Note: Where discount factors are required, use only the present value tables (Appendix 1 and 2) REQUIRED Study the information provided below and calculate the following: 1. Payback Period of both projects (expressed in years, months and days). 2. Accounting Rate of Return on average investment of Project A (expressed to two decimal places). 3. Net Present Value of both projects. Your answer must include the calculations of the present values and NPV. 4. Internal Rate of Return of Project B (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. INFORMATION The following information relates to two capital investment projects that are under consideration by ABC Shoes Limited. Initial cost Expected life Scrap value Expected net profit Year 1 Year 2 Year 3 Year 4 Year 5 Project A R600 000 5 years 0 R 80 000 70 000 60 000 50 000 40 000 Project B R600 000 5 years 0 R 70 000 70 000 70 000 70 000 70 000 The company estimates that its cost of capital is 12%. The straight-line method of depreciation is used. Ignore taxes. Number of Periods E E 10 14 15 18 19 30 - 25 Table 1: Present value of R1 OK OF 50 IN NOT 1060 10660 6060 66806006016060 160 0000 0 TO COMO SEPED 9960 1960 10050 TERLO ELLO 91TE0 CEO ATHEO HELEO 00650 00490 196909069 ERTLO SOKED REPLD EOSED SORLD TEBLO ILLO 91150 1958 D Number Periods 2% 296 IN w s 6 T 09:06 09423 09151 088900368 0896 03161 0918 67772 67513 07417 07113 06931 0650 66575 06407 06:44 06006 6591465787 05150 4 09610 09233 08885 08543 08227 0.7921 07629 0.7350 0.7064 06830 0.6587 0.6355 06135 0.5921 05718 05523 03337 05150 04907 0.4823 04096 5 1 2% IN SESEO $1960 90:60 ▬▬▬ZE 609420 055308375 0.7903 0.7462 0.7050 06663 06302 0596305643 0.5346 0.5066 0.4503 04556 04323 04104 03398 03704 03521 0.3349 02621 (1 S60 L 16000 1650 6559 TEO REECO RESEO SLED PSED ISTVO STEKO ATERO REISO OSO SERSO CORPO 15990 Oto SCO TEISO 90150 15169 09615 09524 09434 09215 08535 694 070 06:48 0627405830 05401 05019 046650490409 0176 01506 @1269 050 023403660 024 02336 0163 90914 0348 0664 006 06446 05919 05419 0500204004 04:41 09090606 03129 6305 284 6260 0244 62255 020000198 0144 61 06060 LO 1980 16378767730 66816 66006 65563 0463864156 03677 635626 09613 0800 075 66611 65775 65051 64471 61875 04405 0299702611 0743002046 07436 06419 65553 4310 04173 03624 03452 02745 02394 0.2090 01827 7N 6560 960 H160 ELSED SESSO 00590 6649090890 OFTLO CEPCO SELO 6280 S9ED (5060 $1959 ▬▬▬▬▬▬▬▬▬ 11 (8900 FRETO CREO FACED OSS10 S910 910 POCO FORO SRO NKO SUO SSSECO FOCO OHOOLEKO 19550 999 $10CO SILO NEED RE OSSOO STOOD THOTO COTTO 66519 25910 52910 1919 1950 ISTO SUSTO LA (9119 2 099: APPENDIX 1 1608578 067254 06212 65199 04561 03956 03337 07919 072519 02176 01881 01631 1415 01779 1009 0094000811 007080061500541 12112551 103953 112147 11 1454 (1 159000250000900 9400 000 00500 Resoo 16900 100009960000110 0010 ESTO 6610 octrofoto 19:04 370 yout Feat weet wat nont 29410786978556 22051 439000 3.8077 3.7171 3.6299 48554 47135 45597 445 9% N 10% INICE IN 0.9004 09709 9615 09524 0.9434 IIN MOTO ST9TO SITO 11610 0000 FOCO Truco Loco PCO octrotesco SSRED NEKO FSO CROCO POSSO T90 95190 THEO COCO COSO 0396308041 67224 069665847 