Answer Happy

Future value interest factor of an ordinary annuity of $1 per period at i% for n periods, FVIFA(i,n). 3% 5% 6% 7% 9% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 9.369 10.159 11.027 12.488 13.021 10 10.462 10.950 11.464 12.006 12.578 15.937 25.959 14.207 14.972 11 11.567 12.169 12.808 13.486 12 12.683 8% 10% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.110 2.120 2.130 2.140 2.150 2.160 2.170 2.180 2.190 2.200 3 3.030 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.342 3.374 3.407 3.440 3.473 3.506 3.539 3.572 3.606 3.640 4.060 4.122 4.246 4.310 4.375 4.440 4.506 4.573 4.641 4.710 4.779 4.850 4.921 4.993 5.066 5.141 5.215 5.291 5.368 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.228 6.353 6.480 6.610 6.742 6.877 7.014 7.154 7.297 7.442 6.152 6.308 6.468 6.633 6.802 6.975 7.153 7.336 7.523 7.716 7.913 8.115 8.323 8.536 8.754 8.977 9.207 9.442 9.683 9.930 7.214 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 9.783 10.089 10.405 10.730 11.067 11.414 11.772 12.142 12.523 12.916 9.897 8.892 15.327 9.214 11.028 11.436 13.727 14.773 9.549 10.260 11.859 14.240 10.637 12.300 12.757 13.233 15.902 16.499 13.579 14.164 14.776 11.491 15.416 18.285 19.086 16.085 17.519 19.923 11.978 16.786 20.799 10.583 18.420 22.393 19.337 20.304 24.709 21.321 23.521 17.549 15.193 16.722 14.487 23.045 30.404 20.655 24.349 25.733 28.755 18.531 27.200 19.561 21.814 16.645 17.560 29.002 30.850 32.824 34.931 37.180 25.650 27.271 24.133 20.141 21.384 22.713 39.404 42.219 45.244 36.786 34.352 28.029 32.089 29.985 24.523 26.212 22.953 54.841 50.818 37.581 43.672 47.103 40.505 34.883 32.393 30.095 26.019 27.975 58.110 60.965 66.261 47.580 51.660 40.417 31.772 34.405 43.842 37.280 29.361 79.850 72.939 66.649 60.925 55.717 46.672 50.980 42.753 39.190 33.003 35.950 105.93 87.068 96.022 78.979 71.673 65.075 53.739 59.118 44.501 48.884 115.27 128.12 103.74 84.141 93.406 75.836 68.394 55.750 61.725 50.396 45.599 41.301 138.17 154.74 123.41 110.28 98.603 88.212 78.969 70.749 63.440 56.939 46.018 51.159 186.69 146.63 165.42 130.03 115.38 102.44 91.025 80.947 72.052 64.203 57.275 51.160 402.04 471.98 342.60 292.10 181.87 155.62 133.33 114.41 84.701 98.347 966.71 1,181.9 647.44 790.95 530.31 434.75 356.79 241.33 293.20 199.02 1,426.5 1,816.7 2,314.2 2.948.3 1,120.7 881.17 546.68 693.57 431.66 3.134.5 4,163.2 5,529.8 7.343.9 1,779.1 2.360.8 1,342.0 45,497 1.013.7 767.09 31,515 21,813 15,090 10.436 2.400.0 3.459.5 4,994.5 7.217.7 13 13.809 32.150 39.581 48.497 59.196 72.035 87.442 15 16.097 13.181 13.816 15.784 18.977 17.888 13.412 14.192 16.870 15.026 15.917 20.141 21.495 18.882 17.713 15.618 16.627 14.680 24.215 22.550 21.015 15.974 18.292 19.599 17.086 27.152 25.129 23.276 21.579 20.024 18.599 17.293 27.888 30.324 25.673 23.657 20.157 21.825 17.258 18.639 30.840 28.213 25.840 23.698 18.430 21.762 20.012 30.906 33.999 28.132 25.645 23.414 21.412 19.615 37.379 33.760 30.539 27.671 25.117 22.841 19 20.811 40.995 33.066 26.870 29.778 24.297 20 22.019 47.727 41.646 36.459 32.030 25 28.243 47.575 56.085 40.568 30 34.785 49.994 35 41.660 60.402 40 48.886 84.579 50 64.463 40.545 36.974 40 33.750 36 37.450 41.446 45.762 73.106 36.786 212.79 249.21 63.249 113.28 94.461 136.31 164.49 66.439 215.71 172.32 138.24 341.59 271.02 60.462 90.320 73.652 95.026 581.83 442.59 259.06 75.401 154.76 120.80 199.64 573.77 406.53 290.34 209.35 1.163.9 1.668.8 112.80 152.67 Period 1 5 7 8 8.583 54.865 79.058 111.43 337.88 815.08
