y v E21-24 (similar to) Question Help Jefferson Labs, a taxpaying entity, estimates that it can save $29.000 a year in cash operating costs for the next years if it buys a special purpose eye testing machine at a cost of $115.000.NO terminal disposal value is expected. Jefferson Labs' required rate of return in 125 Assume all cash flows occur at year and except for intial investment amounts Jefferson Labs ses straight depreciation. The income tax rate is 38% for all transactions that affect income taxes Presente of 81 table Plato Anty of the Future Value of 5.1 Future Value of nuty of 51 table Read the requirements Requirement 1. Calculate the following for the special purpose eye-touting machine a. Not present value (NPR) (Round interim calculations and your final answers to the nearest whole dollar Use a minus sign or parentheses for a negative net present value The not present value is Reference Present Value of $1 Penods 2% 4% 6% 8% 10% Period 1 0.980092 0943 0.926 0.909 Period 2 0.961 0.925 0.890 0.857 0.820 Period 3 0.942 0.889 0.840 0.794 0.751 Period 4 0.924 0.855 0.792 0.735 0.683 Periods 0.006 0.822 0.747 0.681 0621 Period 6 0.888 0.790 0.705 0.630 0564 Period 70 871 0.760 0.665 0.583 0513 Period 8 0.853 0.731 0.627 0.540 0.407 Period 90.837 0.703 0.592 0.500 0.424 Period 10 0.020 0.670 0.550 0.463 0.386 Period 11 0.004 0.650 0.527 0.429 0350 Period 12 0.788 0.625 0.497 0397 0.319 Period 13 0.773 0.601 0489 0.368 0 290 Period 14 0.758 0.577 0.442 0.340 0.263 Period 15 0.743 0.555 0.417 0.315 0.239 Period 16 0.728 0.534 0.394 0.292 0.218 Period 17 0.714 0.513 0.371 0270 0.198 Period 18 0.700 0.494 0.350 0.250 0.180 Period 19 0.686 0.475 0331 0232 0.104 Period 20 0.673 0456 0.312 0215 0 149 Period 21 0.660 0.439 0.294 0.190 0.135 Period 220.647 0422 0.272 0.184 0.123 12% 14% 0.893 0.877 0.797 0.769 0.712 0.675 0.636 0.592 0.567 0.519 0507 0.456 0.452 0.400 0.404 0351 0.361 0.306 0.322 0.270 0287 0.237 0257 0.208 0220 0.182 0205 0.160 0.183 0.140 0.163 0.123 0.146 0.100 0.130 0.005 0.116 0.083 0.104 0.073 0.003 0.064 0.083 0.056 16% 0.862 0.743 0.641 0.552 0.476 0410 0.354 0 305 0263 0.227 0.195 0.168 0.145 0.125 0.100 0 093 0.080 0.069 0.060 0.051 0.044 0.038 18% 20% 0.847 0833 0.718 0.694 0.609 0.579 0.516 0.482 0.437 0.402 0.370 0.335 0.314 0.279 0.266 0.233 0.225 0.194 0.191 0.162 0.162 0.135 0.137 0.112 0.116 0.093 0.099 0.078 0.084 0.065 0071 0.054 0.060 0.045 0.051 0038 0.043 0031 0 037 0.026 0.031 0.022 0.026 0.018 22% 0.620 0.672 0551 0.451 0.370 0303 0.249 0.204 0.167 0.137 0.112 0.092 0.075 0062 0.051 0.042 0034 0.028 0.023 0.019 0.015 0.013 24% 20% 28% 30% 32% 40% Periods 0.800 0.794 0.781 0.769 0.758 0.714 Period 1 0.650 0.630 0.610 0.592 0.574 0.510 Period 2 0.524 0.500 0.477 0.455 0.435 0.364 Period 3 0.423 0.397 0.373 0.350 0.329 0.250 Period 4 0.341 0315 0.291 0.269 0.250 0.136 Period 5 0.275 0.250 0.227 0207 0.180 0.133 Period 0.222 0.198 0.178 0.159 0.143 0 095 Period 7 0.179 0.157 0.139 0.123 0 100 0.068 Period 8 0.144 0.125 0.105 0.094 