658 64751 047890875 6350503175 02875 260 02166 02149 61954 01778 01619 014 014460089 M virov 10660 THIKEL LASEL IMEL SSIST 19HST [HIST 1999 1 M 77906095 04776 05751 2953 02330 01542 01460 01160 00925 00716 005 00471 00175 00504 00:45 00197 00160 0012900105 000 67419 65521 04120 03083 02314 01741 01314 0099400754 00575 00437 00354 00256 00196 60151 00116 06717 04580306602083 01450 00992 00668 0040000318 0.021 0.0154 0010 0.0075 00055 001) 00026 0.001960013 60010 0.000 06000 0.3715 02281 0140700872 00543 00339 00213 00134 00085 0.0054 00035 00022 00014 00009 0.0006 606556465645 61697 6095166515 60303 06133 0000000057 6661106619 00011 0000760004 6000 60001 600010000000000 ON 7% NOT 0900903929 05830 08772 03696 ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ APPENDIX 2 Table 2: Present value of a regular annuity of R1 per period for n periods 6900 20000 600 ROTO ESTTO 9910 910 81610 TIETO FOLTO 99TEO PILEO EXCO PETCO 05090 LO 11150 1000 9950 00110 OCTOESTO 6610 octro Foto ecco cosTO SSTRO PRO 3650 FOOLOOPT O MEVE NET 13334 13000 mat KIEK 08277 06864 05705 04146 03957 0130502765 02317 01945 01635 01377 01161 00981 0089 00705 00596 00506 00451 00567 00313 00144 03195 06750 05537 0456403769 03118 02584 02145 01734 01456 01240 0.1037 00668 00728 6061100514 00433 00465 0050800261 00115 14% VERCO 6100 069 TAEKO 1959 1960 SLO MISO 150 1950 TONET 1992 ▬▬▬▬▬▬▬▬▬▬▬ 111141 GALAPSCOSE ORAL BROM KEBANT 13% 10% 03696 0162108547 PAYASSSS 26241 75721 25000 2 DOSE SSELT 16661 SEETHAL COONE TEISTE NES PRESS PICS 11/65 00059 21949 159 1600 SSCEZ AS92 1807 1567 61411 61257 6111060085 608 6679 00440 01599 014011229 0107900949 00035 0.0736 00649 00352 00:1 IN 9% 10% 12% 10% 092539 09174 09091 09009 0.3929 0.3850 03772 03696 03621 Test DOS 09346 1000 000 000 000 06000 910015100 96100 9:00 M100 LEPO O 10000 10991 SRICT MOZE CINE SEPED LISED 196 112901 2140011 1 61969 1994 SMALL THER SSPLE OGGE6 996 1995 0061219092 609028 $9553 BLOES PRIES ARCOL MITH SUCH FORTE ESPECT ST WHERE CACHE CENE HARGE WHAT NET BRET 59951 9595T REBET 5901 MATINEE MOOCE 2005 ASSES FROST FO 90667 9150C PREY ESTE OVEC PRICE HOOKE PLISS SHOR'S SORE POSLY ASSES 18% 19% 20% 1991S OPFES POT 1999 LIME 57955 56014 54172 52421 50757 4917 4465 469 44659 76.7232 64720 $25305 40021 57564 35824 53893 52064 5833043654 5.6330 4365447452 4544 4456 4545 41604 40356|| 39224]|| 34115 3.703736046 2944373 41416 43072 40776 19544 38D 5660 1622 77061 7415430% 68017 65152 62409 59952 53500 550 SARTS 49464 47716 40065 44506 40 4161 40150 10 9.4713 9856 85302 81109 7.7217 7.3601 70236 67101 64177 61446 post 9 4.6556 44500 440654371 11164656625267605306478694967 Just s 771490 680526495 6805264951 62065 59477 56069 5.4527 52337 50256 43164 46560 99549 93851 85635 43334 79499 75361 74607 63137 64924 61944 3916 36603 3:4506 3.1974 4986449933 46105 4099 106450 99856 996 88527 83575 9045 7450971014 67499 64745 61715 58414 5583153425 51183 49005 47147 45327 T 14% 35460 3.4651 3387233121 32397 31609 31024 3.0373 29745 29137 28550 27982 274322690126336 4355 CHES TROMS 30595 605 99919 LLIN9 19991 SHEET NOT SSZEY 9 2685 SPICY (EY SOSY PIELP GOZY ST GRIFF 59091 46191 MICE DINCE TRETS 