XYZ Company is considering the purchase of a new piece of equipment and has gathered the following information about the purchase: ....... ? Initial investment ........ Annual cost savings ......... Salvage value in 6 years .. Repair in 4 years .......... Cost of capital .............. Life of project $20,000 30% of original cost of the equipment $21,000 10% 6 years .... The net present value of this investment was calculated to be $22,924. Calculate the salvage value for this piece of equipment. Ignore income tax effects. You will need to use the present value table factors posted in carmen to answer this question. To access these factors, click modules and then scroll to the capital budgeting topic. Click on the link labeled present value table factors. No credit will be awarded for this question using a means other than these table factors to answer this question. Present Value of a Lump-Sum Periods auw 8 Rate of interest per period in percent 3% 5% 8% 9% 10% 12% 14% 0.97090.9524 0.9259 0.9174 0.9091 0.8929 0.8772 0.9426 0.9070 0.8573 0.8417 0.8265 0.7972 0.7695 0.9151 0.8638 0.7938 0.7722 0.7513 0.7118 0.6750 0.8885 0.8227 0.7350 0.7084 0.6830 0.6355 0.5921 0.8626 0.7835 0.6806 0.6499 0.62090.5674 0.5194 0.8375 0.7462 0.6312 0.5963 0.5645 0.5066 0.4556 0.8131 0.7107 0.5835 0.5470 0.5132 0.4523 0.3996 0.7894 0.6768 0.5403 0.5019 0.4665 0.40390.3506 0.7664 0.6446 0.5003 0.4604 0.4240 0.3606 0.3075 0.7441 0.6139 0.4630 0.4224 0.3855 0.3220 0.2697 0.7014 0.5568 0.3971 0.3555 0.3186 0.2567 0.2076 0.64190.4810 0.3152 0.2745 0.2394 0.1827 0.1401 0.6232 0.4581 0.2919 0.2519 0.2176 0.1631 0.1229 0.6050 0.4363 0.27030.2311 0.1978 0.1456 0.1078 0.5874 0.4155 0.2503 0.2120 0.1799 0.13000.0946 0.5703 0.3957 0.2317 0.1945 0.1635 0.11610.0829 0.5537 0.3769 0.2146 0.1784 0.1486 0.10370.0728 0.5375 0.3589 0.1987 0.1637 0.1351 0.0926 0.0638 0.4920 0.3101 0.1577 0.1264 0.1015 0.0659 0.0431 0.4776 0.29530.1460 0.1160 0.0923 0.0588 0.0378 10 15% 16% 20% 0.8696 0.8621 0.8333 0.7561 0.7432 0.6944 0.6575 0.6407 0.5787 0.5718 0.5520 0.4823 0.4972 0.4761 0.4019 0.4323 0.4104 0.3349 0.37590.3538 0.2791 0.3269 0.3050 0.2326 0.2843 0.26300.1938 0.2472 0.2267 0.1615 0.1869 0.1685 0.1122 0.1229 0.1079 0.0649 0.1069 0.0930 0.0541 0.0929 0.0802 0.0471 0.0808 0.0691 0.0376 0.0703 0.0596 0.0313 0.0611 0.0514 0.0261 0.0531 0.0443 0.0217 0.0349 0.0284 0.0126 0.0304 0.0245 0.0105 12 15 16 17 18 19 20 21 24 25 Present Value of an Annuity 16% 0.8621 1.6052 2.2459 2.7982 3.2743 3.6847 Periods 3% 5% 0.9709 0.9524 1.9135 1.8594 2.8286 2.7233 3.7171 3.5460 4.5797 4.3295 6 5.4172 5.0757 6.2303 5.7864 7.0197 6.4632 7.7861 7.1078 10 8.5302 7.7217 12 9.9540 8.8633 15 11.9379 10.3797 16 12.5611 10.8378 17 13.1661 11.2741 18 13.7535 11.6896 19 14.3238 12.0853 20 14.8775 12.4622 21 15.4150 12.8212 25 17.4132 14.0939 Rate of interest per period in percent 8% 9% 10% 12% 14% 15% 0.9259 0.9174 0.9091 0.8929 0.8772 0.8696 1.7833 1.7591 1.7355 1.6901 1.6467 1.6257 2.5771 2.5313 2.48692.4018 2.3216 2.2832 3.3121 3.2397 3.1699 3.0374 2.9137 2.8550 3.9927 3.88973.7908 3.6048 3.4331 3.3522 4.62294.48594.3553 4.1114 3.8887 3.7845 5.2064 5.0330 4.8684 4.5638 4.2883 4.1604 5.7466 5.5348 5.33494.9676 4.63894.4873 6.2469 5.9953 5.7590 5.3283 4.9464 4.7716 6.7100 6.4177 6.1446 5.6502 5.21615.0188 7.5361 7.1607 6.8137 6.1944 5.6603 5.4206 8.5595 8.0607 7.6061 6.81096.1422 5.8474 8.8514 8.3126 7.8237 6.9740 6.2651 5.9542 9.1216 8.5436 8.0215 7.1196 6.37296.0472 9.3719 8.7556 8.2014 7.2497 6.4674 6.1280 9.6036 8.9501 8.36497.36586.5504 6.1982 9.8182 9.1286 8.51357.4694 6.6231 6.2593 10.0168 9.2922 8.6487 7.5620 6.68706.3125 10.6748 9.8226 9.0770 7.8431 6.87296.4641 4.3436 4.6065 4.8332 5.1971 5.5755 5.6685 5.7487 5.8178 5.8775 5.9288 5.9731 6.0971 20% 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 4.4392 4.6755 4.7296 4.7746 4.8122 4.8435 4.8696 4.8913 4.9476