0.082 0.048 Period 9 0.116 0.099 0085 0.073 0.062 0,035 Period 10 0.094 0.079 0.066 0.056 0.047 0025 Period 11 0.076 0062 0.052 0043 0.036 0.018 Period 12 0061 0.050 0040 0.030 0.027 0013 Period 13 0.049 0.039 0.032 0.025 0.021 0.009 Period 14 0031 0025 0.020 0.018 0.006 Period 15 0032 003 0.019 0.015 0.012 0.005 Period 16 0.025 0 020 0.015 01012 0.009 0.003 Period 17 0.021 0.016 0.012 0.000 0.007 0.002 Period 18 0.017 0.012 0009 0007 0.005 0.002 Period 19 0.014 0.010 0.007 0.005 0.004 0.001 Period 20 0011 0.008 0.000 0.004 0.003 0.001 Period 21 0.009 0.006 0.0040.003 0.002 0.001 Period 22 0.040 Print Done X Reference 14% 0.877 1.547 2.322 2914 3.433 3.889 4288 ed N Present Value of Annuity of $1.00 in Arrears! Periods 2% 6% 85 10% Period 1 0.950 0.962 0.943 0.926 0.909 Period 2 1942 1886 1.833 1.783 1.736 Period 3 2 884 2.775 2673 2.577 2.487 Period 4 3.808 3.630 3.485 3.312 3.170 Period 5 4713 4452 4.212 3.993 3.791 Period 6 5601 5242 4.917 4.623 4355 Period 78.472 6 002 5.582 5.206 4 868 Period 8 7325 6.733 6.210 5.747 5.335 Period 9 3.162 7,435 6.802 6.247 5.750 Period 10 8.983 8.111 7.360 6.710 6.145 Period 11 9,787 8.780 7887 7.139 6.495 Period 12 10 575 9,385 8.384 7.536 6814 Period 13 11.348 9.960 8.853 7.904 7.103 Period 14 12.106 10.563 9.295 8 244 7367 Period 15 12.849 11.118 9.712 8.559 7.606 Period 16 13.578 11.652 10.106 8.851 7.824 Period 17 14.292 12.166 10.477 9.122 8.022 Period 18 14.992 12.659 10.828 9.372 8201 Period 19 16.678 13.134 11.158 9.604 8.365 Period 20 16 351 13.590 11.470 9.818 8.514 Period 21 17.011 14.029 11.764 10.017 8649 Period 22 17 658 14 45112042 10.2010.772 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5650 5338 6.194 6.424 6.628 6.811 6.974 7 120 7250 7360 7469 7.562 7645 4.946 5.216 5.453 5.660 5.842 6.002 6.142 6.265 8.373 6.467 6.550 6.623 6.687 6.743 16% 0.862 1.605 2240 2793 3274 3.685 4039 4.344 4.607 4.833 5.029 5.197 5.342 5.468 5575 5.668 5.749 5.818 5 877 5.929 5.973 6011 18% 0.847 1.500 2.174 2690 3.127 3.490 3.812 4,076 4303 4.4944 4.656 4.790 4 910 5.000 5.092 5.182 5222 5.273 5.316 5.353 5.334 5.410 20% 0.833 1.5228 2.100 2.589 2 991 3326 3.605 3.837 4.031 4.192 4.327 4.439 4.633 4611 4.675 4.730 4.775 4.812 4,843 4.870 4.891 4.900 22% 0.820 1.492 2042 2494 2.864 3.167 3.416 3.619 3.785 3.923 4.035 4.127 4 203 4265 4 315 4357 4 391 4.419 4 442 4 460 4.476 4.48 24% 0.808 1457 1.981 2 404 2.745 3.020 3242 3421 3.560 3.682 3.776 3.851 3.912 3.962 4001 4.033 4059 4080 4,097 4.110 4.121 4.130 26% 0.794 1.424 1.923 2320 2.635 2883 3.083 3.241 3.366 3.465 3,543 3.600 3.656 3.695 3.726 3.751 3.771 3.788 3.799 J.B08 28% 0.781 1392 1.863 2241 2532 2.750 2937 3.076 3.184 3269 3335 3387 3427 3.459 3.43 3.503 3.518 3529 3.539 3.546 3551 3.556 30% 32% 40% Periods 01709 0.766 0.714 Period 1 1361 1.331 1224 Period 2 1.816 1.766 158) Period 3 2.166 2016 1.849 Period 4 2436 2.345 2.035 Periods 2643 2.534 2.168 Periodo 2802 2677 2.263 Period 7 2.925 2786 2331 Period 3,019 2868 2379 Period 9 3092 2.930 2.414 Period 10 3.147 