Homework Help is Here – Start Your Trial Now!
Business
Finance
Techno Lab, a taxpaying​ entity, estimates that it can save $30,000 a year in cash operating costs for the next 10 years if it buys a​ special-purpose eye-testing machine at a cost of $135,000. No terminal disposal value is expected.   Techno Labs' required rate of return is 10​%. Assume all cash flows occur at​ year-end except for initial investment amounts. Techno Labs uses​ straight-line depreciation. The income tax rate is 34% for all transactions that affect income taxes. . Requirement 1. Calculate the following for the​ special-purpose eye-testing​ machine: Net 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.)   1. Calculate the following for the​ special-purpose eye-testing​ machine:   a. Net present value   b. Payback period   c. 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 $14,000terminal disposal value at the end of 10 ​years? Assume depreciation deductions are based on the$135,000 purchase cost and zero terminal disposal value using the​ straight-line method. Answer briefly in words without further calculations

Techno Lab, a taxpaying​ entity, estimates that it can save $30,000 a year in cash operating costs for the next 10 years if it buys a​ special-purpose eye-testing machine at a cost of $135,000. No terminal disposal value is expected.   Techno Labs' required rate of return is 10​%. Assume all cash flows occur at​ year-end except for initial investment amounts. Techno Labs uses​ straight-line depreciation. The income tax rate is 34% for all transactions that affect income taxes. . Requirement 1. Calculate the following for the​ special-purpose eye-testing​ machine: Net 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.)   1. Calculate the following for the​ special-purpose eye-testing​ machine:   a. Net present value   b. Payback period   c. 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 $14,000terminal disposal value at the end of 10 ​years? Assume depreciation deductions are based on the$135,000 purchase cost and zero terminal disposal value using the​ straight-line method. Answer briefly in words without further calculations

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question

Techno Lab, a taxpaying​ entity, estimates that it can save $30,000 a year in cash operating costs for the next 10 years if it buys a​ special-purpose eye-testing machine at a cost of $135,000.

No terminal disposal value is expected.   Techno Labs' required rate of return is 10​%.

Assume all cash flows occur at​ year-end except for initial investment amounts.

Techno Labs uses​ straight-line depreciation. The income tax rate is 34% for all transactions that affect income taxes.

.

Requirement 1. Calculate the following for the​ special-purpose eye-testing​ machine:

  1. Net 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.)

 