1200909099 2019 1794990189 25.7295 18.2559 49350 weet wattresset seaw! Ne moteus 28 Ost vast CETEROS 19 SCOO 08100 SES PLPBS UN 19% 20% 08547 03475 03403 08333 SCS SSASS THEY FORCE 6102||| 58474 | 53755 332402 43750 4.6755 16 147179 145777 125611 11 6525 108576 10 1009 4466 338514 4315578237 73792 6974066099 62451 59545 56665 54053 51624 49977 15 16.3963 149950 13.7535 126593 11696 1032 10.05993749 7556 2014 7.7016 727 6810064574 61250 5817 55339 5.2732 50333 42 S2619 SPEED 0919005 SCS SSL ASLER 91605 POLLY LODGY FELES MENS CONES 200096259 1669 96116 1995 912009105 91216 CONCO ALLPOT THLESS 2591 21 1991 (161659 FOREST 11 1999 SEPER OLDS29ES SPSS SURS CLOS9 01691089 1066 91096 951101 OF 20180456 163514 143775 13.590 124627114099 105946 I 25 220252 195235 174151 156221 14095912.7834 11.6556 106745 98776 90770 $4217 75431 73300 68779 64641 60971 3.7662 3.4669 3.1951 49454 98181 91285 5136 75633 74694 16:41 6621 62595 5928856 53527 51009 450 of BRIGY CHECS 9915S MERS RULE9 09959 (200 SESSON 1609 676 RECTOL BESTIL 960921 PREL SUEST KE 1909 61 596622 LOST O PONERSES COUSS FUCES BEELS 11199 00/1919 BUCE THE BACK RACCOS PREET Street 1999st testct 06 OF PRETTE 595EAR THERE 5666 CONSTSTORE'S SO9 LESTE ESINE CHOCO 166219601221200161666781126CCE PETS 1961 66 05 19959 6606 DERS ESSES GURES 2009 15999 1998 09
Note: Where discount factors are required, use only the present value tables (Appendix 1 and 2) REQUIRED Study the information provided below and calculate the following: 1. Payback Period of both projects (expressed in years, months and days). 2. Accounting Rate of Return on average investment of Project A (expressed to two decimal places). 3. Net Present Value of both projects. Your answer must include the calculations of the present values and NPV. 4. Internal Rate of Return of Project B (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. INFORMATION The following information relates to two capital investment projects that are under consideration by ABC Shoes Limited. Initial cost Expected life Scrap value Expected net profit Year 1 Year 2 Year 3 Year 4 Year 5 Project A R600 000 5 years 0 R 80 000 70 000 60 000 50 000 40 000 Project B R600 000 5 years 0 R 70 000 70 000 70 000 70 000 70 000 The company estimates that its cost of capital is 12%. The straight-line method of depreciation is used. Ignore taxes. Number of Periods E E 10 14 15 18 19 30 - 25 Table 1: Present value of R1 OK OF 50 IN NOT 1060 10660 6060 66806006016060 160 0000 0 TO COMO SEPED 9960 1960 10050 TERLO ELLO 91TE0 CEO ATHEO HELEO 00650 00490 196909069 ERTLO SOKED REPLD EOSED SORLD TEBLO ILLO 91150 1958 D Number Periods 2% 296 IN w s 6 T 09:06 09423 09151 088900368 0896 03161 0918 67772 67513 07417 07113 06931 0650 66575 06407 06:44 06006 6591465787 05150 4 09610 09233 08885 08543 08227 0.7921 07629 0.7350 0.7064 06830 0.6587 0.6355 06135 0.5921 05718 05523 03337 05150 04907 0.4823 04096 5 1 2% IN SESEO $1960 90:60 ▬▬▬ZE 609420 055308375 0.7903 0.7462 0.7050 06663 06302 0596305643 0.5346 0.5066 0.4503 04556 04323 04104 03398 03704 03521 0.3349 02621 (1 S60 L 16000 1650 6559 TEO REECO RESEO SLED PSED ISTVO STEKO ATERO REISO OSO