2.978 2438 Period 11 3.190 3.013 2.456 Period 12 3.223 3.040 2.469 Period 13 3.249 3.06 2.478 Period 14 3.268 3.076 2414 Period 15 3.283 3.088 2489 Period 10 3.295 3.007 2492 Period 17 3304 3.104 2494 Period 18 3.311 3.109 2.496 Period 19 3310 3.113 2.497 Pariod 20 3110 2.499 Period 21 3.323 3118 2498 Period 22 3.816 3320 3822 Print Done Reference Compound Amount of $1.00 (The Future Value of $1.00) Periods 2% 4% 6% 8% 10% 12% 14% Period 1 1.020 1.040 1.050 1.080 1.100 1.120 1.140 Period 2 1.040 1.082 1.124 1.166 1.210 1.254 1.300 Period 3 1061 1.125 1.191 1.260 1.331 1.405 1.482 Period 4 1.052 1.170 1.262 1.360 1.484 1.574 1.689 Period 5 1.104 1.217 1.338 1.469 1.611 1.762 1.925 Period 6 1.126 1.265 1.419 1587 1.772 1.974 2.196 Period 7 1.149 1.316 1.504 1.714 1.949 2.211 2.502 Period 8 1.172 1.369 1.594 1.851 2.144 2.476 2.853 Period 9 1 195 1423 1.689 1.999 2.358 2.773 3.252 Period 10 1 219 1480 1.791 2.159 2594 3.106 3.707 Period 11 1.243 1.539 1.898 2.332 2.853 3.479 4.226 Period 12 1.268 1.601 2012 2.518 3.138 3.896 4,818 Period 13 1.294 1.665 2.133 2.720 3.452 4.363 5.492 Period 14 1.319 1.732 2 261 2937 3.797 4887 6 261 Period 15 1.346 1.801 2.397 3.172 4.177 5.474 7.138 Period 16 1.373 1.373 2.540 3426 4.595 6.130 8.137 Period 17 1.400 1.948 2.693 3.700 5.054 6.866 9.276 Period 18 1.428 2.026 2.854 3.996 5.500 7690 10.575 Period 19 1.457 2107 3.026 4.316 6.116 8.613 12.056 Period 20 1.485 2.191 3.207 4.661 6.727 9.646 13.743 Period 21 1516 2270 3.400 5,034 7.400 10.804 15 668 Period 22 1.545 2370 3.604 5.437 8.140 12.100 12 861 16% 18% 1.160 1.180 1.346 1.392 1,561 1.843 1 811 1939 2.100 2.288 2.436 2.700 2826 3.185 3.278 3.759 3.803 4.435 4.411 5.234 5.117 6.176 5.336 7.288 6.886 8.599 7.988 10.147 9.266 11.974 10.748 14.129 12.408 16.672 14,463 19.673 16.777 23,214 19.461 27.393 22 574 32.324 26.186 38.142 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 18.488 22.186 26.623 31.948 38 338 46 005 55 206 22% 1.220 1.488 1.816 2.215 2.703 3.297 4.023 4.908 5.987 7.305 8.912 10 872 13.254 16.182 19.742 24.086 29.334 35 849 43.736 53.358 65 098 79.418 24% 1.240 1.538 1 907 2364 2932 3.835 4.500 5.590 6,931 8.594 10.657 13.215 16.386 20 319 25.196 31.243 38.741 48.039 59.568 73 864 91.592 113574 26% 1.260 1.588 2.000 2520 3.176 4,002 5,042 6.353 8.005 10.086 12.708 16.012 20.175 25 421 32.030 40.358 50.851 64 072 80.731 101.721 128.169 161.492 28% 1.280 1.638 2097 2684 3.436 4.398 5.629 7206 9.223 11.806 15.112 19.343 24.759 31.691 40565 51.923 68.461 85.071 108890 139.380 178.406 228.360 30% 1.300 1.690 2.197 2.856 3.713 4827 8.275 a. 157 10.504 13 786 17.922 23 298 30 288 39.374 51.186 66.542 86.504 112455 146.192 190.050 247 085 321.184 32% 1320 1.742 2 300 3.036 4007 5.290 6.983 9.217 12 166 16.060 21.199 27.983 36.937 48.757 64 359 84.954 112139 148 024 195 391 257 916 340.449 449,393 5 1 2 3 5 7 10 14 20 28 40 56 79 111 15: 213 304 426 591 B 117 163 Ter Print Done Reference Compound Amount of Annuity of $1.00 in Arrears (Future Value of Annuity) Periods 