APPENDIX 1: Present value of R1 Number of 1% 2% 3% 4% 5% 6% Periods 1 0.9901 2 0.9803 0.9804 0.9709 0.9612 0.9426 3 4 5 0.9615 0.9524 0.9434 0.9246 0.9070 0.8900 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 7% 8% 9% 10% 11% 12% 13% 14% 15% 18% 19% 20% 25% 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403 0.8333 0.8000 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7561 0.7432 0.7305 0.7182 0.7062 0.6944 0.6400 0.8163 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.6575 0.6407 0.6244 0.6086 0.5934 0.5787 0.5120 0.7629 0.7350 0.7084 0.6830 0.6587 0.6355 0.6133 0.5921 0.5718 0.5523 0.5337 0.5158 0.4987 0.4823 0.4096 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 0.5194 0.4972 0.4761 0.4561 0.4371 0.4190 0.4019 0.3277 16% 17% 6 7 8 0.9235 0.8535 0.7894 9 10 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.4104 0.3898 0.3704 0.3521 0.3349 0.2621 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.3139 0.2959 0.2791 0.2097 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.3050 0.2848 0.2660 0.2487 0.2326 0.1678 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 0.2843 0.2630 0.2434 0.2255 0.2090 0.1938 0.1342 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2472 0.2267 0.2080 0.1911 0.1756 0.1615 0.1074 11 12 13 14 15 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.2149 0.1954 0.1778 0.1619 0.1476 0.1346 0.0859 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 | 0.3971 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1869 0.1685 0.1520 0.1372 0.1240 0.1122 0.0687 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1625 0.1452 0.1299 0.1163 0.1042 0.0935 0.0550 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1413 0.1252 0.1110 0.0985 0.0876 0.0779 0.0440 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.1079 0.0949 0.0835 0.0736 0.0649 0.0352 16 0.8528 0.7284 0.6232 17 18 19 20 0.5339 0.4581 0.3936 0.3387 0.2919. 0.2519 0.2176 0.1883 0.1631 0.1415. 0.1229 0.1069 0.0930 0.0811 0.0708 0.0618 0.0541 0.0281 0.8444 0.7142 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.0802 0.0693 0.0600 0.0520 0.0451 0.0225 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0808 0.0691 0.0592 0.0508 0.0437 0.0376 0.0180 0.8277 0.6864 0.5703 0.4746 0.3957 0.3305 0.2765 0.2317 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.0596 0.0506 0.0431 0.0367 0.0313 0.0144 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.2584 0.2145 0.1784 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.0514 0.0433 0.0365 0.0308 0.0261 0.0115 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.0245 0.0197 0.0160 0.0129 0.0105 0.0038 0.7419 0.5521 0.4120 0.3083 0.2314 0.1741 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0151 0.0116 0.0090 0.0070 0.0054 0.0042 0.0012 0.6717 0.4529 0.3066 0.2083 0.1420 0.0972 0.0668 0.0460 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0026 0.0019 0.0013 0.0010 0.0007 0.0001 0.0872 0.0543 0.0339 0.0213 0.0134 0.0085 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006 0.0004 0.0003 0.0002 0.0001 0.0535 0.0303 0.0173 0.0099 0.0057 0.0033 0.0019 0.0011 0.0007 0.0004 0.0002 0.0001 0.0001 25 30 40 50 60 0.6080 0.3715 0.2281 0.1407 0.5504 0.3048 0.1697 0.0951 Number APPENDIX 2: Present value of a regular annuity of R1 per period for n periods of 1% 2% 3% 4% 5% 6% 7% 8% 12% 13% 14% Periods 1 0.9901 2 1.9704 3 2.9410 2.8839 2.8286 0.9804 0.9709 0.9615 1.9416 1.9135 1.8861 2.7751 0.9524 0.9434 1.8594 1.8334 2.7232 2.6730 4 3.9020 5 4.8534 3.8077 3.7171 4.7135 4.5797 3.6299 4.4518 3.5460 3.4651 4.3295 4.2124 3.3872 4.1002 0.9346 0.9259 1.8080 1.7833. 