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- Crab Company is considering a project with an initial investment of $600,000 that is expected to produce cash inflows of $129,500 for ten years. Crab's required rate of return is 16%. (Click on the icon to view Present Value of $1 table.) E (Click on the icon to view Present Value of Ordinary Annuity of $1 table.) 14. What is the NPV of the project? 15. What is the IRR of the project? 16. Is this an acceptable project for Crab? 14. What is the NPV of the project? (Enter the factor amount to three decimal places, X.XXX. Round the present value of the annuity to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) Net Cash Annuity PV Factor Present (i-16%, n=10) Value Years Inflow 1- 10 Present value of annuity Investment Net present valueEACTIVITY # 1 Find the future value and present value using the ordinary annuity and. No. Principal Rate Mode of Payment Term 3 years 5 years 10 years 12 years 2% P40,000 P100,000 P340,000 P1,240,000 Annually Quarterly Monthly Semiannually 4% 6% 9% 1234ests - X þver Reference Reference Present Value of Ordinary Annuity of $1 Present Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 0.905 0.820 | 0.744 0.676 0.614 | 0.558 0.508 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% us Period 1 Period 2 Period 3 Period 4 Period 5 0.935 0.952 0.943 0.935 1.859 1.833 1.808 0.926 0.917 0.909 0.893 0.877 0.870 1.783 1.759 1.736 2.577 2.531 2.487 0.990 0.990 0.980 0.971 0.962 | 0.952 0.980 0.961 0.943 0.925 0.907 0.971 0.942 0.915 0.889 0.864 0.961 0.924 0.888 0.855 0.823 0.951 0.906 0.863 0.822 0.784 0.943 0.917 0.909 0.893 | 0.877 0.842 0.826 0.797 0.769 0.772 0.751 0.712 0.675 0.658 | 0.641 0.708 0.683 0.636 | 0.592 0.572 0.552 0.516 0.482 0.650 0.621 0.567 0.980 0.971 0.962 0.862 0.847 0.833 0.926 0.862 0.847 0.833 1.566 | 1.528 2.174 2.106 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798…
- Tait is entering high school and is determined to save money for college. Tait feels he can save $2,500 each year for the next four years from his part-time job. If Tait is able to invest at 6%, how much will he have when he starts college? (Click the icon to view Present Value of $1 table.) E (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) E (Click the icon to view Future Value of Ordinary Annuity of $1 table.) - X Reference (Round your answer to the nearest dollar.) Reference When Tait starts college he will have Present Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Future Value of $1 0.990 0.980 0.971 0.962 0.952 0.943 0.980 0.961 0.943 0.925 0.907 0.971 0.942 0.915 0.889 0.864 0.840 0.961 0.924 0.888 0.855 0.823 0.792 0.951 0.906 0.863 0.822 0.784 0.747 0.917 0.909 0.893 | 0.877 0.870 0.862 0.847 0.833 0.826 0.797 0.769 0.756 0.743…Present value of an Annuity of $1 in Arrears Periods 4% 6% 8% 10% 12% 14% 1 0.962 0.943 0.926 0.909 0.893 0.877 2 1.886 1.833 1.783 1.736 1.690 1.647 3 2.775 2.673 2.577 2.487 2.402 2.322 4 3.630 3.465 3.312 3.170 3.037 2.914 5 4.452 4.212 3.993 3.791 3.605 3.433 6 5.242 4.917 4.623 4.355 4.111 3.889 7 6.002 5.582 5.206 4.868 4.564 4.288 8 6.733 6.210 5.747 5.335 4.968 4.639 9 7.435 6.802 6.247 5.759 5.328 4.946 10 8.111 7.360 6.710 6.145 5.650 5.216 Lucas Company is considering a project with an initial investment of $530,250 in new equipment that will yield annual net cash flows of $95,000, and will be depreciated at $75,750 per year over its seven year life. What is the internal rate of return? a.6% b.14% c.10% d.12% e.8%Future value interest factor of an ordinary annuity of $1 per period at i% for n periods, FVIFA(i,n). 