29% 4% 8% 10% 12% 14% 16% 18% 20% Period 1 1000 1000 1000 1000 1000 1.000 1.000 1.000 1.000 1.000 Period 22.020 2040 2060 2080 2.100 213 2.160 2.180 2200 Period 3 3,060 3.122 3.184 3246 3310 3.374 3.440 3.506 3.572 3.640 Period 4 4.122 4.246 4.375 4.506 4641 4.779 4.921 5.066 5215 5.368 Period 5 5.204 5.416 6,637 5.867 6.105 6.353 6.610 8.877 7.154 7.442 Period 6 6.308 6.633 6.975 7336 7716 8.515 8.536 8.977 9.442 9.930 Period 7 7434 7.898 8.394 8.923 9.487 10.089 10.730 11414 12.142 12916 Period 8 8.583 0 214 9.897 10.637 11.436 12300 13.233 14 240 15 327 16 499 Period 9 9.755 10.583 15.491 12.488 13.579 14.776 16.085 17519 19086 20.799 Period 10 10.950 12 006 13.181 14 487 15.937 17 549 19 337 21 321 23.521 25.959 Period 11 12.169 13.486 14.972 16,645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12 13.412 15.026 16.870 18 977 21.384 24 133 27.271 30850 34931 39 581 Period 13 14.680 16.627 18.882 21 495 24.523 28.029 32 08936.786 42219 48 497 Period 14 15 974 18 292 21.015 24 215 27.975 32.393 37.581 43.672 50.818 59.196 Period 15 17 293 20.024 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 Period 16 18.639 21.825 25 673 30.324 35 950 42.753 50.980 60 925 72939 87.442 Period 17 20.012 23.698 28.213 33.750 40 545 48.884 59.118 71 673 87 068 105.931 Period 18 21 412 25.645 30 906 37.450 45,599 55.750 68.39484.141 103.740 128.117 Period 19 22.841 27.671 33.760 41.446 51.159 63.440 78.909 98 603 123.414 154.740 Period 20 24 297 29.778 36.786 45.762 67 275 72.052 91 025 115,380 146.628 186.688 Period 21 25.783 31.969 39.993 50423 64.002 81.699 104.758 134.841 174.021 225 026 Period 22 27299 34 248 43.392.55 457 71403 92.503 120.436 157415 206 345 271031 22% 1.000 2220 3.709 5524 7740 10.442 13.740 17.762 22670 28.657 3592 44 874 55.746 69 010 85.192 104.935 129.020 158.405 194254 237.989 291347 24% 1.000 2 240 3.778 5,684 3.048 10 980 14615 19.123 24712 31.543 10.233 50 895 64.110 80.496 100 815 126.011 157 253 195.994 244003 303,601 327.465 469.056 26% 1.000 2.260 3.848 5.848 5368 11544 15 546 20 585 26 940 34 945 45031 67739 73751 83826 119.347 151377 191.735 242 585 306,658 387 39 48 110 617 278 28% 1.000 2280 3918 6016 8.700 12.136 10.534 22.163 29 369 38.593 50398 65.510 84 853 109.612 141303 181 86 233791 300 252 385323 494213 633 593 811.999 30% 1000 2.300 3.990 6.187 9043 12.750 17583 23.850 32015 42619 56.405 74327 97625 127.913 167280 218.472 285014 371 518 483 973 690.165 820 215 1067280 32% 1.000 2320 4062 6.362 9.30 13.406 16.090 25 670 34 895 47 062 63 122 84 320 112 303 140.240 197.097 262356 347 309 459.449 407,412 802.863 1060 779 1401 229 1 TENT Print Doce C NUVVUNI 21 Save 1 of 5 (1 complete) HW Score: 1.54%, 0.69 of 45 pts Question Help hat it can save $29,000 a year in cash operating costs for the next 8 years if it buys a special purpose eye-testing machine at a cost of $115,000. No Labs' required rate of return is 12%. Assume all cash flows occur at year-end except for initial investment amounts. Jefferson Labs uses straight-ine all transactions that affect income taxes. Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table e special-purpose eye-testing machine: Requirements X present value.) c. 1. Calculate the following for the special-purpose eye-testing machine Net present value b. Payback period Internal rate of return d. Accrual accounting rate of return based on net initial investment Accrual accounting rate of return based on average investment 2. How would your computations in requirement 1 be affected if the special purpose machine had a $14,000 terminal disposal value at the end of 8 years? Assume depreciation deductions are based on the $115.000 purchase cost and zero terminal disposal value using the straight-line method. Answer briefly in words without further calculations. e Print Done Chris Score: 0.69 of 9 pts 1 of 5 (1 complete HW Score: 1.54%, 0.69 of 5 pts E21-24 (similar to) Question Jetterson Labs, a taxpaying entity estimates that can save $29,000 a year in cash operating costs for the next years if it buys a special-purpose eye-testing machine at a cost of $115.000. No mal disposal value is expected. Jefferson Labs' required rate of return is 12%. Assume all cash flows occur a year-end except for initial investment amounts. Jefferson Labs is straight Hepreciation. The income tax rate is 38% for all transactions that affect income taxes Present Value of $1 table Present Value of Anruilof S1 table Future Value of 51 table Future Value of Annuity of $1 table Read the requirements Requirement 1. Calculate the following for the special purpose eye-testing machine . Net present value (NPR) (Round interim * Requirements The not present value is presente 1. Calculate the following for the special purpose eye-lasting machine Net present value Payback period c Internal rate of return d. Accrual accounting rate of totum based on net initial investment Acorul accounting rate of return based on average Investment 2. How would your computation in requirement be affected the special purpose machine had a $14.000 terminal disposal value at the end of years? Assume depreciation deductions are based on the $115.000 purchase cost and zero terminal disposal value using the straight line method. Answer briefly in words without further calculation Enter any number in the edit fields and the Print Done 8 Air remaining Check Ant OGG BU 5 6 9 E R T U co 1 * Requirements a. C. 1. Calculate the following for ihe special-purpose eye-testing machine: Net present value b. Payback period Internal rate of return d. Accrual accounting rate of return based on net initial investment e. Accrual accounting rate of return based on average investment 2. How would your computations in requirement 1 be affected if the special-purpose machine had a $14,000 terminal disposal value at the end of 8 years? Assume depreciation deductions are based on the $115,000 purchase cost and zero terminal disposal value using the straight-line method. Answer briefly in words without further calculations. Print Done