2.6243 2.5771 3.3121 3.9927 9% 10% 11% 15% 17% 18% 19% 20% 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403 0.8333 1.7591 1.7355 1.7125 1.6901 1.6681 1.6467 1.6257 1.6052 1.5852 1.5656 1.5465 1.5278 2.5313 2.4869 2.4437 2.4018 2.3612 2.3216 2.2832 2.2459 2.2096 2.1743 2.1399 2.1065 3.2397 3.1699 3.1024 3.0373 2.9745 2.9137 2.8550 2.7982 2.7432 2.6901 2.6386 2.5887 3.8897 3.7908 3.6959 3.6048 3.5172 3.4331 3.3522 3.2743 3.1993 3.1272 3.0576 2.9906 16% 6 5.7955 5.6014 7 6.7282 8 7.6517 9 8.5660 10 7.3255 8.1622 9.4713 8.9826 8.5302 5.4172 6.4720 6.2303 7.0197 7.7861 5.2421 4.9173 6.0021 5.5824 6.7327 6.4632 6.2098 7.4353 7.1078 6.8017 8.1109 7.7217 7.3601 5.0757 5.7864 4.7665 5.3893 5.9713 6.5152 7.0236 4.6229 5.2064 5.7466 6.2469 6.7101 4.4859 4.3553 4.2305 4.1114 3.9975 3.8887 3.7845 3.6847 3.5892 3.4976 3.4098 3.3255 5.0330 4.8684 4.7122 4.5638 4.4226 4.2883 4.1604 4.0386 3.9224 3.8115 3.7057 3.6046 5.5348 5.3349 5.1461 4.9676 4.7988 4.6389 4.4873 4.3436 4.2072 4.0776 3.9544 3.8372 5.9952 5.7590 5.5370 5.3282 5.1317 4.9464 4.7716 4.6065 4.4506 4.3038 4.1633 4.0310 6.4177 6.1446 5.8892 5.6502 5.4262 5.2161 5.0188 4.8332 4.6586 4.4941 4.3389 4.1925 11 10.3676 12 11.2551 13 9.7868 9.2526 10.5753 9.9540 12.1337 11.3484 10.6350 9.9856 14 15 13.0037 12.1062 11.2961 13.8651 12.8493 11.9379 8.7605 8.3064 9.3851 8.8633 9.3936 10.5631 9.8986 11.1184 10.3797 7.8869 7.4987 7.1390 8.3838 7.9427 7.5361 8.8527 8.3577 7.9038 9.2950 8.7455 8.2442 9.7122 9.1079 8.5595 6.8052 6.4951 6.2065 5.9377 5.6869 5.4527 5.2337 5.0286 4.8364 4.6560 4.4865 4.3271 7.1607 6.8137 6.4924 6.1944 5.9176 5.6603 5.4206 5.1971 4.9884 4.7932 4.6105 4.4392 7.4869 7.1034 6.7499 6.4235 6.1218 5.8424 5.5831 5.3423 5.1183 4.9095 4.7147 4.5327 7.7862 7.3667 6.9819 6.6282 6.3025 6.0021 5.7245 5.4675 5.2293 5.0081 4.8023 4.6106 8.0607 7.6061 7.1909 6.8109 6.4624 6.1422 5.8474 5.5755 5.3242 5.0916 4.8759 4.6755 16 17 18 19 20 14.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514 15.5623 14.2919 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216 16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 17.2260 15.6785 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 18.0456 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 8.3126 7.8237 7.3792 6.9740 6.6039 6.2651 5.9542 5.6685 5.4053 5.1624 4.9377 4.7296 8.5436 8.0216 7.5488 7.1196 6.7291 6.3729 6.0472 5.7487 5.4746 5.2223 4.9897 4.7746 8.7556 8.2014 7.7016 7.2497 6.8399 6.4674 6.1280 5.8178 5.5339 5.2732 5.0333 4.8122 8.9501 8.3649 7.8393 7.3658 6.9380 6.5504 6.1982 5.8775 5.5845 5.3162 5.0700 4.8435 9.1285 8.5136 7.9633 7.4694 7.0248 6.6231 6.2593 5.9288 5.6278 5.3527 5.1009 4.8696 25 30 40 50 60 22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.8226 9.0770 | 8.4217 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 10.2737 9.4269 8.6938 32.8347 27.3555 