Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $125,961. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,200, and annual cash outflows would increase by $39,900. The companys required rate of return is 9%. Click here to view PV table.

TABLE 3 Present Value of 1 (n) 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% Periods 95238 93458 .90909 1 96154 .94340 92593 91743 .90090 .89286 86957 79719 2 92456 90703 .89000 87344 85734 84168 82645 81162 75614 73119 3 88900 .86384 .83962 81630 .79383 77218 75132 71178 65752 4 .65873 85480 .82270 79209 76290 73503 70843 68301 63552 .57175 82193 78353 5 74726 71299 68058 64993 62092 .59345 56743 49718 6 79031 74622 70496 66634 63017 59627 .56447 .53464 .50663 43233 7 54703 75992 71068 66506 62275 .58349 .51316 48166 45235 37594 43393 32690 8 73069 67684 .62741 58201 .54027 .50187 46651 40388 9 70259 .64461 .59190 54393 .50025 .46043 42410 39092 .36061 28426 .6139 50835 46319 42241 32197 10 67556 55839 .38554 35218 24719 64958 28748 11 .58468 52679 47509 42888 38753 35049 .31728 21494 12 62460 55684 49697 44401 39711 35554 .31863 .28584 25668 .18691 13 60057 53032 46884 .41496 36770 32618 28966 25751 22917 16253 20462 14 57748 50507 44230 38782 34046 29925 26333 23199 14133 15 .55526 48102 41727 36245 31524 27454 .23939 20900 .18270 12289 33873 21763 16312 16 53391 45811 39365 29189 25187 18829 .10687 .43630 37136 09293 17 51337 31657 27027 23107 .19785 .16963 14564 18 49363 41552 35034 29586 25025 21199 17986 .15282 .13004 08081 19 .47464 39573 .33051 27615 23171 .19449 16351 13768 .11611 07027 20 45639 31180 17843 37689 25842 21455 .14864 12403 .10367 06110