SERSO CORPO 15990 Oto SCO TEISO 90150 15169 09615 09524 09434 09215 08535 694 070 06:48 0627405830 05401 05019 046650490409 0176 01506 @1269 050 023403660 024 02336 0163 90914 0348 0664 006 06446 05919 05419 0500204004 04:41 09090606 03129 6305 284 6260 0244 62255 020000198 0144 61 06060 LO 1980 16378767730 66816 66006 65563 0463864156 03677 635626 09613 0800 075 66611 65775 65051 64471 61875 04405 0299702611 0743002046 07436 06419 65553 4310 04173 03624 03452 02745 02394 0.2090 01827 7N 6560 960 H160 ELSED SESSO 00590 6649090890 OFTLO CEPCO SELO 6280 S9ED (5060 $1959 ▬▬▬▬▬▬▬▬▬ 11 (8900 FRETO CREO FACED OSS10 S910 910 POCO FORO SRO NKO SUO SSSECO FOCO OHOOLEKO 19550 999 $10CO SILO NEED RE OSSOO STOOD THOTO COTTO 66519 25910 52910 1919 1950 ISTO SUSTO LA (9119 2 099: APPENDIX 1 1608578 067254 06212 65199 04561 03956 03337 07919 072519 02176 01881 01631 1415 01779 1009 0094000811 007080061500541 12112551 103953 112147 11 1454 (1 159000250000900 9400 000 00500 Resoo 16900 100009960000110 0010 ESTO 6610 octrofoto 19:04 370 yout Feat weet wat nont 29410786978556 22051 439000 3.8077 3.7171 3.6299 48554 47135 45597 445 9% N 10% INICE IN 0.9004 09709 9615 09524 0.9434 IIN MOTO ST9TO SITO 11610 0000 FOCO Truco Loco PCO octrotesco SSRED NEKO FSO CROCO POSSO T90 95190 THEO COCO COSO 0396308041 67224 069665847 658 64751 047890875 6350503175 02875 260 02166 02149 61954 01778 01619 014 014460089 M virov 10660 THIKEL LASEL IMEL SSIST 19HST [HIST 1999 1 M 77906095 04776 05751 2953 02330 01542 01460 01160 00925 00716 005 00471 00175 00504 00:45 00197 00160 0012900105 000 67419 65521 04120 03083 02314 01741 01314 0099400754 00575 00437 00354 00256 00196 60151 00116 06717 04580306602083 01450 00992 00668 0040000318 0.021 0.0154 0010 0.0075 00055 001) 00026 0.001960013 60010 0.000 06000 0.3715 02281 0140700872 00543 00339 00213 00134 00085 0.0054 00035 00022 00014 00009 0.0006 606556465645 61697 6095166515 60303 06133 0000000057 6661106619 00011 0000760004 6000 60001 600010000000000 ON 7% NOT 0900903929 05830 08772 03696 ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ APPENDIX 2 Table 2: Present value of a regular annuity of R1 per period for n periods 6900 20000 600 ROTO ESTTO 9910 910 81610 TIETO FOLTO 99TEO PILEO EXCO PETCO 05090 LO 11150 1000 9950 00110 OCTOESTO 6610 octro Foto ecco cosTO SSTRO PRO 3650 FOOLOOPT O MEVE NET 13334 13000 mat KIEK 08277 06864 05705 04146 03957 0130502765 02317 01945 01635 01377 01161 00981 0089 00705 00596 00506 00451 00567 00313 00144 03195 06750 05537 0456403769 03118 02584 02145 01734 01456 01240 0.1037 00668 00728 6061100514 00433 00465 0050800261 00115 14% VERCO 6100 069 TAEKO 1959 1960 SLO MISO 150 1950 TONET 1992 ▬▬▬▬▬▬▬▬▬▬▬ 111141 GALAPSCOSE ORAL BROM KEBANT 13% 10% 03696 0162108547 PAYASSSS 26241 75721 25000 2 DOSE SSELT 16661 SEETHAL COONE TEISTE NES PRESS PICS 11/65 00059 21949 159 1600 SSCEZ AS92 1807 1567 61411 61257 6111060085 608 6679 00440 01599 014011229 0107900949 00035 0.0736 00649 00352 00:1 IN 9% 10% 12% 10% 092539 09174 09091 09009 0.3929 0.3850 03772 03696 03621 Test DOS 09346 1000 000 000 000 06000 910015100 96100 9:00 M100 LEPO O 10000 10991 SRICT MOZE