Future value interest factor of $1 per period at i% for n periods, FVIF(i,n). Period 1% 5% 8% 9% 1 1.010 12% 2 1.020 1.020 1.040 1.061 1.082 1.090 1.188 1.295 3 1.030 1.260 4 1.041 5 1.051 3% 4% 6% 7% 1.030 1.040 1.050 1.060 1.070 1.061 1.082 1.103 1.124 1.145 1.093 1.125 1.158 1.191 1.225 1.126 1.170 1.216 1.262 1.311 1.360 1.412 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 6 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.677 7 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.714 1.828 8 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.851 1.993 9 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.999 2.172 10 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 11 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 12 1.127 1.268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 1.886 2.133 2.410 2.720 3.066 2.261 2.579 1.980 2.079 2.397 2.759 2.540 2.693 2.854 3.026 3.207 2.937 3.342 3.172 3.642 3.426 3.970 4.595 2.952 3.159 3.700 4.328 5.054 4.717 5.560 6.116 1.294 1.469 1.665 14 1.149 1.319 1.513 1.732 1.801 1.346 1.558 15 1.161 2.183 1.873 16 1.173 1.373 1.605 17 1.184 1.400 1.653 1.948 2.292 3.380 3.996 2.026 1.702 2.407 18 1.196 1.428 4.316 3.617 2.107 2.527 19 1.208 1.754 1.457 3.870 4.661 2.653 1.486, 1.806 2.191 20 1.220 5.427 6.848 25 1.282 3.386 2.094 2.666 1.641 7.612 10.063 5.743 4.322 30 1.348 2.427 3.243 1.811 10.677 7.686 5.516 35 1.417 2.000 2.814 3.946 14.974 7.040 10.286 3.262 4.801 40 1.489 2.208 29.457 18.420 50 1.645 2.692 4.384 7.107 11.467 5.142 6.727 5.604 8.623 10.835 22.892 17.449 13.268 38.575 28.102 14.785 20.414 65.001 45.259 21.725 31.409 184.565 117.391 74.358 46.902 2% 1.080 1.166 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 2.853 3.138 3.452 3.797 11% 1.110 1.232 1.120 1.254 2.839 3.152 3.498 1.368 1.405 1.518 1.574 1.685 1.762 1.870 1.974 2.076 2.211 2.476 2.773 2.305 2.558 3.106 3.479 3.896 4.363 4.310 4.887 3.883 4.785 5.474 5.311 5.895 6.544 7.263 9.646 8.062 17.000 13.585 29.960 6.130 6.866 7.690 8.613 13% 1.130 1.277 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.335 4.818 3.395 3.836 5.492 4.898 5.535 6.261 6.254 7.138 1.630 1.842 2.082 2.353 2.658 3.004 7.067 7.986 9.024 10.197 11.523 39,116 52.800 72.069 132.782 93.051 289.002 450.736 8.137 9.276 10.575 12.056 141 15% 1.150 1.323 1.521 1.749 2011 2.313 2.660 3.059 3.518 4.046 4.652 5.350 6.153 7.076 8.137 9.358 10.761 12.375 14.232 13.743 16.367 26.462 50.950 32.919 66.212 98.100 133.176 267.864 188.884 700.233 1.083.657 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 17% 1.170 1.369 1.602 1.874 2.192 2.565 3.001 3.511 4.108 5.117 5.936 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 19% 1.190 1.416 1.685 2.005 2.386 20% 1.200 1.440 1.728 2.074 2.488 2.840 3.379 4.021 4.785 5.234 5.695 6.192 6.176 4.807 5.624 6.580 7.699 9.007 10.539 12.330 14.426 6.777 8.064 9.596 11.420 7.288 8.599 10.147 11.974 14.129 6.886 7.988 9.266 10.748 12.468 7.430 8.916 10.699 12.839 15.407 13.590 16.172 19.244 18.488 16.672 22.186 14.463 16.879 19.673 22.901 26.623 16.777 19.748 23.214 27.252 31.948 32.429 38.338 27.393 23.106 19.461 77.388 95.396 50.658 62.669 40.874 237.376 184.675 143.371 85.850 111.065 590.668 440.701 327.997 243.503 180.314 750.378 1,051.668 1,469.772 533.869 378.721 1,670.704 2,566.215 3,927.357 5,988.914 9.100.438 2.986 3.583 4.300 5.160
