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William Bat became a baseball enthusiast at a very early age. All of his baseball experience has provided him valuable knowledge of the sport,

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William Bat became a baseball enthusiast at a very early age. All of his baseball experience has provided him valuable knowledge of the sport, and he is thinking about going into the batting cage business. He estimates the construction of a state-of-the-art building and the purchase of necessary equipment will cost $886,000. Both the facility and the equipment will be depreciated over 12 years using the straight-line method and are expected to have zero salvage values. His required rate of return is 9% (present value factor of 7.16073). Estimated annual net income is as follows: Revenue $371,500 Less: Utility cost $43,500 Supplies $11,500 Labor 144,500 Depreciation 73,500 Other 42,000 315,000 Net income $56,500 SU TABLE 1 Future Value of 1 (n) Periods 4% 0 1.00000 1 1.04000 2 1.08160 1.10250 1.12360 3 1.12486 1.15763. 5% 6% 7% 1.00000 1.00000 1.00000 1.05000 1.06000 1.07000 1.14490 1.22504 8% 1.19102 4 1.16986. 1.21551 1.26248 1.31080 5 1.21665 1.27628 1.33823 1.40255 6 1.26532 1.34010 7 1.31593 1,40710 1.41852 1.50363 8 1.36857 1.47746 1.59385 9 1.42331 1.55133 1.68948 10 1.48024 1.62889 11 1.53945 1.71034 12 1.60103 1.79586 13 1.66507 1.88565 14 15 16 17 18 19 20 9% 10% 1.00000 1.00000 1.00000 1.08000 1,09000 1.10000 1.11000 1.16640 1.18810 1.21000 1.23210 1.25971 1.29503 1.33100 1.36763 1.40493 1.52088 1.36049 1.41158 1.46410 1.51807 1.57352 1.74901 1.46933 1.53862 1.61051 1.68506) 1.76234 2.01136 1.50073 1.58687 1.67710 1.77156 1.87041 1.97382 1.60578 1.71382 1.82804 1.94872 2.07616 2.21068 2.66002 1.71819 1.85093 1.99256 2.14359 2.30454 2.47596 3.05902 1.83846 1.99900 2.17189 2.35795 2.55803 2.77308 3.51788 1.79085 1.96715 2.15892 2.36736 2.59374 2.83942 3.10585 4.04556 1.898301 2.10485 2.33164 2.58043 2.85312 3.15176 3.47855 4.65239 2.01220 2.25219 2.51817 2.81267 3.13843 3.49845) 3.89598 5.35025 2.13293 2.40985 2.71962 3.06581 3.45227 3.88328 4.36349 1.73168 1.97993 2.26090 2.57853 2.93719 3.34173 3.79750 4.31044 4.88711 7.07571 1.80094 2.07893 2.39656 2.75903 3.17217 3.64248 4.17725 4.78459 5.47357 8.13706 1.87298 2.18287 2.54035 2.95216 3.42594 3.97031 4.59497 5.31089 6.13039 9.35762 1.94790 2.29202 2.69277 3.15882 3.70002 4.32763 5.05447 5.89509 6.86604 10.76126 2.02582 2.40662 2.85434 3.37993 3.99602 4.71712 5.55992 6.54355 7.68997 12.37545 2.10685 2.52695 3.02560 3.61653 4.31570 5.14166 6.11591 7.26334 8.61276 14.23177 2.19112 2.65330 3.20714 3.86968 4.66096 5.60441 6.72750 8.06231 9.64629 16.36654 11% 1.00000 12% 15% 1.00000 1.12000 1.15000 1.00000 1.25440 1.32250 2.31306. 6.15279 TABLE 2 Future Value of an Annuity of 1 (n) Payments 4% 2345 68119 12% 15% 11% 5% 6% 8% 10% 7% 9% 1.00000 1.00000 1.00000 1.0000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2.04000 2.05000 2.06000 2.0700 2.08000 2.09000 2.10000 2.11000 2.12000 2.15000 3.12160 3.15250 3.18360 3.2149 3.24640 3.27810 3.31000 3.34210 3.37440 3.47250 4.24646 4.31013 4.37462 4.4399 4.50611 4.57313 4.64100 4.70973 4.77933 4.99338 5.41632 5.52563 5.63709 5.7507 5.86660 5.98471 6.10510 6.22780 6.35285 6.74238 6.63298 6.80191 6.97532 7.1533 7.33592 7.52334 7.71561 7.91286 8.11519 8.75374 7.89829 8.14201 8.39384 8.6540 8.92280 9.20044 9.48717 9.78327 10.08901 11.06680 9.21423 9.54911. 