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XYZ, Inc., Is thinking about investing in stuff that would have a useful life of 9 years. They use a discount rate of 16%. The

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XYZ, Inc., Is thinking about investing in stuff that would have a useful life of 9 years. They use a discount rate of 16%. The NPV of the stuff, not counting the salvage value, is -$579,623. (Ignore Income taxes.) Click here to view Exhibit 138-1 and Exhibit 138-2. to determine the appropriate discount factor(s) using the tables provided. How big would the salvage value of the stuff have to be to make buying the stuff financially attractive? (Round your Intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice $57.623 $92,740 $3.622.544 EXHIBIT 138-1 Present Value of $t: al Periods 4% 5% 6% 7 8X 9% 10 11 12% 13% 14 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0.943 0.935 0.926 0917 0.909 0.901 0.893 0.885 0.877 0,870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0756 0.743 0731 0.718 0706 0.694 0.683 0.672 0661 0.650 0,640 3 0.889 0.864 0.840 0,316 0.794 0.772 0.751 0.731 0.712 0.693 0675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0,537 0.524 0.512 4 0.855 0.823 0.792 0463 0735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0437 0423 0410 5 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 6 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0 507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.299 0.275 0252 7 0.750 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 8 0.731 0677 0.627 0582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 9 0.703 0,645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0 180 0.167 0.155 0.144 0.134 10 0676 0.614 0.558 0508 0463 0.422 0.386 0352 0.322 0.295 0.270 0.247 0.227 0 208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0237 0.215 0.105 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 12 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0,124 0.112 0.102 0.092 0083 0.076 0.069 13 0.601 0.530 0.459 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0,182 0.163 0.145 0.130 0.116 0.104 0,093 0.084 0.075 0.068 067 0.055 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0232 0.205 0.181 0.160 0.41 0.125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.200 0.183 0.160 0.140 0.123 0100 0.005 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0.035 16 0.534 0.458 0.394 0.339 0.292 0252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0071 0062 0.054 0.047 0.042 0036 0032 0.020 17 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.10 0.003 0.00 0.069 0.060 0,052 0,045 0,039 0034 0.030 0026 0.023 0.494 0.416 0.30 0.296 0.250 0212 0.180 0.153 0.130 0.111 0.005 0.001 0.00 0.050 0.051 0044 003 0.037 0028 0.024 0.021 0.018 10 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.008 0.003 0.070 0.060 0051 0.043 0.032 0.031 0.027 0023 0.020 0.017 0014 20 0.456 0377 0.312 0.250 0.215 0.178 0 140 0.124 0.104 0.087 0,073 0.061 0.051 0043 0037 0.031 0.026 0022 0.019 0016 0.014 0.012 21 0.439 0.350 0.204 0 242 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0053 0.044 0037 0.031 0.025 0.022 0.018 0015 0.013 0011 0009 22 0.422 0.342 0.278 0.226 0.184 0150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.025 0.022 0018 0.015 0.013 0.011 0.000 0.007 23 0.406 0.326 0.262 0211 0.170 0.138 0112 0001 0.074 0.060 0049 0.040 0.033 0.027 0.022 0,018 0,015 0,012 0010 0.00 0.007 0.006 24 0390 0.310 0.247 0.17 0.15 0.126 0.102 0082 0.066 0.053 0043 0.035 0.028 0.025 0.019 0,015 0,013 0010 0.000 0.007 0.006 0.005 25 0.375 0.295 0 233 0.184 0146 0.116 0.092 0074 0059 0.047 0.000 0.00 0.024 0.020 0016 0013 0010 0000 0.007 0.006 0.005 0.004 25 0.361 0.281 0.220 0.172 0.125 0.106 0.084 0.066 0.053 0,042 0.033 0.026 0.021 0.017 0014 0011 0.000 0.002 0.006 0.005 0.004 0.003 27 0347 0.250 0.207 0.161 0.125 0.098 0076 0060 0047 0.037 0029 0023 0.018 0014 0011 0009 0.007 0.006 0.005 0.004 0.003 0.002 28 0.333 0.265 0.196 0.150 0.116 0.090 0.009 0.054 0042 0033 0.025 0.020 0,016 0012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 29 0321 0.243 0.185 0.141 0.107 0.002 0.053 0.048 0.037 0.029 0,022 0.017 0014 0011 0008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 30 0 308 0.231 0.174 0131 0.099 0.075 0.057 0044 0.033 0.026 0.020 0,015 0,012 0.000 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 