Mr. Kevin Dates is the owner of an expanding business operating in bakery industry located in Bridgetown, Barbados. Over the last few years business has been great. However, he believes it is time to grow and be more profitable. As such Mr. Dates has decided to invest in a new sophisticated convection oven that would boost production levels by 400% in a more efficient manner. As an astute assistant manager to Mr. Dates have asked you to analyze the following variables to assist in informing the correct decision: 1. Mr. Dates is considering investing in one of two convection ovens - Type ABC and Type XYZ; 2. The initial investment costs of ovens Type ABC and Type XYZ are both $115,000 each; 3. Over a 5 year period directly following the investment, projected revenue attributed to the Type ABC oven is $72,000 a year. While projected expenditure is $42,000 a year for the Type ABC oven: 4. This is not the same for the Type XYZ oven investment, which is projected to only have revenue and expenditure of $300,000 and $130,000 respectively in the fifth year; 5. The situation that surrounds the current oven (old) is that if it sold/traded-in under the Type ABC oven investment arrangement then Mr. Dates will receive a $14.000 profit a year on such a sale over a 5 year period: 6. Conversely with the Type XYZ oven investment the current oven if sold/traded-in will yield a year 5: $35,000 profit at the end of 7. Assume no tax is applied to the business; 8. The cost of capital for each investment is 10%.
"resent value interest factor of an (ordinary) annuity of $1 per period at i% for n periods, PVIFA(i,n). eriod 3% 4% 5% 8% 9% 14% 15% 16% 17% 18% 19% 20% 0.862 0.855 0.847 0.840 0.833 1.605 1.585 1.566 1.547 1.528 2.246 2.210 2.174 2.140 2.106 10% 11% 12% 13% 0.917 0.909 0.901 0.893 0.885 0.877 0.870 1.759 1.736 1.713 1.690 1.668 1.647 1.626 2.531 2.487 2.444 2.402 2.36.1 2.322 2.283 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4.836 4.656 4.486 4.327 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439 7.487 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 7.786 -7.367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 8.061 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 7.824 8.313 6.974 7.379 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 8.544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 8.201 6.128 7.702 7.250 6.840 6.467 5.818 5.534 5.273 5.033 4.812 8.365 6.198 5.877 5.584 5.316 5.070 4.843 7.839 7.366 6.938 6.550 8.514 7.963 6.623 7.469 7.025 6.259 5.929 5.628 5.353 5.101 4.870 7.843 7.330 9.077 8.422 6.873 6.464 6.097 5.766 5.467 5.195 4.948 10.274 8.694 9.427 8.055 7.496 7.003 6.566 6.177 5.829 5.517 5.235 4.979 10.567 9.644 8.855 8.176 7.586 7.070 6.617 6.215 5.858 5.539 5.251 4.992 7.105 6.642 6.233 5.871 5.548 5.258 4.997 8.244 7.634 10.757 9.779 8.951 5.554 5.262 4.999 10.962 9.915 9.042 8.304 7.675 7.133 6.661 6.246 5.880 8.756 8.950 9.129 9.823 6% 0.971 1.913 0.962 1.886 0.952 1.859 0.943 1.833 0.926 1.783 2.829 2.775 2.723 2.673 3.902 2.577 3.717 3.630 3.546 3.465 3.387 3.312 4.853 4.580 4.452 5.795 5.417 7.652 7.325 11 10.368 12 11.255 10.575 14 13.004 12.106 15 13.865 4.329 4.212 4.100 3.993 5.601 5.242 5.076 4.917 4.767 4.623 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 