Ursus, Inc., is considering a project that would have a five-year life and would require a $750,000 investment in equipment. At the end of five years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows (lgnore income taxes.): Sales $1,900,000 1,300,000 600,000 Variable expenses Contribution margin Fixed expenses: Fixed out-of-pocket cash expenses Depreciation $350,000 500,000 150,000 100,000 Net operating income Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 7%. Required: . Compute the project's net present value. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) b. Compute the project's internal rate of return. (Round your final answer to the nearest whole percent.) c. Compute the project's payback period. (Round your antwer to 2 decimal places.) d. Compute the project's simple rate of return. (Round your final answer to the nearest whole percent.) a. Net present value rate of return b nter Payback period years C Simple rate of return EXHIBIT 12B-1 Present Value of $1; 5 % Periods 4% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25 % 0.962 0952 0943 0.935 0.926 0917 0.909 0.901 0.893 0885 0.877 0.870 0862 0855 0847 0.840 0833 0.826 0820 0.813 0806 0.800 2 0.925 0.907 0.890 0.873 0.857 0842 0826 0.812 0797 0.783 0769 0.756 0743 0731 0718 0706 0694 0.683 0.672 0661 0.650 0640 0.889 0864 0.840 0816 0794 0772 0751 0731 0712 0,693 0675 0,658 0641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0512 A 0.855 0.823 0792 0.763 0.735 0708 0683 0.659 0.636 0.613 0592 0572 0552 0.534 0516 0.499 0482 0.467 0.451 0437 0.423 0410 0.822 0784 0747 0,713 0.681 0650 0621 0.593 0.567 0.543 0519 0497 0476 0456 0437 0.419 0402 0.386 0370 0.355 0.341 0328 0.390 0370 0.352 0335 0.319 0.303 0289 0275 0262 0.790 0746 0705 0666 0630 0.596 0564 0.535 0507 0.480 0456 0.432 0410 6 0760 0711 7 0.665 0623 0583 0.547 0513 0482 0452 0425 0400 0.376 0354 0333 0314 0296 0279 0263 0.249 0235 0.222 0210 0.731 0677 0.627 0.582 0540 0.502 0.467 0434 0.404 0.376 0.351 0.327 0305 0.285 0266 0.249 0233 0.218 0204 0191 0.179 0168 0.703 0.645 0.592 0.544 0.500 0460 0424 0.391 0.361 0.333 0308 0.284 0263 0.243 0225 0.209 0194 0.180 0167 0155 0.144 0134 0,107 10 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0270 0.247 0227 0.208 0191 0.176 0.162 0149 0.137 0.126 0.116 11 0.650 0585 0.527 0.475 0.429 0.388 0.350 0.317 0287 0.261 0237 0.215 0195 0178 0162 0.135 0123 0.112 0103 0.094 0.086 0.148 12 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0257 0.2310208 0187 0.168 0152 0.137 0.124 0.112 0102 0.092 0.083 0076 0.069 13 0.601 0.530 0.469 0415 0.368 0.326 0290 0258 0229 0.204 0182 0163 0145 0130 0.116 0104 0.093 0084 0075 0068 0061 0.055 14 0160 0141 0577 0505 0.442 0.388 0.340 0299 0263 0.232 0205 0181 0125 0111 0099 0088 0078 0069 0 062 0055 0049 0044 15 0,555 0481 0.417 0.362 0.315 0.275 0.239 0209 0183 0160 0140 0123 0108 0.095 0084 0.074 0.065 0.057 0.051 0.045 0040 0035 16 0.534 0458 0.394 0.339 0292 0252 0.218 0188 0163 0141 0.123 0107 0.093 0.081 0071 0062 0054 0047 