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What are the benefits and limitations of using the payback method to choose between​ projects?

What are the benefits and limitations of using the payback method to choose between​ projects?

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
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Question

Romanos Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $5,000,000 for the year. Laura Berenstein​, staff analyst at

Romanos​, is preparing an analysis of the three projects under consideration by Chester Romanos​, the​ company's owner.

 

Data Table

 

A

B

C

D

1

 

Project A

Project B

Project C

2

Projected cash outflow

 

 

 

3

Net initial investment

$3,000,000

$2,100,000

$3,000,000

4

Projected cash inflows

 

 

 

5

Year 1

$1,200,000

$1,200,000

$1,700,000

6

Year 2

1,200,000

600,000

1,700,000

7

Year 3

1,200,000

500,000

200,000

8

Year 4

1,200,000

 

100,000

9

Required rate of return

10%

10%

10%

 

 

 

1.

Because the​ company's cash is​ limited, Romanos thinks the payback method should be used to choose between the capital budgeting projects.
 

a.

What are the benefits and limitations of using the payback method to choose between​ projects?
 

b.

Calculate the payback period for each of the three projects. Ignore income taxes. Using the payback​ method, which projects should Romanos ​choose?

2.

Berenstein

thinks that projects should be selected based on their NPVs. Assume all cash flows occur at the end of the year except for initial investment amounts. Calculate the NPV for each project. Ignore income taxes.

3.