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 9.7791 8.9511 39.1961 31.4236 25.7298 21.4822 18.2559 15.7619 13.8007 12.2335 10.9617 9.9148 9.0417 44.9550 34.7609 27.6756 22.6235 18.9293 16.1614 14.0392 12.3766 11.0480 9.9672 9.0736 7.8431 7.3300 6.8729 6.4641 6.0971 5.7662 5.4669 5.1951 4.9476 8.0552 7.4957 7.0027 6.5660 6.1772 5.8294 5.5168 5.2347 4.9789 8.2438 7.6344 7.1050 6.6418 6.2335 5.8713 5.5482 5.2582 4.9966 8.3045 7.6752 7.1327 6.6605 6.2463 5.8801 5.5541 5.2623 4.9995 8.3240 7.6873 7.1401 6.6651 6.2402 5.8819 5.5553 5.2630 4.9999
APPENDIX 1: Present value of R1 Number of 1% 2% 3% 4% 5% 6% Periods 1 0.9901 2 0.9803 0.9804 0.9709 0.9612 0.9426 3 4 5 0.9615 0.9524 0.9434 0.9246 0.9070 0.8900 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 7% 8% 9% 10% 11% 12% 13% 14% 15% 18% 19% 20% 25% 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403 0.8333 0.8000 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7561 0.7432 0.7305 0.7182 0.7062 0.6944 0.6400 0.8163 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.6575 0.6407 0.6244 0.6086 0.5934 0.5787 0.5120 0.7629 0.7350 0.7084 0.6830 0.6587 0.6355 0.6133 0.5921 0.5718 0.5523 0.5337 0.5158 0.4987 0.4823 0.4096 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 0.5194 0.4972 0.4761 0.4561 0.4371 0.4190 0.4019 0.3277 16% 17% 6 7 8 0.9235 0.8535 0.7894 9 10 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.4104 0.3898 0.3704 0.3521 0.3349 0.2621 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.3139 0.2959 0.2791 0.2097 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.3050 0.2848 0.2660 0.2487 0.2326 0.1678 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 0.2843 0.2630 0.2434 0.2255 0.2090 0.1938 0.1342 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2472 0.2267 0.2080 0.1911 0.1756 0.1615 0.1074 11 12 13 14 15 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.2149 0.1954 0.1778 0.1619 0.1476 0.1346 0.0859 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 | 0.3971 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1869 0.1685 0.1520 0.1372 0.1240 0.1122 0.0687 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1625 0.1452 0.1299 0.1163 0.1042 0.0935 0.0550 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1413 0.1252 0.1110 0.0985 0.0876 0.0779 0.0440 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.1079 0.0949 0.0835 0.0736 0.0649 0.0352 16 0.8528 0.7284 0.6232 17 18 19 20 0.5339 0.4581 0.3936 0.3387 0.2919. 0.2519 0.2176 0.1883 0.1631 0.1415. 0.1229 0.1069 0.0930 0.0811 0.0708 0.0618 0.0541 0.0281 0.8444 0.7142 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.0802 0.0693 0.0600 0.0520 0.0451 0.0225 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0808 0.0691 0.0592 0.0508 0.0437 0.0376 0.0180 0.8277 0.6864 0.5703 0.4746 0.3957 0.3305 0.2765 0.2317 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.0596 0.0506 0.0431 0.0367 0.0313 0.0144 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.2584 0.2145 0.1784 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.0514 0.0433 0.0365 0.0308 0.0261 0.0115 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.0245 0.0197 0.0160 0.0129 0.0105 0.0038 0.7419 0.5521 0.4120 0.3083 0.2314 0.1741 