1.
Calculate the following for the​ special-purpose eye-testing​ machine:
 
a.
Net present value
 
b.
Payback period
 
c.
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 $14,000terminal disposal value at the end of 10
​years? Assume depreciation deductions are based on the$135,000
purchase cost and zero terminal disposal value using the​ straight-line method. Answer briefly in words without further calculations
Reference Present Value of $1 Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 40% Periods 0.806 0.650 0.943 0.000 0.862 0.743 Period 1 0.980 0.962 0.926 0.893 0.877 0.847 0.833 0.820 0.794 0.781 0.769 0.758 0.714 Period 1 Period 2 0.961 0.025 0.890 0.857 0.826 0.707 0.780 0.718 0.604 0.672 0.630 0.610 0.592 0.574 0.510 Period 2 Period 3 0.942 0.889 0.840 0.794 0.751 0.712 0.675 0.641 0.600 0.579 0.551 0.524 0.500 0.477 Period 3 0.455 0.350 0.435 0.364 Period 4 0.924 0.855 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.451 0.423 0.307 0.373 0.329 0.260 Period 4 Period 5 0.906 0.822 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.370 0.341 0.315 0.291 0.200 0.250 0.180 0.143 0.186 Period 5 0.335 0.279 0.790 0.705 0.665 Period 6 0.888 0.630 0.584 0.507 0.458 0.410 0.370 0.303 0.275 0.207 0.133 0.250 0.198 0.227 Period 6 Period 7 0.871 0.760 0.583 0.513 0.452 0.400 0.354 0.314 0.249 0.222 0.178 0.159 0.095 Period 7 Period 8 0.853 0.731 0.627 0.540 0.487 0.404 0.351 0.305 0.266 0.233 0.204 0.179 0.123 0.088 0.157 0.125 0.139 0.108 Period 8 Period 9 0.837 0.703 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.187 0.144 0.108 0.094 0.082 0.048 Period 9 Period 10 0.820 0.676 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.137 0.116 0.099 0.085 0.073 0.062 0.035 Period 10 Period 11 0.804 0.650 0.527 0.429 0.350 0.287 0.237 0.195 0.16: 0.135 0.112 0.094 0.079 0.066 0.056 0.047 0.025 Period 11 Period 12 0.788 0.625 0.497 0.307 0.319 0.257 0.208 0.168 0.137 0.112 0.092 0.078 0.062 0.052 0.043 0.036 0.018 Period 12 Period 13 0.773 0.601 0.469 0.368 0.290 0.229 0.182 0.116 0.050 0.027 0.145 0.125 0.093 0.075 0.081 0.040 0.033 0.013 Period 13 Period 14 0.758 0.577 0.442 0.340 0.263 0.205 0.180 0.090 0.078 0.082 0.049 0.039 0.032 0.025 0.021 0.009 Period 14 Period 15 0.743 0.239 0.051 0.040 0.555 0.534 0.417 0.315 0.183 0.140 0.108 0.084 0.005 0.031 0.025 0.020 0.019 0.015 0.018 0.008 Period 15 Period 16 0.728 0.394 0.202 0.218 0.163 0.123 0.093 0.071 0.054 0.042 0.032 0.025 0.012 0.005 Period 16 0.026 0.020 0.015 0.012 0.009 0.003 Period 17 0.021 Period 17 0.714 0.513 0.371 0.270 0.198 0.146 0.108 0.080 0.080 0.051 0.045 0.034 Period 18 0.700 0.494 0.350 0.250 0.180 0.130 0.095 0.060 0.016 0.038 0.031 0.023 0.028 0.012 0.009 0.007 0.002 Period 18 Period 19 0.686 0.475 0.080 0.000 0.331 0.312 0.232 0.164 0.116 0.083 0.043 0.017 0.012 0.007 0.005 0.002 Period 19 Period 20 0.673 0.458 0.215 0.149 0.104 0.073 0.051 0.037 0.020 0.019 0.014 0.010 0.007 0.005 0.004 0.001 Period 20 0.294 0.199 0.044 0.038 Period 21 0.680 0.430 0.135 0.093 0.084 0.031 0.022 0.015 0.011 0.008 0.006 0.004 0.003 0.001 Period 21 0.000 0.007 Period 22 0.647 0.422 0.278 0.184 0.123 0.083 0.058 0.026 0.018 0.013 0.008 0.004 0.003 0.002 0.001 Period 22 Period 23 0.634 0.406 0.262 0.170 0.112 0.074 0.049 0.033 0.022 0.015 0.010 0.005 0.003 0.002 0.002 0.000 Period 23 Period 24 0.622 0.390 0.247 0.158 0.102 0.066 0.043 0.028 