Which​ projects, if​ any, would you recommend​ funding? Briefly explain why.
Present Value of $1 Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 40% Periods Period 1 0.080 0.062 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 0.794 0.781 0.769 0.758 0.714 Period 1 Period 2 0.961 0.025 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.672 0.650 0.630 0.610 0.592 0.574 0.510 Period 2 0.840 0.792 Period 3 0.942 0.889 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.551 0.524 0.500 0.477 0.455 0.435 0.364 Period 3 Period 4 0.924 0.855 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.451 0.423 0.397 0.373 0.350 0.329 0.260 Period 4 Period 5 0.908 0.822 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.370 0.341 0.315 0.201 0.260 0.250 0.188 Period 5 0.180 0.159 0.143 Period 6 0.888 0.790 0.705 0.630 0.584 0.507 0.456 0.410 0.370 0.335 0.303 0.275 0.250 0.227 0.207 0.133 Period 6 Period 7 0.871 0.760 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.249 0.222 0.198 0.178 0.005 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 0.157 0.139 0.123 0.108 0.068 Period 8 Period 9 0.837 0.703 0.500 0.263 0.194 0.004 0.592 0.558 0.424 0.361 0.308 0.225 0.167 0.144 0.125 0.108 0.082 0.048 Period 9 Period 10 0.820 0.676 0.463 0.386 0.322 0.270 0.227 0.191 0.110 0.000 0.082 0.162 0.135 0.137 0.112 0.137 0.085 0.073 0.035 Period 10 Period 11 0.804 0.182 0.112 0.092 0.076 0.650 0.527 0.429 0.350 0.287 0.237 0.195 0.188 0.094 0.079 0.062 0.052 0.050 0.006 0.058 0.047 0.025 Period 11 Period 12 0.788 0.625 0.497 0.397 0.319 0.257 0.208 0.043 0.036 0.018 Period 12 Period 13 0.773 0.601 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.075 0.061 0.040 0.033 0.027 0.013 Period 13 Period 14 0.758 0.577 0.442 0.340 0.263 0.205 0.180 0.125 0.009 0.078 0.062 0.049 0.039 0.032 0.025 0.021 0.009 Period 14 Period 15 0.743 0.555 0.417 0.315 0.239 0.183 0.140 0.020 0.016 0.108 0.003 0.084 0.065 0.051 0.040 0.031 0.025 0.006 Period 15 0.202 0.270 0.218 0.163 0.148 Period 16 0.728 0.534 0.304 0.123 0.071 0.054 0.042 0.032 0.015 0.025 0.019 0.020 0.015 0.012 0.005 Period 16 Period 17 0.714 0.513 0.371 0.198 0.108 0.080 0.080 0.045 0.034 0.026 0.012 0.009 0.003 Period 17 Period 18 0.700 0.494 0.350 0.250 0.180 0.130 0.095 0.069 0.051 0.021 0.007 0.038 0.031 0.028 0.016 0.012 0.009 0.002 Period 18 0.475 0.456 0.083 0.073 Period 19 0.686 0.331 0.232 0.184 0.116 0.000 0.043 0.023 0.017 0.012 0.009 0.007 0.005 0.002 Period 19 Period 20 0.673 0.312 0.215 0.149 0.104 0.051 0.037 0.028 0.019 0.014 0.010 0.007 0.005 0.004 0.001 Period 20 Period 21 0.660 0.439 0.294 0.199 0.135 0.093 0.084 0.044 0.031 0.022 0.015 0.011 0.008 0.008 0.004 0.003 0.001 Period 21 Period 22 0.647 0.422 0.278 0.184 0.123 0.083 0.056 0.038 0.026 0.018 0.013 0.009 0.006 0.004 0.003 0.002 0.001 Period 22 0.262 0.170 0.112 0.033 0.010 0.008 Period 23 0.634 0.406 0.074 0.049 0.022 0.002 0.015 0.013 0.007 0.005 0.003 0.002 0.000 Period 23 Period 24 0.622 0.390 0.247 0.158 0.102 0.068 0.043 0.028 0.019 0.006 0.004 0.003 0.002 0.001 0.000 Period 24 Period 25 0.610 0.375 0.003 0.002 0.001 0.001 0.233 0.148 0.092 0.059 0.053 0.038 0.024 0.018 0.010 0.007 0.005 0.002 0.001 0.000 Period 25 Period 26 0.598 0.361 0.084 0.000 0.220 0.207 0.135 0.033 0.021 0.014 0.008 0.004 0.002 0.001 0.000 Period 26 Period 27 0.588 0.347 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 0.190 0.116 0.060 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 0.083 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 0.000 0.068 Period 30 0.552 0.308 0.174 0.057 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 0.036 0.019 0.010 0.006 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 0.007 0.040 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
Transcribed Image Text:Present Value of $1 Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 40% Periods Period 1 0.080 0.062 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 0.794 0.781 0.769 0.758 0.714 Period 1 Period 2 0.961 0.025 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.672 0.650 0.630 0.610 0.592 0.574 0.510 Period 2 0.840 0.792 Period 3 0.942 0.889 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.551 0.524 0.500 0.477 0.455 0.435 0.364 Period 3 Period 4 0.924 0.855 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.451 0.423 0.397 0.373 0.350 0.329 0.260 Period 4 Period 5 0.908 0.822 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.370 0.341 0.315 0.201 0.260 0.250 0.188 Period 5 0.180 0.159 0.143 Period 6 0.888 0.790 0.705 0.630 0.584 0.507 0.456 0.410 0.370 0.335 0.303 0.275 0.250 0.227 0.207 0.133 Period 6 Period 7 0.871 0.760 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.249 