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Tremaine Company is considering two mutually exclusive long-term investment projects. Project ABC would require an investment of $240,000, have a useful life of 4 years,

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Tremaine Company is considering two mutually exclusive long-term investment projects. Project ABC would require an investment of $240,000, have a useful life of 4 years, and annual cash flows of $78,000. Project XYZ would require an investment of $230,000, have a useful life of 5 years, and annual cash flows of $66,000. Cost of capital is 12 percent (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1) Which project do you recommend? Complete this question by entering your answers in the tabs below. Project ABC Project XYZ Recommend Calculate NPV. (Use appropriate factor(s) from the tables provided. Round your "Future Cash Flow" values to the nearest whole dollar amounts. Negative amounts should be indicated by a minus sign.) Project ABC Table or Calculator Function: Cash Inflow Project ABC Project XYZ Recommend Calculate NPV. (Use appropriate factor(s) from the tables provided. Round your "Future Cash Flow" values to the nearest whole dollar amounts. Negative amounts should be indicated by a minus sign.) Project ABC Table or Calculator Function: Cash Inflow Table Factor PV of Future Cash Flows Original Investment NPV of Project ABC XYZ > TABLE 11.1A Future Value of $1 Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 0 10000 10000 10000 10000 10000 10000 10000 10000 10000 1 10200 10300 10375 10400 10425 10500 10600 10700 10800 2 10404 1060910764 1081610868 11025 11236 1544911664 3 10612 10927 1968 112491133011576 11910 1225012597 4 10824 11255 11587 11699 11811 12155 12625 13108 13605 11041 11593 12021 12167 1233 12763 13382 14026 14693 6 11262 1941 12472 12653 12837 13401 14185 15007 15869 7 1487 12299 12939 131591338214071 15036 1605817138 8 11717 12668 13425 13686 13951 14775 15938 17182 18509 9 11951 13048 13928 1423314544 15513 16895 18385 19990 10 12190 13439 4450 14802 15162 16289 17906 19672 21589 20 14859 180612088221911 22989 26533 3.207138697 46610 Periods 0% 10% 11% 12% 13% 14% 15% 20% 25% 0 10000 10000 10000 10000 10000 10000 10000 10000 10000 1 10900 11000 11100 11200 11300 1400 1500 12000 12500 2 1188112100 12321 12544 12769 1299613225 14400 15625 3 12950 13310 13676 14049144291481615209 17200 19531 4 14116 1464115181 15735 163051689017490 2.0736 2.4414 5 156 16105 16851 176231424 1925420114 2.438330518 6 1677 1776 18704 19738 20820 2950 23012086038147 7 828019487 20262 22107 2526 25023 26600 3.5832 47684 B 1926 21436 23045 24700 26584 285 26 30590 429985960S 9 210 215 255027731300102915179 51.0 2450G 10 23674 2.593728394 3105833946 3707240456 61917 93132 20 6044 6727580623 96463 #521 137435 16 366533376 367362 TABLE 11.2A Present Value of $1 Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 1 0.9804 0.9709 0.9639 0.9615 0.9592 0.9524 0.9434 0.9346 0.9259 2 0.9612 0.9426 0.9290 0.9246 0.9201 09070 08900 0.8734 08573 3 0.9423 0.9151 0.8954 0.8890 0.8826 08638 0.8396 0.8163 07938 4 0.9238 0.8885 0.8631 0.8548 0.8466 08227 07921 0.7629 07350 5 0.9057 0.8626 0.8319 08219 08121 07835 07473 07130 05806 6 0.8880 0.8375 0.8018 07903 07790 07462 07050 06663 0.6302 7 0.8706 0.8131 0.7728 07599 0.7473 07107 06651 0.6227 05835 8 08535 0.7894 0.7449 07307 07168 06768 06274 0.5820 0.5403 9 0.8368 07664 0.7180 07026 06876 06446 0.5919 05439 05002 10 0.8203 07441 0.6920 0.6756 0.6595 