0.019 0.013 0.008 0.006 0.004 0.003 0.002 0.001 0.000 Period 24 Period 25 0.610 0.375 0.002 0.007 0.002 0.233 0.220 0.146 0.059 0.038 0.024 0.016 0.010 0.005 0.003 0.001 0.001 0.000 Period 25 Period 26 0.598 0.361 0.135 0.084 0.053 0.033 0.021 0.014 0.009 0.000 0.004 0.002 0.002 0.001 0.001 0.000 Period 26 Period 27 0.586 0.347 0.207 0.125 0.076 0.047 0.029 0.018 0.011 0.007 0.005 0.003 0.002 0.001 0.001 0.001 0.000 Period 27 Period 28 0.574 0.333 0.196 0.118 0.089 0.042 0.026 0.016 0.010 0.008 0.004 0.002 0.002 0.001 0.001 0.000 0.000 Period 28 Period 29 0.563 0.321 0.185 0.107 0.063 0.037 0.022 0.014 0.008 0.005 0.003 0.002 0.001 0.001 0.000 0.000 0.000 Period 29 Period 30 0.552 0.308 0.174 0.099 0.057 0.036 0.033 0.020 0.012 0.007 0.004 0.003 0.002 0.001 0.001 0.000 0.000 0.000 Period 30 Period 35 0.500 0.253 0.130 0.068 0.019 0.010 0.008 0.003 0.002 0.001 0.001 0.000 0.000 0.000 0.000 0.000 Period 35 Period 40 0.453 0.208 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Period 40 Print Done
Transcribed Image Text:Reference Present Value of $1 Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 40% Periods 0.806 0.650 0.943 0.000 0.862 0.743 Period 1 0.980 0.962 0.926 0.893 0.877 0.847 0.833 0.820 0.794 0.781 0.769 0.758 0.714 Period 1 Period 2 0.961 0.025 0.890 0.857 0.826 0.707 0.780 0.718 0.604 0.672 0.630 0.610 0.592 0.574 0.510 Period 2 Period 3 0.942 0.889 0.840 0.794 0.751 0.712 0.675 0.641 0.600 0.579 0.551 0.524 0.500 0.477 Period 3 0.455 0.350 0.435 0.364 Period 4 0.924 0.855 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.451 0.423 0.307 0.373 0.329 0.260 Period 4 Period 5 0.906 0.822 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.370 0.341 0.315 0.291 0.200 0.250 0.180 0.143 0.186 Period 5 0.335 0.279 0.790 0.705 0.665 Period 6 0.888 0.630 0.584 0.507 0.458 0.410 0.370 0.303 0.275 0.207 0.133 0.250 0.198 0.227 Period 6 Period 7 0.871 0.760 0.583 0.513 0.452 0.400 0.354 0.314 0.249 0.222 0.178 0.159 0.095 Period 7 Period 8 0.853 0.731 0.627 0.540 0.487 0.404 0.351 0.305 0.266 0.233 0.204 0.179 0.123 0.088 0.157 0.125 0.139 0.108 Period 8 Period 9 0.837 0.703 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.187 0.144 0.108 0.094 0.082 0.048 Period 9 Period 10 0.820 0.676 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.137 0.116 0.099 0.085 0.073 0.062 0.035 Period 10 Period 11 0.804 0.650 0.527 0.429 0.350 0.287 0.237 0.195 0.16: 0.135 0.112 0.094 0.079 0.066 0.056 0.047 0.025 Period 11 Period 12 0.788 0.625 0.497 0.307 0.319 0.257 0.208 0.168 0.137 0.112 0.092 0.078 0.062 0.052 0.043 0.036 0.018 Period 12 Period 13 0.773 0.601 0.469 0.368 0.290 0.229 0.182 0.116 0.050 0.027 0.145 0.125 0.093 0.075 0.081 0.040 0.033 0.013 Period 13 Period 14 0.758 0.577 0.442 0.340 0.263 0.205 0.180 0.090 0.078 0.082 0.049 0.039 0.032 0.025 0.021 0.009 Period 14 Period 15 0.743 0.239 0.051 0.040 0.555 0.534 0.417 0.315 0.183 0.140 0.108 0.084 0.005 0.031 0.025 0.020 0.019 0.015 0.018 0.008 Period 15 Period 16 0.728 0.394 0.202 0.218 0.163 0.123 0.093 0.071 0.054 0.042 0.032 0.025 0.012 0.005 Period 16 0.026 0.020 0.015 0.012 0.009 0.003 Period 17 0.021 Period 17 0.714 0.513 0.371 0.270 0.198 0.146 0.108 0.080 0.080 0.051 0.045 0.034 Period 18 0.700 0.494 0.350 0.250 0.180 0.130 0.095 0.060 0.016 0.038 0.031 0.023 0.028 0.012 0.009 0.007 0.002 Period 18 Period 19 0.686 0.475 0.080 0.000 0.331 