40 0.208 0.142 0.097 0.067 0.046 0032 0.022 0.015 0011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0001 0.000 0.000 0.000 0.000 0.000 la 24 EXHIBIT 13B-2 Present Value of an Annuity of $1 in Arrears, UN Periods 4% 5% 7% BE 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2 1886 1.859 1833 1808 .783 1.759 1.736 1.713 1.690 1.668 1647 1626 1.605 1.585 1.565 1.547 1.528 1.509 1.492 1.474 1,457 1.440 3 2.775 2.723 2673 2.624 2.577 2531 2.487 2.444 2.402 2361 2.322 2283 2246 2210 2.174 2.140 2.106 2074 2042 2.011 1.981 1.952 4 2630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2914 2.855 2.798 2.743 2690 2639 2.589 2540 2494 2.448 2.404 2.362 5 4.452 4.329 4212 4.100 3.993 3.890 3.791 3.696 3.605 3,517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2864 2.803 2.745 2.689 6 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3685 3.589 2.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 7 6,002 5.786 5.582 5.389 5.206 5,033 4.868 4712 4.564 4423 4.288 4.160 4,039 3922 3812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 8 6.733 6.463 6.210 5971 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4078 3.954 3.837 3.726 3.619 518 3.421 3.329 9 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.132 4946 4772 4.607 4451 4.303 4.163 4,091 3.905 3.786 3.673 3.566 3.463 10 8.111 7.722 7.360 7024 6.710 6.418 6.145 5.889 5.650 5426 5216 5.019 4.833 4.659 4494 4339 4.192 4.054 3.923 3.799 3.682 3.571 11 8.760 8.306 78877499 7.139 6.805 6.495 6.207 5,938 5687 5.453 5.234 5.029 4836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 12 9.385 8.863 8.384 7943 7536 7.161 6.814 6.492 6.194 5918 5.660 5.421 5.197 4988 4.793 4,611 4439 4278 4.127 3.985 3.851 3.725 13 9.986 9.394 8.853 8.358 7.904 7487 7.103 6.750 6.424 6. 122 5.842 5.583 5.342 5.118 4910 4715 4.533 4.362 4203 4.053 3.912 3.780 10 10.563 9.899 9.295 8.745 8.244 7.786 7367 6.982 6,628 6 302 6.002 5.724 5.468 5.229 5.003 4802 4611 4 432 4.265 4108 3.962 1824 15 11.118 10 380 9.712 9.108 8.559 8.061 7.606 7.191 6811 6.462 6.142 5.847 5.575 5324 5.092 4.876 4 675 4.489 4315 4.153 4.001 3.859 16 11.652 10 338 10.106 9.447 8.851 8.313 7.824 7.379 6974 6,604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4357 4 109 4,033 3.687 12.166 11.274 10.477 9763 9.122 8.544 8022 7.549 7 120 6729 6373 6.047 5.749 5.475 5.222 4 990 4.775 4.576 4 391 4.219 4059 3910 10 12.659 11.690 10828 10.050 9.372 8.756 3.201 7.702 7.250 6.840 6.467 6,128 5.810 5 534 5.2735033 48124608 4419 4.243 4080 3.928 10 13.134 12.005 11.158 10.336 9.604 8.950 8.365 7839 2.366 6,938 6.550 6.198 5877 5.584 5.316 5070 4.843 4 635 4442 4.263 4.097 3.942 20 12.590 12.462 11.470 10.5949.818 9.129 8.514 7.963 7469 7025 6,623 6.259 5 929 5.628 5.353 5.101 4.870 4657 4.460 4.299 4.110 3.954 21 14.029 12821 11.764 10.836 10.017 9.292 8.649 8.075 7562 7.102 6.687 6312 5.973 5.665 5384 5.127 4,891 4675 4476 4 292 4.121 3.963 22 14.451 12.163 12.042 11.061 10 201 9.442 8.772 8.176 7645 7.170 6.743 6.359 6011'5.696 5.410 5.149 4.909 4690 4.488 4.302 4.130 3.970 23 14.857 13.489 12.303 11.272 10.371 9.580 8.83 8 266 7718 7230 6.792 6,399 6044 5.723 5432 5.167 4.925 4 703 4.499 4.311 4.137 3.976 24 15242 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7784 7.283 6835 6.434 6.073 5.746 5451 5.182 4.937 4.713 4.507 4318 4.143 3.981 25 15.622 14.094 12.783 11654 10.675 98239.077 8.422 7.843 7.330 6873 6.464 6.097 5.766 5 467 5.195 4.948 4.721 4514 4.323 4.147 3.985 26 15.983 14.375 13.002 11 826 10 810 9.929 9 161 84887896 7.372 6.906 6.491 5.118 5.783 5 480 5 205 4.956 4.728 4.520 4.328 4.151 3.958 27 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 6.935 6,514 6.136 5.798 5.492 5215 4.964 4.734 4.524 4.332 4.154 3990 28 16 663 14.898 12406 12.137 11051 10.116 9.307 8.602 7984 7.441 6.961 6,534 6.152 5810 5.502 5223 4970 4.739 4528 4 335 4.157 3.992 20 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8650 8.022 7.470 6.983 6551 6,166 5.820 5510 5229 4.975 4.743 4.531 4337 4.159 3.994 30 17.292 15.372 13.765 12.409 11.250 10274 9.427 8.694 8.055 7.496 7.003 6.566 6.177 5 829 5.517 5 235 4.979 4.746 4 534 4339 4.160.1995 40 19.793 17.159 15046 13.332 11925 10.757 97798 951 8.244 7.634 7 105 6 642 6.233 5 871 5.548 5.258 4.997 4 760 4 544 4347 4.166 3.999 Multiple Choice $579,623 $92,740 $3,622,644 $2,203,890

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