.985 8.348 7784 7283 6.835 6.434 6.07 5746 5451 5 ta 4937 4316 4.507 4313410 31 9.07784227843 7330 6.873 6.464 6097 5768 5467 5195 4948 4721 4514 1905 9161 8488 7896 7372 6 906 6.491 6115 5.78 5.490 5.200 4.956 4729 4520 4328 1908 9.237 8.548 7945 7.409 6.995 6.514 6.136 5798 5 492 5.215 4.964 4734 9307 8 602 7984 7441 5.951 6534 6.15 5.810 5.502 5.223 4970 1992 93708650 3.022 7.470 6.983 6.551 166 5820 5510 5229 4.975 4743 1155 3994 92427 8.694 8.055 7496 2002 6.566 6177 5.829 5.517 5235 4979 47464534 3.995 9.779 0.9510244 7634 2105 660262 55715.543 5253 499747404544 4347 40 1999 10 477 15 17 18 19 20 21 22 23 24 22 29 9929 10.027 10.116 10.195 10274 40 10.757 O $48,650. O S631600) O $2,600 $131.600
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