CINE SEPED LISED 196 112901 2140011 1 61969 1994 SMALL THER SSPLE OGGE6 996 1995 0061219092 609028 $9553 BLOES PRIES ARCOL MITH SUCH FORTE ESPECT ST WHERE CACHE CENE HARGE WHAT NET BRET 59951 9595T REBET 5901 MATINEE MOOCE 2005 ASSES FROST FO 90667 9150C PREY ESTE OVEC PRICE HOOKE PLISS SHOR'S SORE POSLY ASSES 18% 19% 20% 1991S OPFES POT 1999 LIME 57955 56014 54172 52421 50757 4917 4465 469 44659 76.7232 64720 $25305 40021 57564 35824 53893 52064 5833043654 5.6330 4365447452 4544 4456 4545 41604 40356|| 39224]|| 34115 3.703736046 2944373 41416 43072 40776 19544 38D 5660 1622 77061 7415430% 68017 65152 62409 59952 53500 550 SARTS 49464 47716 40065 44506 40 4161 40150 10 9.4713 9856 85302 81109 7.7217 7.3601 70236 67101 64177 61446 post 9 4.6556 44500 440654371 11164656625267605306478694967 Just s 771490 680526495 6805264951 62065 59477 56069 5.4527 52337 50256 43164 46560 99549 93851 85635 43334 79499 75361 74607 63137 64924 61944 3916 36603 3:4506 3.1974 4986449933 46105 4099 106450 99856 996 88527 83575 9045 7450971014 67499 64745 61715 58414 5583153425 51183 49005 47147 45327 T 14% 35460 3.4651 3387233121 32397 31609 31024 3.0373 29745 29137 28550 27982 274322690126336 4355 CHES TROMS 30595 605 99919 LLIN9 19991 SHEET NOT SSZEY 9 2685 SPICY (EY SOSY PIELP GOZY ST GRIFF 59091 46191 MICE DINCE TRETS 1200909099 2019 1794990189 25.7295 18.2559 49350 weet wattresset seaw! Ne moteus 28 Ost vast CETEROS 19 SCOO 08100 SES PLPBS UN 19% 20% 08547 03475 03403 08333 SCS SSASS THEY FORCE 6102||| 58474 | 53755 332402 43750 4.6755 16 147179 145777 125611 11 6525 108576 10 1009 4466 338514 4315578237 73792 6974066099 62451 59545 56665 54053 51624 49977 15 16.3963 149950 13.7535 126593 11696 1032 10.05993749 7556 2014 7.7016 727 6810064574 61250 5817 55339 5.2732 50333 42 S2619 SPEED 0919005 SCS SSL ASLER 91605 POLLY LODGY FELES MENS CONES 200096259 1669 96116 1995 912009105 91216 CONCO ALLPOT THLESS 2591 21 1991 (161659 FOREST 11 1999 SEPER OLDS29ES SPSS SURS CLOS9 01691089 1066 91096 951101 OF 20180456 163514 143775 13.590 124627114099 105946 I 25 220252 195235 174151 156221 14095912.7834 11.6556 106745 98776 90770 $4217 75431 73300 68779 64641 60971 3.7662 3.4669 3.1951 49454 98181 91285 5136 75633 74694 16:41 6621 62595 5928856 53527 51009 450 of BRIGY CHECS 9915S MERS RULE9 09959 (200 SESSON 1609 676 RECTOL BESTIL 960921 PREL SUEST KE 1909 61 596622 LOST O PONERSES COUSS FUCES BEELS 11199 00/1919 BUCE THE BACK RACCOS PREET Street 1999st testct 06 OF PRETTE 595EAR THERE 5666 CONSTSTORE'S SO9 LESTE ESINE CHOCO 166219601221200161666781126CCE PETS 1961 66 05 19959 6606 DERS ESSES GURES 2009 15999 1998 09
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
Related questions
Concept explainers
Net Present Value
Net present value is the most important concept of finance. It is used to evaluate the investment and financing decisions that involve cash flows occurring over multiple periods. The difference between the present value of cash inflow and cash outflow is termed as net present value (NPV). It is used for capital budgeting and investment planning. It is also used to compare similar investment alternatives.