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0151 0.0116 0.0090 0.0070 0.0054 0.0042 0.0012 0.6717 0.4529 0.3066 0.2083 0.1420 0.0972 0.0668 0.0460 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0026 0.0019 0.0013 0.0010 0.0007 0.0001 0.0872 0.0543 0.0339 0.0213 0.0134 0.0085 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006 0.0004 0.0003 0.0002 0.0001 0.0535 0.0303 0.0173 0.0099 0.0057 0.0033 0.0019 0.0011 0.0007 0.0004 0.0002 0.0001 0.0001 25 30 40 50 60 0.6080 0.3715 0.2281 0.1407 0.5504 0.3048 0.1697 0.0951 Number APPENDIX 2: Present value of a regular annuity of R1 per period for n periods of 1% 2% 3% 4% 5% 6% 7% 8% 12% 13% 14% Periods 1 0.9901 2 1.9704 3 2.9410 2.8839 2.8286 0.9804 0.9709 0.9615 1.9416 1.9135 1.8861 2.7751 0.9524 0.9434 1.8594 1.8334 2.7232 2.6730 4 3.9020 5 4.8534 3.8077 3.7171 4.7135 4.5797 3.6299 4.4518 3.5460 3.4651 4.3295 4.2124 3.3872 4.1002 0.9346 0.9259 1.8080 1.7833. 2.6243 2.5771 3.3121 3.9927 9% 10% 11% 15% 17% 18% 19% 20% 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403 0.8333 1.7591 1.7355 1.7125 1.6901 1.6681 1.6467 1.6257 1.6052 1.5852 1.5656 1.5465 1.5278 2.5313 2.4869 2.4437 2.4018 2.3612 2.3216 2.2832 2.2459 2.2096 2.1743 2.1399 2.1065 3.2397 3.1699 3.1024 3.0373 2.9745 2.9137 2.8550 2.7982 2.7432 2.6901 2.6386 2.5887 3.8897 3.7908 3.6959 3.6048 3.5172 3.4331 3.3522 3.2743 3.1993 3.1272 3.0576 2.9906 16% 6 5.7955 5.6014 7 6.7282 8 7.6517 9 8.5660 10 7.3255 8.1622 9.4713 8.9826 8.5302 5.4172 6.4720 6.2303 7.0197 7.7861 5.2421 4.9173 6.0021 5.5824 6.7327 6.4632 6.2098 7.4353 7.1078 6.8017 8.1109 7.7217 7.3601 5.0757 5.7864 4.7665 5.3893 5.9713 6.5152 7.0236 4.6229 5.2064 5.7466 6.2469 6.7101 4.4859 4.3553 4.2305 4.1114 3.9975 3.8887 3.7845 3.6847 3.5892 3.4976 3.4098 3.3255 5.0330 4.8684 4.7122 4.5638 4.4226 4.2883 4.1604 4.0386 3.9224 3.8115 3.7057 3.6046 5.5348 5.3349 5.1461 4.9676 4.7988 4.6389 4.4873 4.3436 4.2072 4.0776 3.9544 3.8372 5.9952 5.7590 5.5370 5.3282 5.1317 4.9464 4.7716 4.6065 4.4506 4.3038 4.1633 4.0310 6.4177 6.1446 5.8892 5.6502 5.4262 5.2161 5.0188 4.8332 4.6586 4.4941 4.3389 4.1925 11 10.3676 12 11.2551 13 9.7868 9.2526 10.5753 9.9540 12.1337 11.3484 10.6350 9.9856 14 15 13.0037 12.1062 11.2961 13.8651 12.8493 11.9379 8.7605 8.3064 9.3851 8.8633 9.3936 10.5631 9.8986 11.1184 10.3797 7.8869 7.4987 7.1390 8.3838 7.9427 7.5361 8.8527 8.3577 7.9038 9.2950 8.7455 8.2442 9.7122 9.1079 8.5595 6.8052 6.4951 6.2065 5.9377 5.6869 5.4527 5.2337 5.0286 4.8364 4.6560 4.4865 4.3271 7.1607 6.8137 6.4924 6.1944 5.9176 5.6603 5.4206 5.1971 4.9884 4.7932 4.6105 4.4392 7.4869 7.1034 6.7499 6.4235 6.1218 5.8424 5.5831 5.3423 5.1183 4.9095 4.7147 4.5327 7.7862 7.3667 6.9819 6.6282 6.3025 6.0021 5.7245 5.4675 5.2293 5.0081 4.8023 4.6106 8.0607 7.6061 7.1909 6.8109 6.4624 6.1422 5.8474 5.5755 5.3242 5.0916 4.8759 4.6755 16 17 18 19 20 14.