9.89747 10.2598 10.63663 11.02847 11.43589 11.85943 12.29969 13.72682 10.58280 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584 12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 17.54874 20.30372 13.48635 14.20679 14.97164 15.7836 16.64549 17.56029 18.53117 19.56143 20.65458 24.34928 15.02581 15.91713 16.86994 17.8885 18.97713 20.14072 21.38428 22.71319 24.13313 29.00167 16.62684 17.71298 18.88214 20.1406 21.49530 22.95339 24.52271 26.21164 28.02911 34.35192 18.29191 19.59863 21.01507 22.5505 24.21492 26.01919 27.97498 30.09492 32.39260 40.50471 20.02359 21.57856 23.27597 25.1290 27.15211 29.36092 31.77248 34.40536 37.27972 47.58041 16 21.82353 23.65749 25.67253 27.8881 30.32428 33.00340 35.94973 39.18995 42.75328 55.71747 23.69751 25.84037 28.21288 30.8402 33.75023 36.97351 40.54470 44.50084 48.88367 65.07509 25.64541 28.13238 30.90565 33.9990 37.45024 41.30134 45.59917 50.39593 55.74972 75.83636 27.67123 30.53900 33.75999 37.3790 41.44626 46.01846 51.15909 56.93949 63.43968 88.21181 29.77808 33.06595 36.78559 40.9955 45.76196 51.16012 57.27500 64.20283 72.05244 102.44358 10 11 12 13 14 15 17 18 19 20 TABLE 3 Present Value of 1 (n) Periods 5% 11 1234567890 12345 61699 4% .96154 .95238 .94340 .92456 .90703 .89000 .88900 .86384 .83962 .85480 .82270 .79209 .82193 .78353 .74726 .70496 .66506 6% 7% 8% 9% 10% 11% 12% 15% 0.93458 .92593 .91743 .90909 .90090 .89286 .86957 0.87344 .85734 0.81630 0.76290 0.71299 .68058 .84168 .79383 .77218 .82645 .81162 .75132 .73119 .71178 .79719 .75614 .65752 .73503 .70843 .68301 .65873 .63552 .57175 .64993 .62092 .59345 .56743 49718 .73069 .79031 .74622 .75992 .71068 .67684 .62741 0.66634 .63017 .59627 .56447 .53464 .50663 43233 0.62275 .58349 .54703 .51316 .48166 45235 37594 0.58201 54027 .50187 .46651 .43393 .40388 .32690 .70259 .64461 .59190 0.54393 50025 46043 .42410 .39092 .36061 28426 .67556 .61391 .55839 0.50835 .46319 .42241 .38554 .35218 .32197 24719 64958 .58468 .52679 0.47509 42888 38753 35049 .31728 28748 .21494 .62460 55684 49697 0.44401 39711 .35554 .31863 .28584 25668 .18691 .60057 53032 46884 0.41496 .36770 .32618 .28966 .25751 22917 .16253 57748 50507 44230 0.38782 34046 29925 .26333 .23199 20462 .14133 5552 .48102 41727 0.36245 .31524 .27454 23939 .20900 18270 .12289 53391 45811 .39365 0.33873. 29189 25187 21763 .18829 .16312 17 51337 .10687 43630 .37136 0.31657 27027 23107 .19785 .16963 .14564 18 49363 .09293 41552 35034 0.29586 .25025 21199 .17986 .15282 47464 .13004 39573 33051 0.27615 08081 23171 .19449 .16351 .13768 20 .11611 45639 37689 .31180 0.25842 21455 .07027 .17843 .14864 .12403 10367 .06110 TABLE 4 Present Value of an Annuity of 1 (12) Payments 4% 5% -2345 .96154 .95238 678901RRALLERS 8.11090 11 8.76048 8.30641 12 9.38507 8.86325 13 9.98565 14 7% .94340 0.93458 1.88609 1.85941 1.83339 1.80802 2.77509 2.72325 2.67301 2.62432 3.62990 3.54595 3.46511 3.38721 4.45182 4.32948 4.21236 4.10020 5.24214 5.07569 4.91732 4.76654 6.00205 5.78637 5.58238 5.38929 6.73274 6.46321 6.20979 5.97130 7.43533 7.10782 6.80169 6.51523 7.72173 7.36009 7.02358 7.88687 7.49867 8.38384 7.94269 9.39357 8.85268 8.35765 10.56312 9.89864 9.29498 8.74547 6% 8% 9% 10% 11% .92593 .91743 .90909 .90090 .89286 .86957 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 6.24689 5.99525 5.75902 4.77158 6.71008 6.41766 6.14457 5.65022 5.01877 7.13896 6.80519 6.49506 5.23371 7.53608 7.16073 6.81369 7.90378 7.48690 7.10336 12% 15% 6.49236 5.53705 5.32825 5.88923 6.20652 5.93770 6.19437 5.42062 6.74987 6.42355 5.58315 15 11.11839 10.37966 9.71225 9.10791 8.24424 8.55948 8.06069 7.60608 7.78615 7.36669 6.98187 6.62817 5.72448 7.19087 6.81086 5.84737 11.65230 12.16567 11.27407 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 10.47726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.2 0141 7.70162 7.24967 6.12797 13.13394 12.08532 11.15812 10.33560 9.60360 8.95012 8.36492 7.83929 7.36578 6.19823 20 13.59033 12.46221 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933 (a) The net present value. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to O decimal places, eg. 5,275.) Net present value $

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