0.222 0.198 0.178 0.005 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 0.157 0.139 0.123 0.108 0.068 Period 8 Period 9 0.837 0.703 0.500 0.263 0.194 0.004 0.592 0.558 0.424 0.361 0.308 0.225 0.167 0.144 0.125 0.108 0.082 0.048 Period 9 Period 10 0.820 0.676 0.463 0.386 0.322 0.270 0.227 0.191 0.110 0.000 0.082 0.162 0.135 0.137 0.112 0.137 0.085 0.073 0.035 Period 10 Period 11 0.804 0.182 0.112 0.092 0.076 0.650 0.527 0.429 0.350 0.287 0.237 0.195 0.188 0.094 0.079 0.062 0.052 0.050 0.006 0.058 0.047 0.025 Period 11 Period 12 0.788 0.625 0.497 0.397 0.319 0.257 0.208 0.043 0.036 0.018 Period 12 Period 13 0.773 0.601 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.075 0.061 0.040 0.033 0.027 0.013 Period 13 Period 14 0.758 0.577 0.442 0.340 0.263 0.205 0.180 0.125 0.009 0.078 0.062 0.049 0.039 0.032 0.025 0.021 0.009 Period 14 Period 15 0.743 0.555 0.417 0.315 0.239 0.183 0.140 0.020 0.016 0.108 0.003 0.084 0.065 0.051 0.040 0.031 0.025 0.006 Period 15 0.202 0.270 0.218 0.163 0.148 Period 16 0.728 0.534 0.304 0.123 0.071 0.054 0.042 0.032 0.015 0.025 0.019 0.020 0.015 0.012 0.005 Period 16 Period 17 0.714 0.513 0.371 0.198 0.108 0.080 0.080 0.045 0.034 0.026 0.012 0.009 0.003 Period 17 Period 18 0.700 0.494 0.350 0.250 0.180 0.130 0.095 0.069 0.051 0.021 0.007 0.038 0.031 0.028 0.016 0.012 0.009 0.002 Period 18 0.475 0.456 0.083 0.073 Period 19 0.686 0.331 0.232 0.184 0.116 0.000 0.043 0.023 0.017 0.012 0.009 0.007 0.005 0.002 Period 19 Period 20 0.673 0.312 0.215 0.149 0.104 0.051 0.037 0.028 0.019 0.014 0.010 0.007 0.005 0.004 0.001 Period 20 Period 21 0.660 0.439 0.294 0.199 0.135 0.093 0.084 0.044 0.031 0.022 0.015 0.011 0.008 0.008 0.004 0.003 0.001 Period 21 Period 22 0.647 0.422 0.278 0.184 0.123 0.083 0.056 0.038 0.026 0.018 0.013 0.009 0.006 0.004 0.003 0.002 0.001 Period 22 0.262 0.170 0.112 0.033 0.010 0.008 Period 23 0.634 0.406 0.074 0.049 0.022 0.002 0.015 0.013 0.007 0.005 0.003 0.002 0.000 Period 23 Period 24 0.622 0.390 0.247 0.158 0.102 0.068 0.043 0.028 0.019 0.006 0.004 0.003 0.002 0.001 0.000 Period 24 Period 25 0.610 0.375 0.003 0.002 0.001 0.001 0.233 0.148 0.092 0.059 0.053 0.038 0.024 0.018 0.010 0.007 0.005 0.002 0.001 0.000 Period 25 Period 26 0.598 0.361 0.084 0.000 0.220 0.207 0.135 0.033 0.021 0.014 0.008 0.004 0.002 0.001 0.000 Period 26 Period 27 0.588 0.347 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 0.190 0.116 0.060 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 0.083 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 0.000 0.068 Period 30 0.552 0.308 0.174 0.057 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 0.036 0.019 0.010 0.006 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 0.007 0.040 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
Present Value of Annuity of $1.00 in Arrears* Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 40% Periods Period 1 0.980 0.002 0.943 0.026 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 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 2.914 2.798 2.690 2.589 2.494 2.404 2.320 2.241 2.166 2.096 1.849 Period 4 Period 5 4.713 Period 6 4.452 4.212 3.127 2.436 3.093 4.623 3.791 3.605 4.111 3.433 3.274 2.991 2.864 2.745 2.635 2.532 2.345 2.035 Period 5 5.601 5.242 4.017 4.355 3.889 3.685 3.498 3.326 3.167 3.020 2.885 2.759 2.643 2.534 2.168 Period 6 Period 7 6.472 6.002 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 3.416 3.242 3.083 2.937 2.802 2.677 2.263 Period 7 Period 8 7.325 6.733 6.210 5.747 5.335 4.908 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 8.182 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 Period 10 8.983 8.111 7.360 6.710 6.145 5.650 5.218 4.833 4.494 4.192 3.923 3.682 3.465 3.269 3.092 2.030 2.414 Period 10 Period 11 9.787 8.760 7.887 7.139 6.495 5.938 5.453 5.020 4.656 4.327 4.035 3.776 3.543 3.335 3.147 2.978 2.438 Period 11 Period 12 10.575 9.385 8.384 7.536 6.814 6.194 5.680 5.197 4.793 4.430 4.127 3.851 3.606 3.387 3.190 3.013 2.456 Period 12 Period 13 11.348 9.986 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 4.203 3.912 3.658 3.427 3.223 3.040 2.469 Period 13 Period 14 12.108 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 6.142 5.575 3.268 3.283 Period 15 12.849 11.118 9.712 8.559 7.606 6.811 5.092 4.675 4.315 4.001 3.726 3.483 3.076 2.484 Period 15 Period 16 13.578 11.652 10.106 8.851 7.824 6.974 6.265 5.688 5.162 4.730 4.357 4.033 3.751 3.503 3.088 2.489 Period 16 3.771 3.786 3.709 Period 17 14.292 12.166 10.477 9.122 8.022 7.120 6.373 5.749 5.222 4.775 4.391 4.059 3.518 3.205 3.097 2.492 Period 17 Period 18 14.992 12.659 10.828 9.372 8.201 7.250 6.467 5.818 5.273 4.812 4.419 4.080 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 