Autumn Music is considering investing $800,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $110,000 per year for the next nine years Assuming that Autumn Music uses an 8% hurdle rate, what is the net present value (NPV) of the studio investment? Is this a favorable investment? (Click the icon to view the present value of an annuity table.) (Click the icon to view the present value table) (Click the icon to view the future value of an annuity table.) (Click the icon to view the future value table.) (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative nel present value) The net present value of the studio investments Reference Periods Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 1.970 1.942 1.913 | 1.886 1.859 1.833 1.783 1.736 1.6901.647 1.6051.566 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2402 2.322 2.246 2.174 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.037 2.914 2.798 2.690 4.853 4.713 4.580 4.452 4.329 4.212 | 3.993 3.605 3.433 3.274 3.127 5.795 5.601 5.417 5.242 5.0764.917 4.623 4.355 4.111 3.8893.685 3.498 6.728 6.472 6.230 6.002 5.786 5.5825.206 4.868 4.564 4.288 4.039 3.812 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 8.566 8.162 7.786 7.435 7.108 6.8026.247 5.759 5.328 | 4.9464.607 4.303 9.471 8.9838.530 8.111 7.722 7.360 6.710 6.145 5.6505.216 4.833 4.494 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 11.255 10.575 9.954 9.385 8.8638.384 7.536 6.814 6.194 5.660 5.1974.793 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.3424.910 13.004 12.106 11.296 | 10.563 9.899 9.2958.244 7.367 6.628 6.002 5.468 5.008 13.865 12.849 11.938 11.11810.380 9.7128.559 7.606 6.811 6.142 5.575 5.092 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.4696.623 5.9295.353 22.023 19.523 17.413 | 15.622 14.094 12.783 10.675 9.077 7.8436.873 6.097 5.467 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 6.1775.517 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.1056.233 5.548 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.997 40 Print Done 0 Reference Future Value of Annuity of $1 Periods 3% 1.000 1% 1.000 2010 3.030 4.060 5.101 6.152 7.214 8.286 9389 10.462 11 567 12 603 13.809 14.947 16.097 22.019 28 243 34.785 48.886 2% 1.000 2020 3.060 4.122 5.204 6.308 7434 8.583 9.755 10.950 2030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 26.870 36.459 47.575 75.401 4% 1.000 2.040 3.122 4246 5.416 6.633 7.898 9.214 10.583 12.006 13.488 15.028 16.627 18.292 20.024 29.778 41.646 56.085 95.026 5% 1.000 2.050 3.153 4.310 5.526 6.802 8.142 9.549 11.027 12.578 14.207 15.917 17.713 19.599 21.579 33.066 47.727 66.439 120.800 6% 8% 1.000 11.000 2.060 2080 3.184 3.246 4.375 4.506 5.637 5.867 6.975 7.338 8.394 8.923 9897 10.637 11.491 12.488 13.181 14.487 14.972 16 845 16.870 18.977 18.882 21 405 21.015 24 215 23.276 27.152 36.786 45.762 54.865 73.106 79.058 113283 154.762259.057 10% 12% 1.000 1.000 2.100 2.120 3.310 3.374 4.641 4.779 6.105 6.353 7.716 8.115 9.487 10,089 11.436 12.300 13.579 14.776 15.937 17.549 18.531 20,655 21.384 24.133 24.523 28.029 27.975 32.393 31.772 37.280 57.275 72.052 98.347 133.334 164.494 241,333 442.593767.091 14% 16% 1.000 1.000 2.140 2. 