0042 0036 0.032 0028 17 0.513 0436 0.371 0.317 0.270 0.231 0198 0.170 0146 0125 0108 0093 0080 0069 0060 0052 0045 0.039 0.034 0030 0.026 0023 18 0.494 0416 0.350 0.296 0250 0.212 0180 0.153 0130 0.111 0095 0.081 0069 0.059 0051 0.044 0038 0.032 0.028 0.024 0.021 0018 19 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0060 0.051 0043 0037 0031 0.027 0.023 0.020 0017 0014 20 0.456 0.377 0.312 0258 0215 0178 0149 0124 0104 0087 0073 0.061 0051 0.043 0037 0.031 0.026 0.022 0019 0.016 0014 0012 21 0.439 0.359 0.294 0242 0199 0.164 0135 0112 0.093 0.077 0.064 0053 0.044 0.037 0031 0026 0022 0018 0015 0.013 0011 0.009 22 0.422 0342 0278 0226 0184 015 0123 0101 0.083 0.068 0056 0046 0038 0032 0026 0.022 0018 0015 0013 0011 0009 0007 0.406 0326 0.262 0211 23 0170 0138 0112 0.091 0.074 0.060 0.049 0.040 0033 0.027 0022 0.018 0015 0012 0010 0.009 0.007 0.006 0.390 0310 0.247 0197 24 0.015 0013 0010 0008 0.007 0.006 0005 0158 0126 0102 0.082 0.066 0.053 0043 0.035 0028 0023 0019 25 0.375 0295 0.233 0184 0.146 0116 0.092 0.074 0.059 0.047 0.038 0.030 0024 0.020 0016 0013 0010 0009 0007 0.006 0.005 0.004 26 0.361 0,281 0.220 0172 0135 0,106 0084 0,.066 0053 0042 0033 0,026 0021 0017 0014 0011 0.009 0.007 0.006 0005 0.004 0003 27 0.347 0268 0.207 0161 0.125 0.098 0.076 0.060 0.047 0.037 0029 0.023 0018 0.014 0011 0.009 0.007 0.006 0.005 0.004 0.003 0002 28 0.333 0.255 0.196 0,150 0.116 0.090 0.069 0.054 0042 0.033 0026 0.020 0016 0.012 0.010 0.008 0006 0005 0.004 0003 0002 0002 29 0.321 0243 0185 0141 0107 0.082 0.063 0.048 0.037 0.029 0022 0017 0014 0011 0008 0006 0005 0004 0003 0.002 0.002 0.002 30 0.308 0231 0174 0131 0.099 0075 0057 0044 0033 0.026 0020 0015 0012 0009 0007 0.005 0004 0.003 0003 0002 0.002 0001 40 0.208 0142 0097 0.067 0046 0.032 0.022 0015 0011 0008 0005 0.004 0.003 0.002 0.001 0.001 0001 0.000 0.000 0.000 0.000 0.000 EXHIBIT 12B-2 Present Value of an Annuity of $1 in Arrears; - 10% 11% Periods 4% 5% 6% 7% 8% 9% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0885 0877 0.870 0.862 0855 0847 0.840 0833 0.826 0820 0813 0.806 0800 1,605 1.585 1,566 1.547 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1668 1.647 1626 1.528 1.509 1.492 1.474 1457 1.440 1.952 3 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2402 2.361 2.322 2.283 2.246 2.210 2.174 2140 2.106 2.074 2.042 2.011 1.981 2.690 2.639 2.589 2.540 2 494 2.448 2.404 2.362 3.630 3546 4 3.465 3.387 3.312 3.240 3.170 3.102 3037 2.974 2.914 2.855 2.798 2.743 3.696 3.605 3.517 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.433 3.352 3.274 3199 3.127 3.058 2991 2.926 2.864 2.803 2.745 2.689 5.242 5076 4.486 4.355 4.231 4111 6 4.917 4.767 4.623 3.998 3889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3167 3.092 3.020 2.951 7 5.786 5.582 5,389 5.206 5.033 4868 4.712 4.039 3.922 3.812 3.706 3.605 3.508 3416 3.327 3242 3.161 6,002 4,564 4423 4.288 4160 8 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 4799 4.639 4487 4.344 4.207 4.078 3.954 3.837 3.726 3619 3.518 3.421 3.329 6.802 