5.318 4.843 4.442 4.007 3.539 3.311 3.109 2.496 Period 19 Period 20 18.351 13.590 11.470 9.818 8.514 7.489 6.623 5.920 5.353 4.870 4.460 4.110 3.808 3.546 3.316 3.113 2.497 Period 20 Period 21 17.011 14.029 11.784 10.017 8.649 7.562 6.687 5.973 5.384 4.891 4.476 4.121 3.816 3.551 3.320 3.116 2.498 Period 21 Period 22 17.658 14.451 12.042 10.201 8.772 7.645 6.743 6.011 5.410 4.900 4.488 4.130 3.822 3.556 3.323 3.118 2.498 Period 22 Period 23 18.292 14.857 12.303 10.371 8.883 7.718 6.792 6.044 5.432 4.925 4.499 4.137 3.827 3.559 3.325 3.120 2.499 Period 23 6.073 6.097 Period 24 18.014 15.247 4.937 4.948 12.550 10.529 8.085 7.784 6.835 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 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 9.161 7.896 6.908 6.118 5.480 4.956 4.520 4.151 3.837 3.566 3.330 3.123 2.500 Period 26 Period 27 20.707 16.330 13.211 10.935 9.237 7.943 6.935 6.136 5.492 4.964 4.524 4.154 3.839 3.567 3.331 3.123 2.500 Period 27 4.070 4.975 Period 28 21.281 16.683 13.406 11.051 9.307 7.984 6.961 6.152 5.502 4.528 4.157 3.840 3.568 3.331 3.124 2.500 Period 28 Period 29 21.844 16.984 13.591 11.158 9.370 8.022 6.983 6.186 5.510 4.531 4.159 3.841 3.569 3.332 3.124 2.500 Period 29 Period 30 22.398 17.292 13.765 11.258 9.427 8.055 7.003 6.177 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.
Transcribed Image Text:Present Value of Annuity of $1.00 in Arrears* Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 40% Periods Period 1 0.980 0.002 0.943 0.026 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 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 2.914 2.798 2.690 2.589 2.494 2.404 2.320 2.241 2.166 2.096 1.849 Period 4 Period 5 4.713 Period 6 4.452 4.212 3.127 2.436 3.093 4.623 3.791 3.605 4.111 3.433 3.274 2.991 2.864 2.745 2.635 2.532 2.345 2.035 Period 5 5.601 5.242 4.017 4.355 3.889 3.685 3.498 3.326 3.167 3.020 2.885 2.759 2.643 2.534 2.168 Period 6 Period 7 6.472 6.002 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 3.416 3.242 3.083 2.937 2.802 2.677 2.263 Period 7 Period 8 7.325 6.733 6.210 5.747 5.335 4.908 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 8.182 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 Period 10 8.983 8.111 7.360 6.710 6.145 5.650 5.218 4.833 4.494 4.192 3.923 3.682 3.465 3.269 3.092 2.030 2.414 Period 10 Period 11 9.787 8.760 7.887 7.139 6.495 5.938 5.453 5.020 4.656 4.327 4.035 3.776 3.543 3.335 3.147 2.978 2.438 Period 11 Period 12 10.575 9.385 8.384 7.536 6.814 6.194 5.680 5.197 4.793 4.430 4.127 3.851 3.606 3.387 3.190 3.013 2.456 Period 12 Period 13 11.348 9.986 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 4.203 3.912 3.658 3.427 3.223 3.040 2.469 Period 13 Period 14 12.108 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 6.142 5.575 3.268 3.283 Period 15 12.849 11.118 9.712 8.559 7.606 6.811 5.092 4.675 4.315 4.001 3.726 3.483 3.076 2.484 Period 15 Period 16 13.578 11.652 10.106 8.851 7.824 6.974 6.265 5.688 5.162 4.730 4.357 4.033 3.751 3.503 3.088 2.489 Period 16 3.771 3.786 3.709 Period 17 14.292 12.166 10.477 9.122 8.022 7.120 6.373 5.749 5.222 4.775 4.391 4.059 3.518 3.205 3.097 2.492 Period 17 Period 18 14.992 12.659 10.828 9.372 8.201 7.250 6.467 5.818 5.273 4.812 4.419 4.080 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 5.318 4.843 4.442 4.007 3.539 3.311 3.109 2.496 Period 19 Period 20 18.351 13.590 11.470 9.818 8.514 7.489 6.623 5.920 5.353 4.870 4.460 4.110 3.808 3.546 3.316 3.113 2.497 Period 20 Period 21 17.011 14.029 11.784 10.017 8.649 7.562 6.687 5.973 5.384 4.891 4.476 4.121 3.816 3.551 3.320 3.116 2.498 Period 21 Period 22 17.658 14.451 12.042 10.201 8.772 7.645 6.743 6.011 5.410 4.900 4.488 4.130 3.822 3.556 3.323 3.118 2.498 Period 22 Period 23 18.292 14.857 12.303 10.371 8.883 7.718 6.792 6.044 5.432 4.925 4.499 4.137 3.827 3.559 3.325 3.120 2.499 Period 23 6.073 6.097 Period 24 18.014 15.247 4.937 4.948 12.550 10.529 8.085 7.784 6.835 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 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 9.161 7.896 6.908 6.118 5.480 4.956 4.520 4.151 3.837 3.566 3.330 3.123 2.500 Period 26 Period 27 20.707 16.330 13.211 10.935 9.237 7.943 6.935 6.136 5.492 4.964 4.524 4.154 3.839 3.567 3.331 3.123 2.500 Period 27 4.070 4.975 Period 28 21.281 16.683 13.406 11.051 9.307 7.984 6.961 6.152 5.502 4.528 4.157 3.840 3.568 3.331 3.124 2.500 Period 28 Period 29 21.844 16.984 13.591 11.158 9.370 8.022 6.983 6.186 5.510 4.531 4.159 3.841 3.569 3.332 3.124 2.500 Period 29 Period 30 22.398 17.292 13.765 11.258 9.427 8.055 7.003 6.177 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.
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