Investment Decision
The term investment refers to allocating money with the intention of getting positive returns in the future period. For example, an asset would be acquired with the motive of generating income by selling the asset when there is a price increase.
Factors That Complicate Capital Investment Analysis
Capital investment analysis is a way of the budgeting process that companies and the government use to evaluate the profitability of the investment that has been done for the long term. This can include the evaluation of fixed assets such as machinery, equipment, etc.
Capital Budgeting
Capital budgeting is a decision-making process whereby long-term investments is evaluated and selected based on whether such investment is worth pursuing in future or not. It plays an important role in financial decision-making as it impacts the profitability of the business in the long term. The benefits of capital budgeting may be in the form of increased revenue or reduction in cost. The capital budgeting decisions include replacing or rebuilding of the fixed assets, addition of an asset. These long-term investment decisions involve a large number of funds and are irreversible because the market for the second-hand asset may be difficult to find and will have an effect over long-time spam. A right decision can yield favorable returns on the other hand a wrong decision may have an effect on the sustainability of the firm. Capital budgeting helps businesses to understand risks that are involved in undertaking capital investment. It also enables them to choose the option which generates the best return by applying the various capital budgeting techniques.
Topic Video
Question
Transcribed Image Text:Note: Where discount factors are required, use only the present value tables (Appendix 1 and 2)
REQUIRED
Study the information provided below and calculate the following:
1. Payback Period of both projects (expressed in years, months and days).
2. Accounting Rate of Return on average investment of Project A (expressed to two decimal
places).
3. Net Present Value of both projects. Your answer must include the calculations of the
present values and NPV.
4. Internal Rate of Return of Project B (expressed to two decimal places). Your answer must
include two net present value calculations (using consecutive rates/percentages) and
interpolation.
INFORMATION
The following information relates to two capital investment projects that are under consideration by ABC Shoes
Limited.
Initial cost
Expected life
Scrap value
Expected net profit:
Year 1
Year 2
Year 3
Year 4
Year 5
Project A
R600 000
5 years
0
R
80 000
70 000
000 09
50 000
40 000
Project B
R600 000
5 years
0
R
70 000
70 000
70 000
70 000
70 000
The company estimates that its cost of capital is 12%. The straight-line method of depreciation is used.
Ignore taxes.
Number
of
Periods
1
2
3
4
5
6
7
8
09420 0.8850 0.8375 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4303 0,4556 0.4323 0.4104 0.3898 0.3704 0.3521 0.3349 0.2621
09327 0.8706 08131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 05132 0.4317 0.4523 04251 0.3996 03759 0.3538 03332 03139 0.2959 02791 0.2097
09235 08535 07894 07307 06768 06274 05820 0.5403 0.5019 04665 0.4339 04039 03762 0.3506 03269 03050 02848 02660 02487 02336 0.1678
09143 08348 07664 0.7026 06446 05919 05419 05002 0.4604 04241 0.3909 03606 03329 03075 02843 02630 02434 02255 0.2090 0.1938 01342
