Ursus, Inc., is considering a project that would have a eight-year life and would require a $2,904,000 investment in equipment. At the end of eight years, the project would terminate and the equipment would have no salvage value. The project would provide net operating Income each year as follows (Ignore income taxes.): $2,600,000 1,650,000 950,000 Sales Variable expenses Contribution margin Fixed expenses Fixed out-of-pocket cash expenses Depreciation Net operating income $290,000 363,000 653,000 $ 297,000 Click here to view Exhibit 13B-1 and Exhibit 13B-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 11%. Required: a. Compute the project's net present value. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) a. Net present value EXHIBIT 13B-1 Present Value of $1: 11.1) 1 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 1 2 3 4 5 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 2.404 0.376 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 6 7 8 9 10 11 12 13 14 15 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 16 17 18 19 20 21 22 23 24 25 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 ( 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.112 0.093 0.077 ( 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.091 0.074 0.060 C 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.082 0.066 0.053 G 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0.053 0.042 0 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.060 0.047 0.037 O 0.333 0.255 0.196 0.150 0.116 0.090 0.069 0.054 0.042 0.033 0 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.048 0.037 0.029 0. 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0.026 0. 26 27 28 29 30 40 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0.011 0.008 0. EXHIBIT 13B-2 Present Value of an Annuity of $1 in Arrears: Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13 1 2 3 4 5 0.962 0.952 0.943 0.935 1.886 1.859 1.833 1.808 2.775 2.723 2.673 2.624 3.630 3.546 3.465 3.387 4.452 4.329 4.212 4.100 0.926 1.783 2.577 3.312 3.993 0.917 0.909 0.901 0.893 0.8 1.759 1.736 1.713 1.690 1.6 2.531 2.487 2.444 2.402 2.38 3.240 3.170 3.102 3.037 2.97 3.890 3.791 3.696 3.605 3.5 6 7 8 9 10 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 3.99 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 4.42 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 0968 4.79 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.13 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 5.42 11 12 13 14 15 8.760 8.306 7.887 7.499 7.139 6.805 6.495 6.207 5.938 5.687 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.492 6.194 5.91 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 6.122 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6.628 6.302 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6.811 6.462 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 6.974 6.604 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.549 7.120 6.729 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 7.250 6.840 13.134 12.085 11.158 10.336 9.604. 8.950 8.365 7.839 7.366 6.938 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7.469 7.025 16 17 18 19 20 21 22 23 24 25 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7.562 7.102 E 14.451 13.163 12.042 11.061 10.201 9.442 8.772 8.176 7.645 7.170 E 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 7.718 7.230 6 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7.784 7.283 6 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 7.330 6. 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7.372 6. 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 6. 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7.984 7.441 6.5 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6.5 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7.496 7.C 26 27 28 29 30 40 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.1