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514 15.5623 14.2919 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216 16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719 17.2260 15.6785 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 18.0456 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 8.3126 7.8237 7.3792 6.9740 6.6039 6.2651 5.9542 5.6685 5.4053 5.1624 4.9377 4.7296 8.5436 8.0216 7.5488 7.1196 6.7291 6.3729 6.0472 5.7487 5.4746 5.2223 4.9897 4.7746 8.7556 8.2014 7.7016 7.2497 6.8399 6.4674 6.1280 5.8178 5.5339 5.2732 5.0333 4.8122 8.9501 8.3649 7.8393 7.3658 6.9380 6.5504 6.1982 5.8775 5.5845 5.3162 5.0700 4.8435 9.1285 8.5136 7.9633 7.4694 7.0248 6.6231 6.2593 5.9288 5.6278 5.3527 5.1009 4.8696 25 30 40 50 60 22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.8226 9.0770 | 8.4217 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 10.2737 9.4269 8.6938 32.8347 27.3555 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 9.7791 8.9511 39.1961 31.4236 25.7298 21.4822 18.2559 15.7619 13.8007 12.2335 10.9617 9.9148 9.0417 44.9550 34.7609 27.6756 22.6235 18.9293 16.1614 14.0392 12.3766 11.0480 9.9672 9.0736 7.8431 7.3300 6.8729 6.4641 6.0971 5.7662 5.4669 5.1951 4.9476 8.0552 7.4957 7.0027 6.5660 6.1772 5.8294 5.5168 5.2347 4.9789 8.2438 7.6344 7.1050 6.6418 6.2335 5.8713 5.5482 5.2582 4.9966 8.3045 7.6752 7.1327 6.6605 6.2463 5.8801 5.5541 5.2623 4.9995 8.3240 7.6873 7.1401 6.6651 6.2402 5.8819 5.5553 5.2630 4.9999
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
MAGIC ELECTRONICS LTD: PROJECTIONS FOR 2024 AND 2025
After posting excellent sales and net profit in the previous year Magic Electronics Ltd set its sights on growth and innovation as it celebrated its 10th anniversary in 2023. It has continually strived to become the leader in the electronics industry. The company is also committed to being a good corporate citizen, as it strives to fulfil both its economic and social responsibilities.
The following reflects the financial position of the company on 31 December 2023:
The carrying value of the fixed assets was R30 000 000 whilst the current assets comprised inventory of R9 400 000, accounts receivable of R8 000 000 and cash of R1 600 000. The equity consisted of ordinary share capital, R17 000 000, and retained earnings of R6 400 000. An amount of R22 000 000 was owed to Ambi Bank for a long-term loan. Trade creditors were owed R3 600 000.
The following projections and proposals were made by Magic Electronics Ltd for 2024:
The sales are expected to increase from R30 000 000 in 2023 to R40 000 000 in 2024. All the sales are on credit. Accounts receivable is based on a collection period of 36.5 days. Accounts payable must be calculated using the percentage-of-sales method. The gross margin and net profit margin ratios are expected to be 25% and 10% respectively for 2024. All purchases of inventory are on credit. Purchases for 2024 are projected at R25 000 000. The company expects to show a net increase in cash of R500 000 during 2024. R24 000 000 will be spent on additional land and buildings during the fourth quarter of 2024. The total depreciation for 2024 is forecasted at R4 000 000. 1 000 000 ordinary shares are expected to be sold at R4 each during January 2024. Dividends of R3 000 000 are expected to be recommended by the directors at the end of 2024. These dividends will be paid during 2025. R5 500 000 will be paid to Ambi Bank during 2024. This amount includes R2 000 000 for interest on loan. The amount of external funding (non-current debt) required must be calculated.