10 0.9033 0.8203 0.7441 0.6756 0.6139 05584 0.5063 0.4632 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 0.2472 0.2267 0.2060 0.1911 0.1756 0.1615 0.1074
-
|
6
11
13
14
15
05963 08043 07224 06496 05847 05268 04751 04289 03875 03505 031753 0287502607 0.2366 02149 0.1954 01778 01619 01476 01346 00859
1205374 0.7813| 0.7014| 0.6246 0.5563 0.4970|| 0.4440|| 0.3971 03555 0.3186 0.2853 0.2567 0.2307 0.2076 0.1869 0.1635 0.1520 0.1372 0.1240 0.1122 0.0637
0.3787 0.7730 06310 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 02097 0.2575 0.2292 0.2042 0.1821 0.1625 0.1452 0.1299 0.1163 0.1042 0.0935 0.0550
08700 07579 06611 05775 05051 04423 0.3878 03405 02992 02633 0.2420 02046 0.1507 01597 01415 0.1252 01110 00985 00876 00779 00440
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 0.0332
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
085.28 0.7284 06232 05339 04581 0.393603387 02919 0.2519 02176 0.1883 01631 01415 0122901069 0.0930 00811 0.0708 0.0618 0.0541 00281
0.3444 0.7142 0.6050 05134 0.4363 03714 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.0002 0.0693 0.0600 0.05.20 0.0451 0.0225
0.8360 0.7002 05374 0.4936 0.4155 0.3503 0.2959 0.2302 0.2120 0.1799 0.1598 0.13000.1106 0.0946 0.0008 0.0691 0.0592 0.0508 0.0437 0.0376 0.0150
08277 06864 0.5703 04746 03957 03305 0.2765 0.2317 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 00703 0.0596 00506 00431 0.0367 0.0313 00144
08195 0.6730 05537 0.4564 03769 03118 02584 0.2145 0.1784 0.1456 0.1240 0.1037 0.0668 0.0728 0.0611 0.051400433 00365 0.0308 0.0261 0.0115
16
17
18
19
20
25
30
40
50
60
Number
of
Periods
1
2
3
4
5
6
2
8
6
01
Table 1: Present value of R1
16
17
18
19
20
4%
10%
14%
15% 16%
20%
0.9901 09804 09709 09615 0.9524 09434 09346 09259 0.9174 0.9091 0.9009 0.8929 0.5550
0.5550 0.8772
0.8772 0.3696 0.8621 0.8547 05475 0.8403 0.8333 0.0000
0980309612 09426 09246 0.9070 0.8900 0.8734 0.8573 0.8417 0.83264 0.8116 0.7972 0.7831 0.7695 0.7561 0.7432 0.7305 0.7182 0.7062 0.6944 0.6400
09706 09423 09151 08890 08633 08396 08163 0.7938 0.7722 0.7513 0.7312 07118 06931 0.6750 0.6575 0.6407 06244 06086 6.5934 0578705120
09610 09238 0.5885 0.8548 0.8227 0.7921 0.7629 0.7350 0.7064 0.6830 0.6587 0.6355 0.6133 0.5921 05718 0.5523 05337 05158 0.4987 0.4823 0.4096
0.9515 05057 05626 0.8219 0.7835 0.7473 0.7130 0.6306 0.6499 0.6209 0.5935 0.5674 03428 0.5194 0.4972 0.4761 0.4561 0.4371 0.4190 0.4019 0.3277
;
▬▬▬▬ -
▬▬▬▬▬▬▬▬▬▬▬ T
25
30
40
50
60
APPENDIX 1
15
0.7798 0.6095 0.4776 0.3751 02953 0.2330 0.1842 0.1460 0.1160 00923 0.0736 0.0585 0.0471 0.0378 0.0304 0.0245 0.0197 00160 0.0129 0.0105 0.0035
0.7419 05521 04120 03083 02314 0.1741 01314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 00151 0.0116 0.0090 0.0070 0.0054 0.0042 00012
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
0.6060 0.3715 02281 0.1407 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
03504 03043 0.1697 0.0951 0.0535 0.0303 0.0173 00099 0.0057 0.0033 0.0019 0.0011 0.0007 0.0004 0.0002 0.0001 0.0001
APPENDIX 2
Table 2: Present value of a regular annuity of R1 per period for n periods
5%
0.9901 0.9504 0.9709 09615 0.9524 0.9434 09346
1.9704 1.9416 19135 1.8861 18394 1.8334 1.9000
29410 28839 28286 2.7751 27232 26730 2.6243
3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3872
4.8534 4.7135 45797 4.4518 43295 42124 4.1002 3.9927