160 3.440 3.506 4.921 5.066 6.610 6.877 8535 8.977 10.730 11.414 13.233 14 240 16.085 17 519 19.337 21.321 23.045 25.733 27 271 30.850 32.089 36.788 37.581 43 672 43.842 51.660 91.025 115.380 181.871 249.214 356.787 530.312 1,342 0252,360.757 18% 1.000 2.180 3.572 5.215 7.154 9.442 12.142 15.327 19.086 23.521 28.755 34.931 42.219 50.818 60.965 146.628 342.603 790.948 4,163 213 20% 1.000 2 200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39,581 48.497 59.196 72.035 186.688 471.981 1,181.882 7,343.858 12.169 13.412 14.680 15.974 17.293 24.297 32.030 40.568 60.402 Print Done i Reference Periods 1% 2% 3% 4% 0.990 0.980 0.971 0.962 0.9800.961 0.943 0.925 0.971 0.9420.915 0.889 0.961 0.924 0.888 0.855 0.951 0.906 0.863 0.822 0.942 0.888 0.837 0.790 0.933 0.871 0.813 0.760 0.923 0.853 0.789 0.731 0.914 0.837 0.766 0.703 0.905 0.820 0.744 | 0.676 0.896 0.804 0.722 0.650 0.887 0.788 0.701 0.625 0.879 0.773 0.681 0.601 0.870 0.758 0.661 0.577 0.743 0.642 0.555 0.820 0.673 0.554 0.456 0.780 0.610 0.478 0.375 0.742 0.552 0.412 0.308 0.672 0.453 0.307 0.208 Present Value of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 0.907 0.890 0.857 0.826 0.864 0.840 | 0.794 0.751 0.823 0.792 | 0.735 0.683 0.784 0.747 0.681 0.621 0.746 0.705 0.630 0.564 0.711 0.665 0.583 0.513 0.677 0.627 0.540 0.467 0.6450.592 0.500 0.424 0.614 0.558 0.463 0.386 0.585 0.527 0.429 0.350 0.557 0.497 0.397 0.319 0.530 0.469 0.368 0.290 0.505 0.442 0.340 0.263 0.481 0.315 0.239 0.377 0.312 0.215 0.149 0.295 0.233 0.146 0.092 0.231 0.174 0.099 0.057 0.142 0.097 0.046 0.022 12% 14% 16% 0.893 0.877 0.862 0.797 0.769 0.743 0.712 0.675 0.641 0.636 0.592 0.552 0.567 0.519 0.476 0.507 0.4560.410 0.452 0.400 0.354 0.4040.351 0.305 0.361 | 0.308 0.263 0.322 | 0.270 0.227 0.287 0.237 0.195 0.257 0.208 0.168 0.229 0.182 0.145 0.205 0.160 0.125 0.183 0.1400.108 0.104 0.073 0.051 0.0590.038 0.024 0.033 0.0200.012 0.0110.005 0.003 18% 20% 0.847 0.833 0.7180.694 0.609 0.579 0.516 0.482 0.437 0.402 0.370 0.335 0.314 0.279 0.266 0.233 0.225 0.194 0.191 0.162 0.162 0.135 0.137 0.112 0.116 0.093 0.099 0.078 0.084 0.065 0.037 0.026 0.0160.010 0.007 0.004 0.001 0.001 20 25 40 Print Done] i Reference Future Value of $1 Periods 1.010 1.020 1.030 1.041 1.051 3% 1.030 1.061 1.093 1.126 1.159 10% 1.100 1.210 1.331 1.464 1.611 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1 811 2.100 1,020 1.040 1.061 1.082 1.104 1.126 1.149 1.172 1.195 1.219 8% 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1.489 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 5% 1.050 1.103 1.158 1.216 1276 1.340 1.407 1.477 1551 1.629 1.710 1.796 1.886 1.980 2.079 2653 3.386 4.322 7.040 1.194 1.230 1.267 1.305 1.344 1,384 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 6% 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1.689 1.791 1.898 2.012 2.133 2.261 2.397 3.207 4.292 5.743 10.286 12% 1.120 1254 1.405 1.574 1.762 1.974 2 211 2476 2.773 3106 3.479 3.898 4363 4.887 5.474 1.772 1.949 2.144 2.358 2594 2853 3.138 3.452 3.797 4.177 6.727 10.835 17.449 45.259 1.243 1.268 1.294 1.319 1.346 1.486 1.641 1.811 2.208 18% 1.180 1 392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6.178 7.288 8.599 | 10.147 11.974 27393 62.669 143.371 750.378 2.195 2502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 2.332 2.518 2.720 2.937 3.172 4.661 6.B4B 10.063 21.725 20% 1 200 1.440 1.728 2.074 2.488 2986 3583 4.300 5.160 6.192 7430 8.916 10.699 12.839 15.407 38.338 95.396 237.376 1,469.772 2.436 2.826 3.278 3803 4.411 5.117 5.936 6.886 7.988 9.266 19.461 40.874 85.850 378.721 9.646 17.000 29.960 9 3.051 | Print Done