Windsor Co. purchased some equipment 3 years ago. The company's required rate of return is 12%, and the net present value of the project was $(700). Annual cost savings were: $11000 for year 1:9000 for year 2: and $7000 for year 3. The amount of the initial investment was PV of an Annuity Year of 1 at 12% Present Value of 1 at 12% 0.893 0.797 0.712 1 0.893 1.690 2 3 2.402 $21280 O $20918 $22680 $22318 9% 91743 .84168 77218 .70843 .64993 TABLE 3 Present Value of 1 (n) Periods 4% 5% 1 .96154 95238 .92456 .90703 .88900 .86384 .85480 .82270 .82193 .78353 .79031 .74622 .75992 -71068 .73069 .67684 .70259 .64461 10 .67556 .61391 11 .64958 .58468 12 .62460 .55684 13 .60057 .53032 14 .57748 .50507 15 55526 .48102 16 .53391 45811 17 51337 43630 18 49363 41552 19 47464 39573 20 45639 .37689 -NMONOENM008 6% .94340 .89000 .83962 .79209 .74726 .70496 .66506 .62741 .59190 .55839 .52679 -49697 .46884 44230 11727 39365 .37136 35034 33051 31180 7% 0.93458 0.87344 0.81630 0.76290 0.71299 0.66634 0.62275 0.58201 0.54393 0.50835 0.47509 0.44401 0.41496 0.38782 0.36245 0.33873 0.31657 0.29586 0.27615 0.25842 8% 92593 .85734 79383 .73503 .68058 .63017 .58349 .54027 50025 .46319 42888 39711 36770 34046 31524 29189 27027 .25025 23171 21455 .59627 54703 50187 .46043 42241 38753 35554 32618 29925 27454 25187 23107 21199 19449 17843 10% .90909 .82645 .75132 .68301 .62092 156447 51316 .46651 42410 38554 35049 31863 28966 .26333 .23939 121763 .19785 17986 16351 14864 11% .90090 .81162 .73119 .65873 .59345 53464 48166 .43393 .39092 35218 31728 28584 25751 23199 20900 18829 .16963 .15282 .13768 .12403 12% .89286 .79719 .71178 .63552 -56743 .50663 45235 40388 .36061 -32197 .28748 125668 .22917 .20462 .18270 .16312 .14564 .13004 11611 10367 15% .86957 .75614 .65752 57175 .49718 .43233 .37594 32690 .28426 .24719 21494 .18691 .16253 .14133 .12289 10687 109293 08081 .07027 .06110 10% TABLE4 Present Value of an Annuity of 1 (n) Payments 4% 5% 6% 7% 1 .96154 95238 94340 0.93458 2 1.88609 1.85941 1.83339 1.80802 3 2.77509 2.72325 2.67301 2.62432 4 3.62990 3.54595 3.46511 3.38721 5 4.45182 4.32948 4.21236 4.10020 6 5.24214 5.07569 4.91732 4.76654 7 6.00205 5.78637 5.58238 5.38929 8 6.73274 6.46321 6.20979 5.97130 9 7.43533 7.10782 6.80169 6.51523 10 8.11090 7.72173 7.36009 7.02358 11 8.760481 8.30641 7.88687 7.49867 12 9.38507 8.86325 8.38384 7.94269 13 9.98565 9.39357 8.85268 8.35765 14 10.56312 9.89864 9.29498 8.74547 15 11.11839 10.37966 9.71225 9.10791 16 11.65230 10.83777 10,10590 9.44665 17 12.16567 11.27407 10.47726 9.76322 18 12.65930 11.68959 10.82760 10.05909 19 13.13394 12.08532 11.15812 10,33560 20 13.59033 12.46221 11.46992 10.59401 8% 92593 1.78326 2.57710 3.31213 3.99271 4.62288 5.20637 5.74664 6.24689 6.71008 7.13896 7.53608 7.90378 8.24424 8.55948 8.85137 9.12164 9.37189 9.60360 9.81815 9% 91743 1.75911 2.53130 3.23972 3.88965 4.48592 5.03295 5.53482 5.99525 6.41766 6,80519 7.16073 7.48690 7.78615 8,06069 8.31256 8,54363 8.75563 8.95012 9.12855 .90909 1.73554 2.48685 3.16986 3.79079 4.35526 4.86842 5.33493 5.75902 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7,82371 8.02155 8.2 0141 8.36492 8.51356 11% .90090 1.71252 2.44371 3.10245 3.69590 4.23054 4.71220 5.14612 5.53705 5.88923 6.20652 6.49236 6.74987 6.98187 7.19087 7.37916 7.54879 7.70162 7.83929 7.96333 12% .89286 1.69005 2.40183 3.03735 3.60478 4.11141 4.56376 4.96764 5.32825 5.65022 5.93770 6.19437 6.42355 6,62817 6.81086 6.97399 7.11963 7.24967 7.36578 7.46944 15% .86957 1.62571 2.28323 2.85498 3.35216 3.78448 4.16042 4.48732 4.77158 5,01877 5.23371 5.42062 5.58315 5.72448 5.84737 5.95424 6.04716 6.12797 6.19823 6.25933