Magic Electronics Ltd has identified a new machine that it is considering for purchase at the start of 2025. The cost the machine is R4 000 000. The machine is expected to have a useful life of five years. No scrap value is anticipated. The annual profits that are expected to be generated from the machine are as follows:
Year 1 R600 000; Year 2 R620 000; Year 3 R700 000; Year 4 R660 000; Year 5 R560 000.
The cost of capital is 15%. Depreciation is estimated at R800 000 per year.
- Prepare the Pro Forma
Statement of Financial Position as at 31 December 2024. (Ignore the investment opportunity for 2025.) - Refer to the investment opportunity for 2025 (the purchase of a new machine) and calculate the following. Ignore taxes. Use only the four-decimals present value tables
- Accounting Rate of Return on average investment (expressed to two decimal places).
- Net Present Value. Your answer must reflect the calculations of the present values and NPV.
- Internal Rate of Return (expressed to two decimal places) if the net cash flows are R1 200 000 per year for five years. Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation.
Transcribed Image Text:APPENDIX 1: Present value of R1
Number
of
1%
2%
3%
4%
5%
6%
Periods
1
0.9901
2
0.9803
0.9804 0.9709
0.9612 0.9426
3
4
5
0.9615 0.9524 0.9434
0.9246 0.9070 0.8900
0.9706 0.9423 0.9151 0.8890 0.8638 0.8396
0.9610 0.9238 0.8885 0.8548 0.8227 0.7921
0.9515 0.9057 0.8626 0.8219 0.7835 0.7473
7% 8% 9% 10% 11% 12% 13% 14% 15%
18% 19% 20%
25%
0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403 0.8333 0.8000
0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7561 0.7432 0.7305 0.7182 0.7062 0.6944 0.6400
0.8163 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.6575 0.6407 0.6244 0.6086 0.5934 0.5787 0.5120
0.7629 0.7350 0.7084 0.6830 0.6587 0.6355 0.6133 0.5921 0.5718 0.5523 0.5337 0.5158 0.4987 0.4823 0.4096
0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 0.5194 0.4972 0.4761 0.4561 0.4371 0.4190 0.4019 0.3277
16%
17%
6
7
8
0.9235 0.8535 0.7894
9
10
0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.4104 0.3898 0.3704 0.3521 0.3349 0.2621
0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.3538 0.3332 0.3139 0.2959 0.2791 0.2097
0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.3050 0.2848 0.2660 0.2487 0.2326 0.1678
0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606 0.3329 0.3075 0.2843 0.2630 0.2434 0.2255 0.2090 0.1938 0.1342
0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2472 0.2267 0.2080 0.1911 0.1756 0.1615 0.1074
11
12
13
14
15
0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2607 0.2366 0.2149 0.1954 0.1778 0.1619 0.1476 0.1346 0.0859
0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 0.4440 | 0.3971 0.3555 0.3186 0.2858 0.2567 0.2307 0.2076 0.1869 0.1685 0.1520 0.1372 0.1240 0.1122 0.0687