7.435 7108 6.515 6.247 5.995 5.7595.537 5.328 5.132 4.946 4772 4607 4.451 4.303 4163 4.031 3.905 3.786 3.673 3566 3.463 10 8111 7722 7.360 7024 6.710 6418 6.145 5.889 5.650 5426 5.216 5.019 4833 4.659 4.494 4.339 4.192 4.054 3.923 3799 3.682 3.571 6.805 6.495 6.207 5.938 5.687 5.453 5234 5.029 4836 4.656 4486 4.327 41774035 3.902 3.776 8.760 8.306 11 7.887 7.499 7139 3.656 9.385 8.863 3.725 12 8.384 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5197 4.988 4793 4611 4.439 4.278 4.127 3.985 3.851 13 9.986 9.394 8.853 8.358 7904 7.487 7103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4715 4.533 4.362 4.203 4.053 3.912 3.780 14 10.563 9.899 9.295 8.745 8.244 7786 7.367 6982 6.628 6.302 6.002 5.724 5468 5.229 5.008 4802 4.611 4.432 4.265 4.108 3.962 3.824 8.061 7606 7191 6.462 6142 15 11.118 10.380 9.712 9.108 8559 6.811 5.847 5575 5.324 5.092 4.876 4.675 4489 4.315 4.153 4.001 3.859 16 11.652 10838 10,106 9.447 8.851 8.313 7824 7.379 6.974 6.604 6.265 5.954 5.668 5.405 5162 4938 4730 4.536 4357 4.189 4033 3.887 17 12.166 11.274 10.477 9.763 9122 8.544 8.022 7549 7120 6.729 6.373 6.047 5.749 5475 5.222 4.990 4775 4576 4.391 4219 4.059 3.910 10.828 10.059 9.372 4.243 4.080 3.928 18 12.659 11.690 8.756 8.201 7702 7.250 6.840 6.467 6128 5.818 5.534 5.273 5.033 4812 4608 4.419 19 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7839 7366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 4442 4.263 4.097 3.942 4.870 4.657 4.460 4.279 4.110 20 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7469 7025 6623 6.259 5.929 5.628 5.353 5.101 3.954 14.029 12821 11764 10.836 10.017 9.292 8.649 8.075 7562 7102 6.687 6.312 5973 5.665 5.384 5.127 4.891 4675 4476 4292 4121 3.963 14.451 13163 22 12.042 11.061 10.201 9.442 8.772 8176 7.645 7.170 6743 6.359 6.011 5.696 5410 5.149 4.909 4690 4.488 4302 4.130 3.970 14.857 13.489 12.303 11.272 9.580 8.883 8.266 7718 7.230 4.925 4.703 4.499 4.311 3.976 23 10.371 6792 6.399 6.044 5.723 5.432 5.167 4.137 3.981 24 15.247 13.799 12.550 11469 10.529 9.707 8.985 8.348 7784 7.283 6.835 6.434 6.073 5.746 5.451 5182 4.937 4.713 4.507 4.318 4,143 3.985 25 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7843 7.330 6.873 6.464 6.097 5766 5.467 5195 4948 4721 4514 4323 4147 8.488 7896 7.372 6.906 6 491 6118 15.983 14.375 13.003 11.826 10810 5.783 5,480 5.206 4956 4728 4520 4.328 4151 26 9.929 9161 3.988 16.330 14.643 13.211 11987 4.524 4.332 4154 27 10.935 10.027 9.237 8548 7943 7409 6.935 6.514 6136 5.798 5.492 5.215 4964 4734 3990 28 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7984 7.441 6.961 6.534 6.152 5.810 5.502 5.223 4970 4739 528 4.335 4157 3.992 16.984 15.141 29 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4531 4.337 4.159 3.994 30 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7496 7003 6.566 6.177 5.829 5.517 5.235 4979 4746 4.534 4.339 4160 3.995 40 19.793 17159 15.046 13.332 11.925 10757 9.779 8.951 8.244 7.634 7105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4.544 4.347 4166 3.999