0.312 0.232 0.164 0.116 0.083 0.043 0.017 0.012 0.007 0.005 0.002 Period 19 Period 20 0.673 0.458 0.215 0.149 0.104 0.073 0.051 0.037 0.020 0.019 0.014 0.010 0.007 0.005 0.004 0.001 Period 20 0.294 0.199 0.044 0.038 Period 21 0.680 0.430 0.135 0.093 0.084 0.031 0.022 0.015 0.011 0.008 0.006 0.004 0.003 0.001 Period 21 0.000 0.007 Period 22 0.647 0.422 0.278 0.184 0.123 0.083 0.058 0.026 0.018 0.013 0.008 0.004 0.003 0.002 0.001 Period 22 Period 23 0.634 0.406 0.262 0.170 0.112 0.074 0.049 0.033 0.022 0.015 0.010 0.005 0.003 0.002 0.002 0.000 Period 23 Period 24 0.622 0.390 0.247 0.158 0.102 0.066 0.043 0.028 0.019 0.013 0.008 0.006 0.004 0.003 0.002 0.001 0.000 Period 24 Period 25 0.610 0.375 0.002 0.007 0.002 0.233 0.220 0.146 0.059 0.038 0.024 0.016 0.010 0.005 0.003 0.001 0.001 0.000 Period 25 Period 26 0.598 0.361 0.135 0.084 0.053 0.033 0.021 0.014 0.009 0.000 0.004 0.002 0.002 0.001 0.001 0.000 Period 26 Period 27 0.586 0.347 0.207 0.125 0.076 0.047 0.029 0.018 0.011 0.007 0.005 0.003 0.002 0.001 0.001 0.001 0.000 Period 27 Period 28 0.574 0.333 0.196 0.118 0.089 0.042 0.026 0.016 0.010 0.008 0.004 0.002 0.002 0.001 0.001 0.000 0.000 Period 28 Period 29 0.563 0.321 0.185 0.107 0.063 0.037 0.022 0.014 0.008 0.005 0.003 0.002 0.001 0.001 0.000 0.000 0.000 Period 29 Period 30 0.552 0.308 0.174 0.099 0.057 0.036 0.033 0.020 0.012 0.007 0.004 0.003 0.002 0.001 0.001 0.000 0.000 0.000 Period 30 Period 35 0.500 0.253 0.130 0.068 0.019 0.010 0.008 0.003 0.002 0.001 0.001 0.000 0.000 0.000 0.000 0.000 Period 35 Period 40 0.453 0.208 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Period 40 Print Done
Reference Present Value of Annuity of $1.00 in Arrears* 4% Periods 2% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 40% Periods Period 1 0.980 0.962 0.043 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.808 0.794 0.781 0.769 0.758 0.714 Period 1 Period 2 1.942 1.886 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 1.492 1.457 1.424 1.392 1.361 1.331 1.224 Period 2 Period 3 2.884 2.775 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 2.042 1.981 1.923 1.868 1.816 1.766 1.589 Period 3 Period 4 3.808 3.630 3.465 3.312 3.170 3.037 2.014 2.798 2.690 2.580 2.494 2.404 2.320 2.241 2.166 2.096 1.849 Period 4 Period 5 4.713 4.452 4.212 3.903 3.791 3.605 3.433 3.274 3.127 2.991 3.328 2.864 2.745 2.635 2.532 2.436 2.345 2.035 Period 5 Period 6 5.601 5.242 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.187 3.020 2.885 2.759 2.643 2.534 2.188 Period 6 Period 7 6.472 6.002 5.582 5.208 4.868 4.504 4.288 4.039 3.812 3.605 3.416 3.242 3.083 2.937 2.802 2.677 2.283 Period 7 Period 8 7.325 6.733 6.210 5.747 5.335 4.98 4.630 4.344 4.078 3.837 3.619 3.421 3.241 3.076 2.925 2.786 2.331 Period 8 Period 9 8.162 7.435 6.802 6.247 5.759 5.328 4.940 4.607 4.303 4.031 3.786 3.566 3.366 3.184 3.019 2.868 2.379 Period 9 7.360 5.210 4.833 3.465 3.543 Period 10 8.983 8.111 6.710 6.145 5.650 4.494 4.192 3.923 3.682 3.269 3.092 2.930 2.414 Period 10 Period 11 9.787 8.760 7.887 7.139 6.495 5.038 5.453 5.020 4.856 4.327 4.035 3.776 3.335 3.147 2.978 2.438 Period 11 Period 12 10.575 9.385 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 4.127 3.851 3.606 3.387 3.190 3.013 2.456 Period 12 Period 13 11.348 9.086 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 4.203 3.912 3.656 3.427 3.223 3.040 2.469 Period 13 Period 