0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2575 0.2292 0.2042 0.1821 0.1625 0.1452 0.1299 0.1163 0.1042 0.0935 0.0550
0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1413 0.1252 0.1110 0.0985 0.0876 0.0779 0.0440
0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.1079 0.0949 0.0835 0.0736 0.0649 0.0352
16
0.8528 0.7284 0.6232
17
18
19
20
0.5339 0.4581 0.3936 0.3387 0.2919. 0.2519 0.2176 0.1883 0.1631 0.1415. 0.1229 0.1069 0.0930 0.0811 0.0708 0.0618 0.0541 0.0281
0.8444 0.7142 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.0802 0.0693 0.0600 0.0520 0.0451 0.0225
0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0808 0.0691 0.0592 0.0508 0.0437 0.0376 0.0180
0.8277 0.6864 0.5703 0.4746 0.3957 0.3305 0.2765 0.2317 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.0596 0.0506 0.0431 0.0367 0.0313 0.0144
0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.2584 0.2145 0.1784 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.0514 0.0433 0.0365 0.0308 0.0261 0.0115
0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1842 0.1460 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.0245 0.0197 0.0160 0.0129 0.0105 0.0038
0.7419 0.5521 0.4120 0.3083 0.2314 0.1741 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0151 0.0116 0.0090 0.0070 0.0054 0.0042 0.0012
0.6717 0.4529 0.3066 0.2083 0.1420 0.0972 0.0668 0.0460 0.0318 0.0221 0.0154 0.0107 0.0075 0.0053 0.0037 0.0026 0.0019 0.0013 0.0010 0.0007 0.0001
0.0872 0.0543 0.0339 0.0213 0.0134 0.0085 0.0054 0.0035 0.0022 0.0014 0.0009 0.0006 0.0004 0.0003 0.0002 0.0001
0.0535 0.0303 0.0173 0.0099 0.0057 0.0033 0.0019 0.0011 0.0007 0.0004 0.0002 0.0001 0.0001
25
30
40
50
60
0.6080 0.3715 0.2281 0.1407
0.5504 0.3048 0.1697 0.0951
Transcribed Image Text:Number
APPENDIX 2: Present value of a regular annuity of R1 per period for n periods
of
1%
2%
3%
4%
5%
6%
7%
8%
12%
13%
14%
Periods
1
0.9901
2
1.9704
3
2.9410
2.8839 2.8286
0.9804 0.9709 0.9615
1.9416 1.9135 1.8861
2.7751
0.9524 0.9434
1.8594 1.8334
2.7232 2.6730
4
3.9020
5
4.8534
3.8077 3.7171
4.7135 4.5797
3.6299
4.4518
3.5460 3.4651
4.3295 4.2124
3.3872
4.1002
0.9346 0.9259
1.8080 1.7833.
2.6243 2.5771
3.3121
3.9927
9% 10% 11%
15%
17% 18% 19% 20%
0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8696 0.8621 0.8547 0.8475 0.8403 0.8333
1.7591 1.7355 1.7125 1.6901 1.6681 1.6467 1.6257 1.6052 1.5852 1.5656 1.5465 1.5278
2.5313 2.4869 2.4437 2.4018 2.3612 2.3216 2.2832 2.2459 2.2096 2.1743 2.1399 2.1065
3.2397 3.1699 3.1024 3.0373 2.9745 2.9137 2.8550 2.7982 2.7432 2.6901 2.6386 2.5887
3.8897 3.7908 3.6959 3.6048 3.5172 3.4331 3.3522 3.2743 3.1993 3.1272 3.0576 2.9906
16%
6
5.7955
5.6014
7
6.7282
8
7.6517
9
8.5660
10
7.3255
8.1622
9.4713 8.9826 8.5302
5.4172
6.4720 6.2303
7.0197
7.7861
5.2421
4.9173
6.0021
5.5824
6.7327 6.4632 6.2098
7.4353 7.1078 6.8017
8.1109 7.7217 7.3601
