M Corporation has provided the following data concerning an investment project that it is considering Initial investment $380,000 $133,000 per year 4 years Annual cash flow Expected life of the project 13% Discount rate Click here to view Exhibit 12B-1 and Exhilbit 128-2, to determine the appropriate discount factor's) using the tables provided The net present value of the project is closest to: ABC Corporation is considering the purchase of a machine that would cost $190,000 and would last for 10 years. At the end of 10 years, the machine would have a salvage value of $16,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $32,000. The company requires a minimum pretax return of 13% on all investment projects. (Ignore income taxes.) Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice $20,568 $(11,648) EXHIBIT 12B-1 Present Value of $1,0+ Periods 4% 5% 6% 7% 0% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0847 0.840 0.833 0826 0.820 0813 0.806 0.800 2 0.925 0.907 0.890 0873 0.857 0842 0.826 0.812 0797 0.783 0769 0.756 0743 0731 0718 0706 0694 0.683 0672 0661 0650 0.640 3 0.889 0.864 0.840 0.816 0794 0772 0751 0.731 0712 0693 0675 0658 0641 0624 0609 0.593 0.579 0564 0.551 0537 0.524 0512 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0552 0534 0.516 0499 0.482 0467 0451 0.437 0.423 0.410 5 0822 0784 0747 0713 0681 0 650 0621 0593 0567 0543 0519 0 497 0476 0456 0437 0419 0402 0386 0370 0355 0341 0.328 6 0790 0.746 0.705 0.666 0630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 7 0760 0711 0665 0623 0.583 0547 0.513 0.482 0452 0425 0400 0.376 0.354 0.333 0.314 0296 0279 0263 0.249 0235 0222 0 210 8 0731 0677 0627 0.582 0.540 0.502 0467 0.434 0.404 0.376 0.351 0.327 0.305 0285 0.266 0.249 0.233 0218 0.204 0191 0179 0168 9 0703 0645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0284 0.263 0243 0.225 0.209 0.194 0180 0167 0155 0144 0134 10 0676 0614 0.558 0508 0463 0422 0.386 0.352 0322 0295 0270 0247 0227 0208 0191 0176 0.162 0149 0137 0126 0116 0107 11 0650 0.585 0527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0178 0162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 12 0625 0557 0497 0444 0.397 0 356 0319 0286 0257 0231 0208 0187 0168 0152 0137 0124 0112 0102 0092 0083 0076 0069 13 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0093 0084 0075 0.068 0061 0.055 14 0.577 0.505 0442 0.388 0.340 0299 0.263 0.232 0.205 0181 0.160 0141 0125 0111 0099 0088 0078 0069 0062 0055 0049 0.044 15 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0183 0160 0140 0123 0108 0.095 0084 0.074 0.065 0057 0051 0045 0040 0035 16 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0188 0163 0.141 0.123 0.107 0093 0.081 0071 0.062 0054 0047 0.042 0.036 0.032 0.028 17 0.513 0436 0.371 0317 0270 0231 0198 0170 0146 0125 0108 0093 0080 0069 0060 0052 0045 0039 0034 0030 0026 0023 18 0.494 0.416 0.350 0.296 0.250 0.212 0180 0.153 0.130 0.111 0.095 0.081 0069 0.059 0051 0.044 0038 0.032 0028 0.024 0021 0.018 19 0475 0.396 0.331 0277 0232 0194 0164 0138 0116 0098 0083 0070 0060 0051 0043 0037 0031 0027 0023 0020 0017 0014 20 0.456 0.377 0.312 0.258 0.215 0.178 0149 0.124 0104 0.087 0073 0.061 0051 0.043 0037 0.031 0026 0022 0.019 0.016 0014 0.012 21 0439 0.359 0.294 0242 0199 0164 0135 0.112 0093 0077 0064 0.053 0044 0.037 0031 0.026 0.022 0.018 0015 0.013 0011 0.009 22 0422 0.342 0278 0226 0184 0150 0123 0101 0083 0068 0056 0046 0038 0032 0026 0022 0018 0015 0013 0011 0009 0007 23 0.406 0.326 0.262 0.211 0.170 0138 0112 0.091 0.074 0.060 0049 0.040 0033 0.027 0022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 24 0.390 0.310 0247 0197 0158 0126 0102 0082 0066 0053 0043 0035 0028 0023 0019 0015 0013 0010 0008 0007 0006 0005 25 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0059 0.047 0.038 0.030 0024 0.020 0.016 0.013 0.010 0.009 0007 0.006 0005 0.004 26 0.361 0.281 0.220 0172 0135 0106 0084 0066 0053 0042 0033 0026 0021 0017 0014 0011 0009 0007 0006 0005 0004 0003 27 0.347 0.268 0.207 0.161 0.125 0.098 0076 0.060 0047 0.037 0029 0023 0018 0.014 0.011 0.009 0.007 0006 0005 0.004 0003 0002 28 0.333 0.255 0196 0150 0.116 0090 0.069 0054 0042 0033 0026 