09259
1.7833
133
25771
3.3121
5.7955 5.6014 5.4172 5.2421 5.0757 49173 47665 46229
5.2064
▬▬
9%
14% 15% 16%
18% 19% 2016
10% 11%
09174 0.9091 09009 0.8929 0.5350 0.3772 0.3696 0.5621 0.8547 03475 0.3403 0.8333
1.7591 1.7355 1.7125 1.6901 1.6681
1.6681 16467
1.6667 1.6257 1.6052
1.6052 1.5852 1.5636 1.5463 15278
25313 2.48569 2.4437 24018 23612 2.3216 22832 22459 2.2096 21743 21399 2.1065
3.2397 3.1699 3.1024 3.0373 2.9745 29137 2.8550 2.7982 2.7432 2.6901 2.6336 2.5887
3.5597 3.7908 3.6959 3.6048 3.5172 34331 3.3522 3.2743 3.1993 3.1272 3.0576 2.9906
4.4859 4.3553 42305 4.1114 3.9975 3.8887 3.7845 3.6847 3.5892 3.4976 3.4098 3.3255
5.0330 4.3684 4.7122 4.5638 4.4226
$7466 5 5.5348 5.3349 51461 4.9676 4.7983 346389 44873 43436 42072 40776 39544 38372
5.9952 57590 55370 53282 51317 49464 47716 46065 4450643038 41633 40310
6.4177 6.1446 5.8892 5.6502 54262 52161 50188 48332 4.6556 4.4941 4.3339 4.1925
11 10.3676 9.78689.25.26 8.7605 8.3064 7.8569 7.4987 7.1390
11.2551105753 99540 9.3851 8.8633 83835 79427 75361
121337 11 3484 10 6350 99856 93936 88527 83577 79038
10.5631
12
13
14
15 13.0651 128493 119379 17 98956 92950 8.7455 82442 7.7862 7.3667 69819 66282 6.3025 60021 57245 54675 5.2293 50061 48023 46106
14
13.0047 12.1062 11 2961
103797
103797 97122 9.107933595 1.0607 7.6061 7.1909 6.9109 64621 6102 55474 55755 53242 5.0916 4.875946755
scresc sa720 6:2305 6.0021 5.7864 55424 53995 SSE4643 4.360440905 3.9224 3.8115 3.7057 3.60-46
7.6517 7.3255 70197 6.7327 64632 62098 5971
$5660 81622 77861 74353 7.1078 63017 6515262469
9.4713 8.9826 8.530 8.1109 7.7217 7.3601 7.0236 6.7101
6.8052 6.4951 62065 5.9371 56869 5.4527 52337 5.0286 48364 46560 4.4865 43271
7.1607 6.8137 6.4924 6.1944 59176 5.6603 5.4206 5.1971 49884 4.7932 4.6105 4.4392
74569 7.1034 6.7499 64235 61218 58424 55831 53423 5.1183 4909547147 45327
147179 135777 12 5611 11 6523 10 8378 10 1059 94466 88514
15.5623 14.2919 13.1661 12.1657 112741 10.4773 9.7632 9.1216
16.3983 14.9920 13.7535 12.6593 11.6896 108276 10.0591 93719
172260 156755 143238 131339 12 0853 11 1581 10 335696036
83126 78237 73792 69740 66039 62651 59542 56685 54053 5.1624 49377 47296
8.5436 8.0216 75488 7.1196 6.7291 63729 6.0472 5.7487 5.4746 5.2223 4.9097 4.7746
8.7556 8.2014 7.7016 7.2497 6.8399 6.4674 6.1290 5.8178 5.5339 5.2732 5.0333 48122
$9501 836497839373658 6938065504 6.1982 58775 5.5845 53162 50700 48435
18.0456 163514148775 13.5903 12.4622 11.4699 10 5940 98181 9.1285 8313679633 7.469470243 66231 6.25935.9288 5.6278 5.3527 5.1009 48696
22.0232 19 5235 174131 15.6221 14.0939 12.7834 11.6536 106745 98226 9.0770 84217 7.8431 7.3300 6.8729 6.4641 6.0971 5.7662 5.4669 5.1951 49476
25.8077 22.3965 19.6004 17.2920 15.3725 13.7645 12.4090 11.2578 10.2737 94269 8.6933 8.0552 74957 70027 6.5660 6.1772 5.8294 55168 5.2347 49789
328347 27.3555 23.1149 19.7928 17.1591 15.0463 133317 11.9246 10.7574 9.7791 89511 8.2438 7.6344 7.1050 6.6418 62335 5.8713 55482 5.2582 49966
39.1961 31.4236 25.7295 21.4822 18 2559 15.7619 13.8007 12 2335 10.9617 9.9148 90417 8.3045 76752 7.1327 6.6605 62463 5.8801 55541 5.2623 49995
44.9550 34.7609 276756 22635 189993 16.1614140392 123766 11.0450 9.9672 90756 $3240 76873 71401 6.6651 62402 38319 55553 5.2630 49999
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
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…
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