5.0757
5.7864
4.7665
5.3893
5.9713
6.5152
7.0236
4.6229
5.2064
5.7466
6.2469
6.7101
4.4859 4.3553 4.2305 4.1114 3.9975 3.8887 3.7845 3.6847 3.5892 3.4976 3.4098 3.3255
5.0330 4.8684 4.7122 4.5638 4.4226 4.2883 4.1604 4.0386 3.9224 3.8115 3.7057 3.6046
5.5348 5.3349 5.1461 4.9676 4.7988 4.6389 4.4873 4.3436 4.2072 4.0776 3.9544 3.8372
5.9952 5.7590 5.5370 5.3282 5.1317 4.9464 4.7716 4.6065 4.4506 4.3038 4.1633 4.0310
6.4177 6.1446 5.8892 5.6502 5.4262 5.2161 5.0188 4.8332 4.6586 4.4941 4.3389 4.1925
11
10.3676
12
11.2551
13
9.7868 9.2526
10.5753 9.9540
12.1337 11.3484 10.6350
9.9856
14
15
13.0037 12.1062 11.2961
13.8651 12.8493 11.9379
8.7605 8.3064
9.3851 8.8633
9.3936
10.5631 9.8986
11.1184 10.3797
7.8869 7.4987 7.1390
8.3838 7.9427 7.5361
8.8527 8.3577 7.9038
9.2950 8.7455 8.2442
9.7122 9.1079 8.5595
6.8052 6.4951 6.2065 5.9377 5.6869 5.4527 5.2337 5.0286 4.8364 4.6560 4.4865 4.3271
7.1607 6.8137 6.4924 6.1944 5.9176 5.6603 5.4206 5.1971 4.9884 4.7932 4.6105 4.4392
7.4869 7.1034 6.7499 6.4235 6.1218 5.8424 5.5831 5.3423 5.1183 4.9095 4.7147 4.5327
7.7862 7.3667 6.9819 6.6282 6.3025 6.0021 5.7245 5.4675 5.2293 5.0081 4.8023 4.6106
8.0607 7.6061 7.1909 6.8109 6.4624 6.1422 5.8474 5.5755 5.3242 5.0916 4.8759 4.6755
16
17
18
19
20
14.7179 13.5777 12.5611 11.6523 10.8378 10.1059 9.4466 8.8514
15.5623 14.2919 13.1661 12.1657 11.2741 10.4773 9.7632 9.1216
16.3983 14.9920 13.7535 12.6593 11.6896 10.8276 10.0591 9.3719
17.2260 15.6785 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036
18.0456 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940
9.8181
8.3126 7.8237 7.3792 6.9740 6.6039 6.2651 5.9542 5.6685 5.4053 5.1624 4.9377 4.7296
8.5436 8.0216 7.5488 7.1196 6.7291 6.3729 6.0472 5.7487 5.4746 5.2223 4.9897 4.7746
8.7556 8.2014 7.7016 7.2497 6.8399 6.4674 6.1280 5.8178 5.5339 5.2732 5.0333 4.8122
8.9501 8.3649 7.8393 7.3658 6.9380 6.5504 6.1982 5.8775 5.5845 5.3162 5.0700 4.8435
9.1285 8.5136 7.9633 7.4694 7.0248 6.6231 6.2593 5.9288 5.6278 5.3527 5.1009 4.8696
25
30
40
50
60
22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 11.6536 10.6748 9.8226 9.0770 | 8.4217
25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 12.4090 11.2578 10.2737 9.4269 8.6938
32.8347 27.3555 23.1148 19.7928 17.1591 15.0463 13.3317 11.9246 10.7574 9.7791 8.9511
39.1961 31.4236 25.7298 21.4822 18.2559 15.7619 13.8007 12.2335 10.9617 9.9148 9.0417
44.9550 34.7609 27.6756 22.6235 18.9293 16.1614 14.0392 12.3766 11.0480 9.9672 9.0736
7.8431 7.3300 6.8729 6.4641 6.0971 5.7662 5.4669 5.1951 4.9476
8.0552 7.4957 7.0027 6.5660 6.1772 5.8294 5.5168 5.2347 4.9789
8.2438 7.6344 7.1050 6.6418 6.2335 5.8713 5.5482 5.2582 4.9966
8.3045 7.6752 7.1327 6.6605 6.2463 5.8801 5.5541 5.2623 4.9995
8.3240
7.6873 7.1401 6.6651 6.2402 5.8819 5.5553 5.2630 4.9999
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