7.020 6.733 6.463 6.210 5.971 5.747 8.162 7.786 7.435 7.108 6.802 6.515 6.247 8.983 8.530 8.111 7.722 7.360 7.024 6.710 9.787 9.253 8.760 8.306 7.887 7.499 7.139 9.385 8.863 8.384 7.943 7.536 10.635 9.986 9.394 8.853 8.358 7.904 11.296 10.563 9.899 9.295 8.745 8.244 11.938 11.118 10.380 9.712 9.108 8.559 12.561 11.652 10.838 16 14.718 13.578 10.106 9.447 8.851 10.477 11.274 14.292 13.166 12.166 14.992 13.754 12.659 15.678 19 17.226 14.324 13.134 12.085 20 18.046 16.351 14.877 12.462 13.590 19.523 22.396 30 25.808 35 29.409 24.999 40 32.835 50 39.196 9.763 9.122 11.690 10.828 10.059 18 16.398 9.372 11.158 10.336 9.604 10.594 9.818 10.675 11.654 25 22.023 12.783 14.094 17.413 15.622 15.372 19.600 17.292 11.258 12.409 13.765 14.498 16.374 11.655 12.948 13.332 15.046 11.925 21.487 18.665 17.159 19.793 21.482 18.256 27.355 23.115 31.424 25.730 15.762 13.801 12.233 1 NATOON 0000 2 1.970 3 44 6 0.990 0.980 1.942 2.884 3.808 7 7% 0.935 1.808 2.624
Present value interest factor of $1 per period at i% for n periods, PVIF(i,n). Period 3% 20% -0.905 4% 5% 6% 7% 8% 9% 10% 11% 0.990 12% 0.980 13% 14% 15% 0.971 16% 0.962 0.952 17% 18% 19% 0.943 0.935 0.926 0.917 0.909 0.901 0.980 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.961 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.766 0.837 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.284 0.333 0.308 0.263 0.243 0.225 0.209 0.194 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.352 0.322 0.475 0.650 0.527 0.429 0.388 0.350 0.317 0.287 0.261 0.804 0.722 0.896 0.585 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.319 0.286 0.356 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.257 0.444 0.397 0.887 0.701 0.788 0.625 0.557 0.497 0.258 0.229 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.368 0.326 0.290 0.204 0.415 0.469 0.879 0.773 0.681 0.530 0.601 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.299 0.263 0.232 0.205 0.181 0.388 0.340 0.442 0.870 0.661 0.577 0.758 0.160 0.209 0.183 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.315 0.275 0.239 0.861 0.743 0.642 0.555 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.188 0.163 0.292 0.252 0.218 0.534 0.060 0.052 0.045 0.853 0.728 0.623 0.125 0.108 0.093 0.080 0.069 0.170 0.146 0.198 0.513 0.605 +0.714 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.153 0.130 0.180 0.494 0.587 0.700 0.116 0.083 0.070 0.138 0.098 0.051 0.043 0.037 0.031 0.026 0.475 0.073 0.061 0.124 0.104 0.087 0.149 0.178 0.047 0.038 0.030 0.024 0.020 0.016 0.013 0.010 0.116 0.092 0.074 0.059 0.020 0.015 0.012 0.009 0.007 0.005 0.004 0.026 0.044 0.033 0.075 0.057 0.014 0.010 0.008 0.006 0.004 0.003 0.002 0.002 0.049 0.036 0.026 0.019 0.068 0.003 0.002 0.001 0.001 0.001 0.011 0.008 0.005 0.004 0.032 0.022 0.015 0.046 0.001 0.000 0.000 0.000 0.000 0.001 0.001 0.005 0.003 0.002 0.013 0.009 0.505 0.481 0.417 0.362 0.458 0.394 0.339 0.436 0.371 0.270 0.231 0.844 0.836 0.416 0.350 0.250 0.212 0.194 0.232 0.331 0.570 0.060 0.051 0.043 0.037 0.031 0.164 0.686 0.396 0.312 0.377 0.456 0.215 0.554 0.673 0.146 0.478 0.233 0.375 0.099 0.174 0.308 0.412 0.253 0.355 0.181 0.130 0.142 0.208 0.307 0.097 0.021 0.034 0.054 0.087 0.141 0.228 11 NEAEGFO@O-NMIDON09228545 3 7 16 18 30 35 0.828 0.820 0.780 0.742 0.706 0.672 0.608 0.610 0.552 0.500 0.453 0.372 0.295 0.231 0.317 0.296 0.277 0.258 0.184 0.131 0.094 0.067