0.6139 0.5584 0.5083 0.4632 2006730 0.5537 0.4789 04564 04350 03769 0.3118 02584 02145 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 1 0.9174 0.9091 0.9009 0.8929 0.8850 08772 '08696 08333 0.8000 2 0.8417 0.8264 0.8116 07972 078307695 07561 06944 06400 3 07722 07513 07312 07118 06931 06750 06575 0.5787 05120 4 07084 0683006587 06355 0.613305921 05718 0.4823 0.4096 5 06499 0620905935 0.5674 0.5428 0.5194 04972 0.4019 03277 6 05963 05645 05346 0.5066 04803 04556 04323 0.3349 02621 05470 05132 0.4817 04523 04251 0.3996 03759 02791 02097 8 05019 04665 04339 04039 03762 03506 03269 02326 0.1678 9 04604 04241 0.3909 03606 03329 0.3075 02843 01938 01342 1004224 03855 0.3522 03220 02946 02697 02472 01615 01074 20_01784 01486 0124001037 00868 00728 0061100261 00115 TABLE 113A Future Value of an Annuity of 51 Periods 2 3 3.75% 4 4.25% 0% 7% 0% 10000 10000 10000 10000 10000 10000 10000 10000 10000 2 20200 20300203752040020125 20500 20000 20700 20800 30604 30909 3109 31216 31203 3152531836 329 32464 41216 41836 4230742465 42623 43101 43746 44399 45061 5 52040 5.3091 5389354163 5.4434 55256 56371 5750758666 63061 64684 6591466330 6674868019 6975321533 73359 74343 76625 78386 7898379585814208393886540 89228 8.5830 8892391326 9214292967 9.5491 98975 10 2598 106366 9 9.7546 101591 10.4750 10.582810691810266 114913119780 12.4876 10 10.9497 114639 11.8678 120061 12.1462 12.5779 131808 138164 144866 20 24 2974 26 8704290174 297781 30.5625 330660 367856 40.9955 457620 Periods 0% 10% 11% 12% 13% 14% 15% 20% 25% 1 10000 10000 10000 10000 10000 10000 10000 10000 10000 2 20900 21000 2100 21200 21300 21400 21500 22000 22500 32781 33100 33421 33744 34069 34396 3472536400 38125 45731 46410 4 7097 4779348498 49211 499345.3680 57656 59847 6.1051 62278 63528 64803 66101 67424 74416 8 2070 6 7523377156 79129115283222 8535587537 9 2004 9487297833 100890104047 10.7305 110668 2.9159 15 0735 110285 114359 118594 12 2997 27573132328137266 16.4991 198419 130210 13.5975 141640 147757 15.4157 16 0853 167856 20.7989 258023 151929 15.9374 16722017548784197 19:333 20 3037 25.9587332529 20 511501572750 64 2028 720524 809468 910249 102 4436 1866880 342 9447 TABLE 11.4A Present Value of Annuity of $1 Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 09804 0970909639 09615 09592 0.9524 0.9434 09346 09259 19416 9135 1892918861 18794 18594 18334 18080 17833 20 Periods 1 2 2 883928286 27883 27751 27620 27232 26730 26243 25771 3.8077 3.717136514 36299 36086 35460 3.4651 3387233121 47135 4.5797 4.4833 4.4518 44207 43295 421244100239927 56014 5.4172 52851 52421 51997 50757 491747665 46229 6.4720 6.2303 6.0579600215.9470 57864 5.5824 5.3893 5 2064 73255 70197 68028 67327 6.6638 6.4632 6 2098 5.9713 57466 81622 77861 7520874353 7351371078 68017 6515262469 89826 8.530282128 81109 8010977217 73601 7023667101 16.3514 14.8775 13.896213 5903 13 2944 12.4622 114699 105940 9.8181 9% 10% 11% 0.9174 0.9091 0.900908929 0855008772 0.8696 08333 08000 1759117355 17125 1690116681 16467 1625715278 14400 2.531324869 24437 24018 23612 23216 228322106519520 3.2397 3169931024 30373 2.974529137 28550 2588723616 3.8897 3790836959 36048 3.5172 34331 33522 2.9906 26893 4.485943553 42305 41114 3997538887 3.784533255 29514 50330 48684 4712245638 44226 42883 4160436046 31611 5.5348 533495146149676 47988 4.6389 4487338372 33289 59952 57590 55370 53282 51317 49464 47716 40310 34631 6 4177 61446 58892 56502 5426252161 50188 41925 35705 91285 85136 79633 74694 70248 6623162593 4869639539 20

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