Periods 1%Period 1Period 2Period 3Period 4Period 5Period 6Period 7Period 8Period 9Period 10Period 11Period 12Period 13Period 14Period 15Period 16Period 17Period 18Period 19Period 20Present Value of Ordinary Annuity of $10.990 0.9802% 3%0.9711.9134%0.9621.8863.902 3.808 3.717 3.630 3.546 3.465 3.3874.853 4.713 4.580 4.452 4.329 4.212 4.1006.728 6.4725% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20%0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.8331.970 1.9421.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1.605 1.566 1.5282.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 2.1063.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.5893.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.9915.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.3266.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.6057.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.8378.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.0319.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.494 4.19210.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.32711.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.421 5.197 4.793 4.43912.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 5.342 4.910 4.53313.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.61113.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 5.575 5.092 4.6758.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.7309.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.7759.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.8129.604 8.950 8.365 7.366 6.550 6.198 5.8779.818 9.129 8.514 7.469 6.623 6.259 5.9295.316 4.8445.353 4.8707.562 6.687 6.312 5.973 5.3844.8917.645 6.743 6.359 6.011 5.410 4.9097.718 6.792 6.399 6.044 5.432 4.9257.784 6.835 6.434 6.073 5.451 4.937Period 21Period 22Period 23Period 2410.838 10.106 9.44711.274 10.477 9.76311.690 10.828 10.05913.134 12.085 11.158 10.33612.462 11.470 10.59418.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.64919.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.77220.456 18.292 | 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.88321.243 18.914 | 16.936 | 15.247 | 13.799 12.550 11.469 | 10.529 | 9.707 | 8.98514.718 13.578 12.561 11.65215.562 14.292 13.166 12.16616.398 14.992 13.754 12.65917.226 15.678 14.32418.046 16.351 14.877 13.590 YearO23LO568910Net Cash OutflowsAmount Invested$4,600,000Net Cash InflowsAnnualAccumulated$ 4,320,000 $590,000460,000330,000200,000200,000200,000200,000200,000200,000(Round your answer to one decimal place.)The payback for Option 2 (purchase new machine) is4,320,0004,910,0005,370,0005,700,0005,900,0006,100,0006,300,0006,500,0006,700,0006,900,000years.

Payback period is the time taken to recover the initial investment. It is one of the popular capital…

Year 0 1 2 3 4 01 5 6 7 8 9 10 Net Cash Outflows Amount Invested $ 4,600,000 Net Cash Inflows Annual Accumulated $ 4,320,000 $ 590,000 460,000 330,000 200,000 200,000 200,000 200,000 200,000 200,000 (Round your answer to one decimal place.) The payback for Option 2 (purchase new machine) is 4,320,000 4,910,000 5,370,000 5,700,000 5,900,000 6,100,000 6,300,000 6,500,000 6,700,000 6,900,000 years.

Year 0 1 2 3 4 01 5 6 7 8 9 10 Net Cash Outflows Amount Invested $ 4,600,000 Net Cash Inflows Annual Accumulated $ 4,320,000 $ 590,000 460,000 330,000 200,000 200,000 200,000 200,000 200,000 200,000 (Round your answer to one decimal place.) The payback for Option 2 (purchase new machine) is 4,320,000 4,910,000 5,370,000 5,700,000 5,900,000 6,100,000 6,300,000 6,500,000 6,700,000 6,900,000 years.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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