14 12.106 10.563 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 4.265 3.962 3.695 3.459 3.249 3.061 2.478 Period 14 Period 15 12.840 11.118 9.712 8.559 7.806 6.811 6.142 5.575 5.092 4.675 4.315 4.001 3.726 3.483 3.268 3.076 2.484 Period 15 Period 16 13.578 11.652 10.106 8.851 7.824 6.974 6.265 5.668 5.162 4.730 4.357 4.033 3.751 3.503 3.283 3.088 2.489 Period 16 Period 17 14.292 12.186 10.477 9.122 8.022 7.120 6.373 5.749 5.222 4.775 4.391 4.059 3.771 3.518 3.295 3.097 2.492 Period 17 Period 18 14.992 12.659 10.828 9.372 8.201 7.250 6.487 5.818 5.273 4.812 4.843 4.419 4.080 3.786 3.529 3.304 3.104 2.494 Period 18 Period 19 15.678 13.134 11.158 9.604 8.365 7.366 6.550 5.877 5.316 4.442 4.097 3.799 3.539 3.311 3.109 2.496 Period 19 7.480 4.870 4.460 4.476 4.488 Period 20 18.351 13.590 11.470 9.818 8.514 6.623 5.929 5.353 4.110 3.808 3.546 3.316 3.113 2.497 Period 20 Period 21 17.011 14.020 11.764 10.017 8.649 7.562 6.687 5.973 5.384 4.891 4.121 3.816 3.551 3.320 3.116 2.498 Period 21 Period 22 17.658 14.451 4.900 3.822 3.323 12.042 12.303 10.201 8.772 7.645 6.743 6.011 5.410 4.130 3.556 3.118 2.498 Period 22 Period 23 18.292 14.857 10.371 8.883 7.718 3.559 6.792 6.835 6.044 5.432 4.925 4.499 4.137 3.827 3.325 3.120 2.499 Period 23 10.529 4.937 4.948 Period 24 18.914 15.247 12.550 8.985 7.784 6.073 5.451 4.507 4.143 3.831 3.562 3.327 3.121 2.499 Period 24 Period 25 19.523 15.622 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.514 4.147 3.834 3.564 3.329 3.122 2.499 Period 25 Period 26 20.121 15.983 13.003 10.810 9.181 7.896 6.906 6.118 5.480 4.520 3.837 4.958 4.964 4.151 3.566 3.330 3.123 2.500 Period 26 Period 27 20.707 18.330 13.211 10.935 9.237 7.943 6.935 6.136 5.492 4.524 4.154 3.839 3.567 3.331 3.123 2.500 Period 27 13.406 6.061 4.970 4.975 Period 28 21.281 18.663 11.051 9.307 7.984 2.500 Period 28 6.152 6.168 6.177 5.502 5.510 4.528 4.157 3.840 3.568 3.331 3.124 Period 29 21.844 16.984 13.591 11.158 9.370 8.022 6.983 4.531 4.159 3.841 3.569 3.332 3.124 2.500 Period 29 Period 30 22.396 17.292 13.765 11.258 9.427 8.055 7.003 5.517 4.979 4.534 4.160 3.842 3.569 3.332 3.124 2.500 Period 30 Period 35 24.999 18.665 14.498 11.655 9.644 8.176 7.070 6.215 5.539 4.992 4.541 4.164 3.845 3.571 3.333 3.125 2.500 Period 35 Period 40 27.355 19.793 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4.997 4.544 4.166 3.846 3.571 3.333 3.125 2.500 Period 40 * Payments (or receipts) at the end of each period. Print Done
Transcribed Image Text:Reference Present Value of Annuity of $1.00 in Arrears* 4% Periods 2% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 40% Periods Period 1 0.980 0.962 0.043 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.808 0.794 0.781 0.769 0.758 0.714 Period 1 Period 2 1.942 1.886 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 1.492 1.457 1.424 1.392 1.361 1.331 1.224 Period 2 Period 3 2.884 2.775 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 2.042 1.981 1.923 1.868 1.816 1.766 1.589 Period 3 Period 4 3.808 3.630 3.465 3.312 3.170 3.037 2.014 2.798 2.690 2.580 2.494 2.404 2.320 2.241 2.166 2.096 1.849 Period 4 Period 5 4.713 4.452 4.212 3.903 3.791 3.605 3.433 3.274 3.127 2.991 3.328 2.864 2.745 2.635 2.532 2.436 2.345 2.035 Period 5 Period 6 5.601 5.242 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.187 3.020 2.885 2.759 2.643 2.534 2.188 Period 6 Period 