Chapter 8, Problem 30P

To determine

To construct:A choice table for interest tables from 0% to 100%

Answer to Problem 30P

From table below, from 0% to 32.3%, Alternative D should be preferred. Beyond that AlternativeA should be selected.

Explanation of Solution

NPV of Alternative A $=-2,500+850(P/A,i,5)+2,500(P/F,i,5)$

NPV of Alternative B $=-4,800+700(P/A,i,6)+1,750(P/F,i,6)$

NPV of Alternative C $=-4,200+850(P/A,i,8)+1,250(P/F,i,8)$

NPV of Alternative D $=-3,600+1,300(P/A,i,4)+3,000(P/F,i,4)$

Choice table for interest from 0% to 100%

Interest	A	B	C	D
0%	4,250	1,150	3,850	4,600
1%	4,004	905	3,458	4,355
2%	3,771	675	3,094	4,122
3%	3,549	458	2,753	3,898
4%	3,339	253	2,436	3,683
5%	3,139	59	2,140	3,478
6%	2,949	(124)	1,863	3,281
7%	2,768	(297)	1,603	3,092
8%	2,595	(461)	1,360	2,911
9%	2,431	(616)	1,132	2,737
10%	2,274	(763)	918	2,570
11%	2,125	(903)	717	2,409
12%	1,983	(1,035)	527	2,255
13%	1,847	(1,161)	349	2,107
14%	1,717	(1,281)	181	1,964
15%	1,592	(1,394)	23	1,827
16%	1,473	(1,502)	(127)	1,695
17%	1,360	(1,605)	(268)	1,567
18%	1,251	(1,703)	(402)	1,444
19%	1,147	(1,797)	(528)	1,326
20%	1,047	(1,886)	(648)	1,212
21%	951	(1,971)	(761)	1,102
22%	859	(2,052)	(869)	996
23%	771	(2,130)	(971)	893
24%	686	(2,204)	(1,068)	794
25%	605	(2,275)	(1,161)	699
26%	527	(2,343)	(1,249)	606
27%	452	(2,408)	(1,332)	517
28%	380	(2,471)	(1,412)	431
29%	310	(2,530)	(1,488)	347
30%	244	(2,588)	(1,561)	266
31%	179	(2,642)	(1,630)	188
32%	117	(2,695)	(1,696)	113
33%	58	(2,746)	(1,760)	39
34%	-	(2,795)	(1,820)	(32)
35%	(55)	(2,841)	(1,878)	(101)
36%	(109)	(2,886)	(1,934)	(168)
37%	(161)	(2,930)	(1,987)	(232)
38%	(211)	(2,971)	(2,038)	(295)
39%	(259)	(3,011)	(2,087)	(356)
40%	(305)	(3,050)	(2,134)	(415)
41%	(350)	(3,087)	(2,180)	(472)
42%	(394)	(3,123)	(2,223)	(528)
43%	(436)	(3,158)	(2,265)	(582)
44%	(476)	(3,191)	(2,305)	(635)
45%	(516)	(3,224)	(2,344)	(686)
46%	(554)	(3,255)	(2,381)	(736)
47%	(591)	(3,285)	(2,417)	(784)
48%	(626)	(3,314)	(2,452)	(831)
49%	(661)	(3,342)	(2,485)	(877)
50%	(695)	(3,369)	(2,518)	(921)
51%	(727)	(3,396)	(2,549)	(964)
52%	(759)	(3,421)	(2,579)	(1,006)
53%	(789)	(3,446)	(2,608)	(1,047)
54%	(819)	(3,470)	(2,636)	(1,087)
55%	(848)	(3,493)	(2,663)	(1,126)
56%	(876)	(3,515)	(2,690)	(1,164)
57%	(903)	(3,537)	(2,715)	(1,201)
58%	(929)	(3,558)	(2,740)	(1,237)
59%	(955)	(3,579)	(2,764)	(1,272)
60%	(980)	(3,599)	(2,787)	(1,306)
61%	(1,004)	(3,618)	(2,810)	(1,340)
62%	(1,028)	(3,637)	(2,832)	(1,372)
63%	(1,051)	(3,655)	(2,853)	(1,404)
64%	(1,073)	(3,673)	(2,873)	(1,435)
65%	(1,095)	(3,690)	(2,893)	(1,465)
66%	(1,116)	(3,706)	(2,913)	(1,495)
67%	(1,137)	(3,723)	(2,932)	(1,523)
68%	(1,157)	(3,739)	(2,950)	(1,552)
69%	(1,176)	(3,754)	(2,968)	(1,579)
70%	(1,195)	(3,769)	(2,985)	(1,606)
71%	(1,214)	(3,784)	(3,002)	(1,632)
72%	(1,232)	(3,798)	(3,019)	(1,658)
73%	(1,249)	(3,812)	(3,035)	(1,683)
74%	(1,267)	(3,825)	(3,050)	(1,708)
75%	(1,283)	(3,838)	(3,065)	(1,732)
76%	(1,300)	(3,851)	(3,080)	(1,755)
77%	(1,316)	(3,864)	(3,095)	(1,778)
78%	(1,331)	(3,876)	(3,109)	(1,801)
79%	(1,347)	(3,888)	(3,122)	(1,823)
80%	(1,361)	(3,899)	(3,136)	(1,844)
81%	(1,376)	(3,911)	(3,149)	(1,865)
82%	(1,390)	(3,922)	(3,162)	(1,886)
83%	(1,404)	(3,932)	(3,174)	(1,906)
84%	(1,418)	(3,943)	(3,186)	(1,926)
85%	(1,431)	(3,953)	(3,198)	(1,945)
86%	(1,444)	(3,963)	(3,210)	(1,964)
87%	(1,456)	(3,973)	(3,221)	(1,983)
88%	(1,469)	(3,983)	(3,232)	(2,001)
89%	(1,481)	(3,992)	(3,243)	(2,019)
90%	(1,493)	(4,002)	(3,254)	(2,036)
91%	(1,504)	(4,011)	(3,264)	(2,053)
92%	(1,516)	(4,019)	(3,274)	(2,070)
93%	(1,527)	(4,028)	(3,284)	(2,087)
94%	(1,538)	(4,036)	(3,294)	(2,103)
95%	(1,548)	(4,045)	(3,304)	(2,119)
96%	(1,559)	(4,053)	(3,313)	(2,134)
97%	(1,569)	(4,061)	(3,322)	(2,150)
98%	(1,579)	(4,069)	(3,331)	(2,165)
99%	(1,589)	(4,076)	(3,340)	(2,179)
100%	(1,598)	(4,084)	(3,348)	(2,194)