0020 0.016 0.012 0.010 0.008 0.006 0005 0004 0.003 0002 0.002 29 0321 0243 0185 0141 0107 0082 0063 0048 0037 0029 0022 0017 0014 0011 0008 0006 0005 0004 0003 0002 0002 0002 30 0.308 0.231 0174 0131 0.099 0.075 0.057 0.044 0033 0.026 0020 0.015 0.012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 | 1 EXHIBIT 12B-2 Present Value of an Annuity of $1 in Arrears; 5% 7% 25% Periods 4% 6% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 1 0.962 0.952 0943 0.935 0.926 0.917 0.909 0901 0.893 0.885 0877 0.870 0862 0855 0.847 0840 0833 0826 0820 0.813 0806 0800 2 1.886 1859 1.833 1808 1783 1759 1.736 1713 1690 1668 1647 1.626 1605 1585 1566 1547 1.528 1.509 1492 1.474 1457 1.440 3 275 2.723 2.673 2624 2.577 2.531 2487 2444 2.402 2.361 2.322 2.283 2246 2.210 2.174 2140 2.106 2.074 2.042 2.011 1981 1952 4 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 5 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2745 2.689 6 5.242 5076 4917 4.767 4623 4486 4355 4.231 4111 3998 3889 3784 3685 3589 3.498 3.410 3.326 3245 3167 3092 3020 2.951 7 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4712 4564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 8 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5146 4.968 4.799 4639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3619 3.518 3421 3.329 9 7435 7108 6802 6.515 6.247 5995 5759 5537 5.328 5132 4946 4712 4607 4451 4.303 4163 4031 3905 3786 3673 3566 3463 10 8.111 7.722 7.360 7024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 11 8.760 8.306 7.887 7499 7139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4836 4.656 4.486 4.327 4.177 4.035 3.902 3776 3656 12 9.385 8863 8384 7943 7536 7161 6.814 6.492 6194 5918 5660 5,421 5197 4988 4793 4611 4439 4.278 4127 3.985 3851 3725 13 9.986 9.394 8.853 8.358 7.904 7487 7103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 14 10.563 9899 9.295 8745 8.244 7786 7367 6982 6628 6.302 6.002 5.724 5468 5.229 5.008 4.802 4611 4.432 4265 4.108 3962 3.824 15 11118 10.380 9.712 9.108 8.559 8.061 7606 7191 6.8116462 6142 5.847 5.575 5.324 5.092 4.876 4675 4.489 4.315 4153 4001 3.859 16 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4730 4.536 4.357 4.189 4.033 3.887 17 12.166 11274 10.477 9763 9122 8544 8022 7549 7120 6729 6.373 6047 5749 5.475 5.222 4990 4775 4576 4391 4219 4059 3.910 18 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7702 7.250 6.840 6467 6.128 5818 5.534 5.273 5.033 4.812 4.608 4.419 4.243 4.080 3.928 19 13.134 12.085 11158 10.336 9.604 8.950 8.365 7839 7.366 6.938 6.550 6.198 5877 5.584 5.316 5.070 4.843 4.635 4442 4.263 4.097 3.942 20 13.590 12.462 11.470 10.594 9818 9129 8.514 7963 7469 7025 6623 6.259 5929 5628 5.353 5101 4870 4657 4460 4279 4.110 3.954 21 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7.562 7102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 22 14.451 13163 12.042 11.061 10201 9442 8.772 8176 7645 7170 6.743 6.359 6.011 5.696 5410 5149 4.909 4.690 4488 4.302 4.130 3.970 23 14.857 13.489 12.303 11.272 10.371 9580 8883 8266 7718 7230 6792 6.399 6044 5723 5432 5167 4925 4703 4499 4.311 4137 3.976 24 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7.784 7.283 6.835 6.434 6.073 5.746 5.451 5182 4.937 4.713 4.507 4.318 4.143 3.981 25 15.622 14.094 12 783 11.654 10 675 9.823 9077 8422 7843 7330 6873 6464 6.097 5.766 5.467 5195 4948 4.721 4.514 4323 4147 3.985 26 15.983 14.375 13.003 11.826 10.810 9929 9161 8488 7896 7372 6.906 6.491 6.118 5.783 5480 5206 4.956 4.728 4.520 4.328 4151 3.988 27 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7943 7409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 28 16.663 14.898 13.406 12.137 11051 10116 9.307 8.602 7.984 7441 6961 6.534 6152 5.810 5.502 5.223 4970 4739 4.528 4.335 4157 3.992 29 16.984 15.141 13.591 12.278 11158 10.198 9.370 8650 8.022 7470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4.159 3.994 30 17.292 15.372 13765 12.409 11258 10.274 9.427 8694 8.055 7496 7003 6.566 6.177 5.829 5.5175.235 4.979 4.746 4.534 4.339 4.160 3.995 40 19.793 17159 15 046 13.332 11.925 10 757 9779 8951 8.244 7634 7105 6642 6233 5871 5548 5258 4997 4760 4544 4347 4166 3999