3.5% 4.0% 4.5% 8.0% 8.5% 9.5% Period 0.5% 1.0% 1.0000 1.0000 2.0050 2.0100 1 1.5% 2.0% 2.5% 1.0000 1.0000 1.0000 20150 2.0200 2.0250 2 3.2781 3 1.0000 2.0950 3.2940 4.6070 6.0446 4 7 8.1420 9.5491 8 9 10 16.3856 16 8699 18.5312 21.3843 24.5227 27.9750 31.7725 35.9497 26.9964 28.2129 30.8402 40.5447 45.5992 51.1591 57.2750 64.0025 71.4027 58.1767 76.7898 824164 3.0% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 9.0% 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 2.0300 2.0350 2.0400 2.0450 2.0500 2.0550 2.0600 2.0650 2.0700 2.0750 2.0800 2.0850 2.0900 3.0150 3.0301 3.0452 3.0604 3.0756 3.0909 3.1062 3.1216 3.1370 3.1525 3.1680 3.1836 3.1992 3.2149 3.2306 3.2464 4.0301 4.0604 3.2622 4.0909 4.1216 4.1525 4.1836 4.2149 4.2465 4.2782 4.3101 4.3423 4.3746 4.4072 4.4399 4.4729 4.5061 4.5395 5 5.0503 4.5731 5.1010 5.1523 5.2040 5.2563 5.3091 5.3625 5.4163 5.4707…
- Annuity Years Interest Rate Compounding Future Value of Annuity 3 12.00% Weekly $85,000.00 a. $453.29 b. $468.69 O c. $484.42 O d. $451.51 hpComplete the ordinary annuity as an annuity due (future value) for the following: (Please use the following provided Table.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount of Payment payable Years Interest rate Annuity due payment 4,800 Annually 9. 3 % acer %24K Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round to the nearest cent. $225 is invested quarterly for 7 years at 7% compounded quarterly OA. $14,041.15 OB. $8,741.14 OC. $8,041.02 OD. $8,441.04
- What is the present value of an ordinary annuity with annual payments of $660 at 9% annual interest for 25 years? Click the icon to view the table. The present value of an ordinary annuity is S (Round to the nearest cent as needed.)Find the future value and total interest of the annuity. Periodic Annual interest payment $2,400 Annuity type Payment paid Quarterly Ordinary annuity Click the icon to view the Future Value of $1.00 Ordinary Annuity table. The future value of the ordinary annuity is $ (Round to the nearest cent as needed.) The total interest of the annuity is $ (Round to the nearest cent as needed.) rate 10% Years 5 ...Future value interest factor of an ordinary annuity of $1 per period at i% for n periods, FVIFA(i,n). 2.5% 6.0% 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 2.0250 2.0050 1.0% 1.5% 2.0% 1.0000 1.0000 1.0000 2.0100 2.0150 2.0200 3.0301 3.0452 3.0604 4.0604 4.0909 4.1216 2.0300 2.0350 2.0400 3.1216 3.0150 3.0909 3.1062 2.0450 3.1370 4.2782 4.0301 4.1836 4.2149 4.2465 3.0756 4.1525 5.2563 6.3877 5.0503 5.3091 5.3625 5.4163 5.4707 6.7169 6.0755 6.4684 6.5502 6.6330 7.1059 7.5474 7.6625 7.7794 5.1010 5.1523 5.2040 6.1520 6.2296 6.3081 7.2135 7.3230 7.4343 8.2857 8.4328 8.5830 9.1821 9.3685 9.5593 9.7546 10.2280 10.4622 10.7027 10.9497 8.1414 8.7361 8.8923 10.1591 1.0000 2.0500 2.0550 2.0600 3.1525 3.1680 3.1836 4.3101 4.3423 4.3746 5.5256 5.5811 5.6371 6.8019 6.8881 6.9753 7.8983 8.0192 8.1420 8.2669 8.3938 9.0517 9.2142 9.3800 9.5491 9.7216 9.8975 9.9545 10.3685 10.5828 10.8021 11.0266 11.2563 11.4913 11.2034 11.4639 11.7314 12.0061 12.2882 12.5779 12.8754 13.1808 11.2792…