7 6.472 6.002 5.582 5.208 4.868 4.504 4.288 4.039 3.812 3.605 3.416 3.242 3.083 2.937 2.802 2.677 2.283 Period 7 Period 8 7.325 6.733 6.210 5.747 5.335 4.98 4.630 4.344 4.078 3.837 3.619 3.421 3.241 3.076 2.925 2.786 2.331 Period 8 Period 9 8.162 7.435 6.802 6.247 5.759 5.328 4.940 4.607 4.303 4.031 3.786 3.566 3.366 3.184 3.019 2.868 2.379 Period 9 7.360 5.210 4.833 3.465 3.543 Period 10 8.983 8.111 6.710 6.145 5.650 4.494 4.192 3.923 3.682 3.269 3.092 2.930 2.414 Period 10 Period 11 9.787 8.760 7.887 7.139 6.495 5.038 5.453 5.020 4.856 4.327 4.035 3.776 3.335 3.147 2.978 2.438 Period 11 Period 12 10.575 9.385 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 4.127 3.851 3.606 3.387 3.190 3.013 2.456 Period 12 Period 13 11.348 9.086 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 4.203 3.912 3.656 3.427 3.223 3.040 2.469 Period 13 Period 14 12.106 10.563 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 4.265 3.962 3.695 3.459 3.249 3.061 2.478 Period 14 Period 15 12.840 11.118 9.712 8.559 7.806 6.811 6.142 5.575 5.092 4.675 4.315 4.001 3.726 3.483 3.268 3.076 2.484 Period 15 Period 16 13.578 11.652 10.106 8.851 7.824 6.974 6.265 5.668 5.162 4.730 4.357 4.033 3.751 3.503 3.283 3.088 2.489 Period 16 Period 17 14.292 12.186 10.477 9.122 8.022 7.120 6.373 5.749 5.222 4.775 4.391 4.059 3.771 3.518 3.295 3.097 2.492 Period 17 Period 18 14.992 12.659 10.828 9.372 8.201 7.250 6.487 5.818 5.273 4.812 4.843 4.419 4.080 3.786 3.529 3.304 3.104 2.494 Period 18 Period 19 15.678 13.134 11.158 9.604 8.365 7.366 6.550 5.877 5.316 4.442 4.097 3.799 3.539 3.311 3.109 2.496 Period 19 7.480 4.870 4.460 4.476 4.488 Period 20 18.351 13.590 11.470 9.818 8.514 6.623 5.929 5.353 4.110 3.808 3.546 3.316 3.113 2.497 Period 20 Period 21 17.011 14.020 11.764 10.017 8.649 7.562 6.687 5.973 5.384 4.891 4.121 3.816 3.551 3.320 3.116 2.498 Period 21 Period 22 17.658 14.451 4.900 3.822 3.323 12.042 12.303 10.201 8.772 7.645 6.743 6.011 5.410 4.130 3.556 3.118 2.498 Period 22 Period 23 18.292 14.857 10.371 8.883 7.718 3.559 6.792 6.835 6.044 5.432 4.925 4.499 4.137 3.827 3.325 3.120 2.499 Period 23 10.529 4.937 4.948 Period 24 18.914 15.247 12.550 8.985 7.784 6.073 5.451 4.507 4.143 3.831 3.562 3.327 3.121 2.499 Period 24 Period 25 19.523 15.622 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.514 4.147 3.834 3.564 3.329 3.122 2.499 Period 25 Period 26 20.121 15.983 13.003 10.810 9.181 7.896 6.906 6.118 5.480 4.520 3.837 4.958 4.964 4.151 3.566 3.330 3.123 2.500 Period 26 Period 27 20.707 18.330 13.211 10.935 9.237 7.943 6.935 6.136 5.492 4.524 4.154 3.839 3.567 3.331 3.123 2.500 Period 27 13.406 6.061 4.970 4.975 Period 28 21.281 18.663 11.051 9.307 7.984 2.500 Period 28 6.152 6.168 6.177 5.502 5.510 4.528 4.157 3.840 3.568 3.331 3.124 Period 29 21.844 16.984 13.591 11.158 9.370 8.022 6.983 4.531 4.159 3.841 3.569 3.332 3.124 2.500 Period 29 Period 30 22.396 17.292 13.765 11.258 9.427 8.055 7.003 5.517 4.979 4.534 4.160 3.842 3.569 3.332 3.124 2.500 Period 30 Period 35 24.999 18.665 14.498 11.655 9.644 8.176 7.070 6.215 5.539 4.992 4.541 4.164 3.845 3.571 3.333 3.125 2.500 Period 35 Period 40 27.355 19.793 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4.997 4.544 4.166 3.846 3.571 3.333 3.125 2.500 Period 40 * Payments (or receipts) at the end of each period. Print Done
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS