ry;e

UNAM
ulltvtIstTY 0F ]ttiltatt

FACULTY Economic and Management Sciences

DEPARTMENT School of Accounting

SUBJECT Financial Management B

SUBJECT AMF 3872

CODE

DATE January 2020

DURATION 3 Hours MARKS 100

SI]MMER TERM EXAMINATION

Examiners: Mr J.N. Ndjuluwa, Mr B. Kerima, Mr E. Odero

Moderator: Mr L. Steyn (North West University)

This question paper consists of 4 pages excluding the front cover

Instructions:
1. There are five questions in this paper.
2. Answer all questions.
3. Read instructions carefully before attempting to answer the questions.
4. Answers in pencil will not be marked.
5. The use of correctional fluid is not allowed.
6. Only blue and black pen are allowed.
7. The use of financial calculator is allowed.
8. Use of PV and FV tables attached hereto is nermissible.

UNIVERSITY OF NAMIBIA BXAMINATIONS

Question 1 36 minutes 20 marks
Swakop Hotel made a list of various independent projects it wants to launch with a fixed capital
budget of N$5.5 million. Management established that any unused portion of the fixed capital
budget will earn less than the cost of capital of 12%. A summary of independent projects are
shown in the table below.

Proiect lnvestment IRR PV of inflows at 12%

A N$4 900 000 17% N$5 600 000
B 900 000 19 1 250 000
C 2 100 000 18 2 250 000
D 1 600 000 15 1 800 000
E 750 000 20 920 000
F 2 600 000 19 3 100 000
G 1 250 000 21 1 310 000

REQUIRED: MARKS

Select the best group of projects based on the internal rate of return
1.1 b
(lRR) of the various projects.

Select the best group of projects based on the net present value
1.2 10
(NPV) of the various projects.

Are the projects selected in 1 .1 and 1 .2 above the same? Why or

1.3 2
why not?

1.4 Which projects should Swakop Hotel implement? 2

TOTAL MARKS 20

Question 2 54 minutes 30 marks

Dynamo Ltd is considering introducing a new product with the following possible outcomes:

Worst case Base case Best case

Sellinq price per unit (N$) 20 25 30
Sales volume (units) 400 000 600 000 800 000
Variable cost per unit (N$) 15 13 11
Fixed operating costs per year 3 500 000 3 200 000 3 000 000
(N$)
Economic life 3 4 5

The cost of plant and equipment required is expected to be N$8 million and the residual value of
the plant at the end of the economic life is expected to be zero, whether the economic life is 3,4
or 5 years. Assume that there is no taxation and the company cost of capital is 11%. The fixed
operating costs do not include depreciation and relate only to cash fixed overhead costs.
 REQUIRED: MARKS

2.1 Determine the NPV of the project for each of the three scenarios. 6

What is the expected net present value, standard deviation and

coefficient of variation of the project if the probability of the worst- 12
2.2
case scenario is 20%, the base case is 60% and the best case is
20%?
What would happen to the risk of the project if each scenario had an 12
2.3
equal probability of occurrence?
TOTAL MARKS 30

QUESTION 3 36 minutes 20 marks

The managing director of Mariental Limited is under pressure from shareholders to improve the
business' profitability. With this objective in mind, the managing director is considering various
financial proposals. Typical crucial areas of focus are the nature and level of long{erm debt,
and working capital requirements. At present the main focus is on the establishment of a level of
net current assets which is likely to yield the highest return on equity. The proposal that yields
the highest return on equity will be selected.
The managing director has approached you being an expert in financial management and has
requested you to analyse three proposals and advise him appropriately.

Proposal 1 Proposal 2 Proposal 3

Net current assets (as percentage of sales) 70% 50% 30o/o

The managing director has also provided you with the following information
Non-current assets N$ 100 million
Long-term debt to capital 60%
Average cost of longterm debt 10,5 Vo

Total annual expected sales N$ 340 million

EBIT 15o/o of total annual expected sales.
Tax rate 28o/o
 REQUIRED: MARKS
ln a columnar format, analyse the three proposal in terms of equity, after-tax earnings
3.1 12
and return on equity.

3.2 Which of the proposals in 1 .1 above would you advice the managing director to select. 2

Discuss the nature and impact of risk factors inherent in the selected proposal with
3.3 6
regards to relative investments in accounts receivables, inventory and cash balance.
TOTAL MARKS 20

Golden Goose Ltd is considering the acquisition of Woodpecker Ltd. Golden Goose's price-
earnings ratio is 16 and it has 8 million issued ordinary shares. The after{ax earnings amounts
to N$8 million per annum. Woodpecker Ltd has a price-earnings ratio of lZ and has an issued
ordinary share capital of 2 million shares. Woodpecker's after-tax earnings amount to
N$6 million per annum.

Earnings and dividends of Woodpecker Ltd are expected to grow at a constant rate of 1Oo/o per
annum, without the merger. The merger is expected to increase the growth rate in Woodpecker
Ltd's earnings and dividends to 12o/o per annum. Woodpecker has a current dividend cover of
two. Golden Goose Ltd's tax rate is 28%.The mergerwill result in an immediate increase, due
to synergy, in after-tax earnings of N$1 million per annum. Golden Goose Ltd's shareholders,
based on the level risk of risk involved in Woodpecker Ltd, require a return of 1O% per annum
from any investment in Woodpecker Ltd.

REQUIRED: MARKS
4.1what value would Golden Goose Ltd place on each share in woodpecker Ltd? 5
What is the effect on the earnings per share of Golden Goose and Woodpecker's
4.2 shareholders if Golden Goose Ltd offered 5.5 million of its shares in exchange for 9
shares in Woodpecker Ltd?
Golden Goose is considering a cash offer of N$ 43 per share in Woodpecker Ltd. This
4.3 cash offerwill be financed by a loan at an interest rate of 14% per annum. Calculate the 6
impact this would have on the EPS.
TOTAL MARKS 20
 f 0 marks
What do you mean by globalization what are the reasons of integration of financial
integration? (10 marks)

End of question paper

 Present Valuo and Future Value Tables

Present valu€ lnterest Factore for ono Dollar Discounted at k perccnt for n peilods: pvlF,,n=
Perlod 1.1^ 70/" 3% 4t/. 5% a./" 7./" ao/. 9. 10y. 110/" 12./- 11% to/.
1 15% 16v. 20% 30%
{ o qqol 0.9709 0.951s 0.9524 0-94U 0-9346 0.9259 0.9174 0.9091 0-s009 0 a929 0.8850 0.4772 0.869G 0.8521 0.8333 0 8065 0.8000 0.7692
0.9803 0.s612 0.s425 o 92t6 o qn70 0.8900 0.873.4 0.8573 o aul o 826r 0.81 16 0.7972 0.783.! 0.7695 o 7561 n 7437 0.6944 0.6504 0.6400 0_5917
3 0.9706 o.9123 0 915, 0.8890 0.8638 0.8396 0.8163 0.793A o 7722 0.7513 0.7312 0.7118 0.6931 0 6750 n 6575 0.6407 0.5787 0.5120 o 4557
1 0.E6io o q?1, 0.888s 0.4227
0.8548 0.7921 0-7629 o 7350 0.7084 0,6830 0.5587 0_63ss 0.61r3 0 lqrl 0.5718 0.5523 o.aa23 0.4230 o 4096 0 tSnt
5 o 9515 0.8526 0.8219 0.7835 o 717! 0 7130 o aao6 0.6499 0.6209 0.5935 0 367d 0.5194 0.4972 0.4761 0_4010 0 341 o 3777

6 0.9,(20 0.8880 o.8375 0_7903 o 7462 o Tnio 0.6663 0.6302 0.s963 0.5tu5 n 1116 0.5056 0.4803 0.45s6 l-1323 o 410t o.2751 0.2621 0.2072
7 0.9327 0-8706 0 8t3l 0 759E I 7aO7 0.6651 0.6227 0-5835 0 547n n 511' 0-4817 0.4523 o.L7S1 0 3996 0 3759 0,3538 0.2791 0.2218 o_2097 0-l sE4
8 0.9235 o 8515 0.7894 0.7307 0.6768 0.6271 0_5820 0.5403 0.5019 0.4565 0.4339 0 4039 0.3762 0.3506 0.3269 0.3050 o.2326 0 1789 0.J678 0.'1226
q 0.9143 0.7564 0.7026 0.5446 o sqlq
0.8368 0.5002 0.4604 l-1211 o lqoq 0.3506 0.3329 0.3075 0-2843 0.2630 o lqlx 0.1443 0.1342 0.0943
t0 0.9053 0.8203 o 7441 o 8756 0.6t3s 0.5584 0.5083 0.4432 o 4?24 0.3855 0-3522 0.3220 0.2946 o 26q7 d 1t7, 0.2267 0.1 615 0.116{ o.107 1 6 0725

i1 o nq6a 0.8043 0.7224 0.6496 0.5847 0.5268 o aaa, 0.4289 0.3875 0.3s0s 0.3173 0.287s 0.2607 0.2366 o.2149 0-J954 0 1346 0 0q3B 0.0859 0.0558
a7 0.887,1 0.7885 o.7011 o 5564 o aq70 0.4440 0.397t 0.3555 o 3186 0.2858 0.2567 0.23U 0.2076 0 r869 o 16as n 111' 0.0757 0.0587 0.0429
13 0.4787 0-7730 o 6810 0.5303 0.4688 0.4150 0.3577 o 3262 0.2897 0.257 5 0.2292 o.2042 o 1421 n 1616 0.'1452 0.0935 0.0610 0.0550 0.0330
11 0.8700 o 7a7q 0.5775 0.s0s.l o.u23 0.3a78 0.2533 o.2320 0 1807 0.1597 0.1413 0.12s2 0.0779 0-0492 0_0440 0.0254
15 o 86t3 0.7430 0.5419 0.5553 0.4810 0 4i73 o 3a7t 0.3152 0.2745 o.239n 0 20s0 o 1427 0.1599 0.1401 o.1229 0.1 079 0.0649 0 03q7 0.0195

15 0.8528 o.72Al o 6232 0 5339 0.3936 0_3387 0.2919 0.2519 o 21a6 0.1883 0.163r 0.141 s o_1229 o_t059 o oqSn 0.0320 0.0281 0.0150
17 0.w4 17142 o 6050 n all, 0.4363 0.3714 0.3165 o 7703 o )aa1 0.'t978 0.1696 0-1456 o 1252 o 1n7t o oqrq 0.0802 0.0451 0.0258 0_0225 00116
i8 0-8360 o7no7 0.5874 0.4936 0.415s 0.3503 0.2959 o 25n2 0.2120 0.1 799 0.1528 0-1300 0 ,1of, 0.0946 0.0808 0.069, 0.0376 0.0208 0 0r80 0.0089
t9 I 0.6864 0.5703 0.4746 0-3s57 0.3305 or76a 0.2317 0.1945 0.r635 o 1777
^771 0.1161 0.0981 0.0829 0.0703 0.0596 0.0313 o 01A8 0.01u 0.0068
70 0.8195 0.6730 0.5537 0 4564 o 3769 n llla 0.2145 o.1741 ,446 n 1r4n
0.2584 o 0.1037 0.0868 o.o72s 0 06il o 0514 o orql 0.01't5 0.0053

21 0alr4 0.6598 0.5375 0.4388 0.3589 n-2912 a 2415 o lqaT 0.1637 0.135r i-1147 0.0925 0.0768 0.0638 0.0531 0.0&3 o_0217 0 0109 0.0092 0.0040
21 0.80s4 0.6468 0.521 I 0.!22n 0 3418 o 7174 0.1839 0.1 502 o 1r2a o 10a7 0.0826 0.0680 0.0560 o.lt62 o 0382 o 01al 0.0088 0.0074 0.0031
23 0.7954 0_6342 0 5067 o 4037 0.3255 0.2618 0.2109 0-r703 o 1378 o al1a 0.0907 0.0738 0.0501 o 0491 0 04n2 0.0329 0.0151 0.0071 0.0059 o.oo24
u 0.7876 o 6717 0 aqlq 0.390'l 0.3101 0.r470 0.1s71 o 1s77 0.t015 0.08t7 0.06s9 0 0532 0.0349 0.0284 0.0125 0.0057 o.oo47 0 00ta
25 o 7794 0.60r5 0.4776 0.375t 0.2953 0_2330 o 1at2 o 1a60 0.1't60 0.0923 0.0736 0 0584 n nn71 0.0378 0.0304 0.024s 0_0105

30 0.7413 0.5521 o.1120 0-30a3 o 2t1n o t7l1 0.1314 0.0994 0.0754 o 0573 0.0437 0.0334 0.0256 0-0196 0_01st o 0116 0.0016 0.0012
35 0.7059 0 5000 o 35il Laan 0.1813 0.1301 0.0937 0.0676 o 0d90 0.0356 0.0259 0-018s 0_0139 0 010? o o07s 0.005s 0.0017 0.0005
36 o-6989 o aqn? 0.3450 0.2437 o.t727 0.1727 0.0875 o 0626 0.0ff9 0.0323 0.0234 0_0169 0 0l?l 0.0089 0.0065 0.0048 0.0014
LO n 6717 0.4529 0.3066 0.2083 0-t420 o 0972 o 066i 0.0460 0.0318 o.0221 o 01il 0 0tn7 0.0075 0.0053 0.0037 0.0026 o 0007
50 0.5080 0.2281 0.1 407 0.0872 0.0s3 0.0339 0.0213 0.0t 34 0.0085 0-009 0.0035 0.0022 0.001i 0.0009 0.0005

TableA4 PresentValuelntsrestFactorsforaOne-DollarAnnuity Discountedatk percentforn pcriods: PVIFA=tl -ll(1 +k)nl/k

Period to/" 20/" 3r/^ s% 60/. ao/" 9V^ 10% 11y, 12./" l3% 15t/. 16% 24r/, 23.4 30%
0 g90l o qSnd 0.9709 0.9615 0.9524 0_94U 0.92s9 0.9174 0-9091 0 9009 0 aq2q 0.8850 0.8772 0.8696 o.4621 0.8333 0 8065 0 8000 0.7692
2 t.9704 1.9416 1.9135 1.8861 1.8594 1 83U t.8080 l.7433 1.7591 1.7355 1 7179 r.6901 t.6681 1.6467 i_6257 1.5052 1 S27A 1.400 1.3609
2.9410 2.8839 2_8286 2 7751 2 723' 2.6730 2.6243 2.5771 2.5313 2.437 2.4018 2.3216 2 2432 2 2459 .9813 1.9520 1.8161
4 3.9020 3.8077 37111 3 62qq 3.5460 3.4651 3.3872 3.3121 3 23q7 3.1 699 3.1024 3.0373 2 9745 2 9137 2 n550 2.5887 2_4043 2.361 6 2 1662
4-A531 47115 4 5197 4.4518 4.3295 1.2124 1.1002 3.9927 3,8897 3.7908 3.5959 3.6048 3 5172 3.433'l 3.3522 3.2743 2.9906 2.7454 2_5893 2 4356

C 5 TqSF 5.6014 5.4172 5.2421 5_0757 4 9173 4 7665 4.6229 4.4859 4.3553 I 1414
4 2305 3_9975 3.8887 3.5847 3 3255 , E\11 2.6427
6.7282 6.1720 6.2303 6 002t 5 ?86d 5.582 5.3893 5.2054 5.0330 4 86ad 1-7122 6.5538 1.4226 4_2883 4-1604 4 0346 3.2423 3.1611 2.8021
I 7.6517 7_3255 7 0tq7 6.7327 6.4632 6.2098 5.97 lX 5_7466 5.5348 5,334S 5.'t461 4_9676 4.7988 4 6fAC n ta71 3.8372 3.4212 3.3289 2_9217
s a 5660 a 161' 7.786'l 7.4353 7.1078 5.8017 6.5i52 5.9952 5.7590 5.5370 5 32A2 5 1117 4.9461 4.7716 4.6065 4_0310 3_565s 3 4631 3 01qo
10 q dTil
8.9826 8.5302 8.1 10S 7.7217 7 360' 7 0136 6.710'l 6.4117 4.1u6 5 4892 5 650' 5-4262 5.2r51 5.0'188 4.83t2 1.1925 I 6819 3 5705 3.0915

11 10.368 s.7868 9.2526 8.7605 t ia6q 7.4987 7.r330 6-8052 6 4951 6 5.9377 5.6869 5.t527 s-2337 5 0286 3.77 51 3.6564 3.14?3
12 1'1.255 10-575 9 9v0 I tASt '066
8.8633 8.3838 7.9121 7.5361 7 1607 6.8 I 37 6.4921 6.'194 5.9175 5.6603 5 d2n6 4,4392 3.85r 4 3.7251 3.1903
t3 12.131 t 344 10,635 9.9856 9.3936 8.A527 8.3577 7.9038 7 ai6q 7.1031 6.7499 6_4235 6 1214 5 Anrn 5.s83r 5.3423 4.5327 3-9124 3.7801 3 2233
14 t3 004 1) lna I 1.296 10.563 9.8986 9.2S50 47155 I7&' 7.7862 7.3667 6.981S I 62A2 6.3025 6.002, 5.7245 5.4675 4.6106 3 g6t6 3 4241 3.2487
15 13.865 '12.a49 11.938 l -11a t0 3a0 97117 9,1079 8.5595 8.0607 7 6061 7.1909 6.8'09 6.4624 8.1422 5-A!71 5 5755 4 67t5 3.8593

t6 14.71A 13.57a 12 56t 11 6a) to a1t 1 0.105 9.4466 8.8514 8 3126 a a7a7 7.3792 6.9740 6.5039 6 2651 5 9s2 0333 3.8874 3.2432
l7 15.562 i3 i66 12.166 11.274 10.177 9.7632 9-1216 a 5n36 8.0216 7.5488 7.1196 6_7291 6 372q 6 0t77 4.7746 4.0591 3.294a
3.9099
18 t6-398 13.75,1 r2.659 t1.590 10.828 10.059 9-3719 8.7556 8.2014 7.7016 6.839C A AETL
7 -2197 6.1280 5.8178 4.8122 4.0799 3_9279 3.3037
i9 17 21R 14.324 t3.134 12.085 11_1 58 lo 336 9 6036 8.950'l 8,3649 7-8393 7 3658 6 C380 6-5504 6.1982 5.8775 4.8435 4.0967 3 9421 3 3105
20 r8.046 35'l 14.877 13-590 12_162 11 470 lo tqd 9.8181 9.1285 8.5136 7 9633 7 46ql 7,0248 6.6231 5.2593 5-9288 4 4696 4 li03 3 q51q 3.3r 58

21 t8 857 a7 011 l5 dl6 12.821 1.764 10.836 10_o17 I 29?' 8.6487 8.0751 7.5620 7.1016 6 6870 6 alra 5.9731 4.8913 4.',t212 3.9631 3.3198
22 19 660 't5.937 '14.45,l I 3.163 12.0L2 tt 061 10 701 9.4424 8.7715 4.1757 7.6U6 7 6,7429 6.3587 5.0'113 4.9094 4.1 300 3 9705
23 2n d56 18.292 16.W 14-aS7 t3.48S 303 11 2a7 '6q5
10.37't 9.5802 8.8832 8-266r 7 71AA 7.2297 6.7921 6.3988 8.O42 4-9245 4 1371 3 q764 3.3254
21.243 18.914 16-936 15.217 13 799 2 550 10.529 9.7066 a 9847 a 3dal 7.2825 6.83s1 6.4338 6-O726 4 9371 4 14)A 3.3272
25 22.023 19-523 1 413 15 622 ,d oqr 12.783 fi.65.{ 10.575 9.8226 9 0770 8.4217 7.4431 7.3300 6.8729 6 4641 6 0s7 4.1474 3.3286
3.9849

30 25-AO8 22 196 1q 600 15.372 13.755 12.409 I -25A 10 27A 9.4269 8.6938 8-0552 7 4957 7 0027 6 5660 4.9789 4.t601 3.9950 3_3321
35 29 109 24 qCq 18.665 1G.374 t4.498 12-944 655 io 567 9.6442 8.8552 8-17S5 7 5856 7 07nn 6.6r66 6.2'153 4.9S15 4.1844 3.9384 3_3330
36 30.108 25.489 21.832 l8-908 16.547 14 A21 i3 035 t 717 t0.61 2 9.6765 a 8746 a 197a 7.5979 7.0790 6.623't 6.2201 4.9929 4.1 649 3 99A7 3 111
32-835 23.11s 1E 793 7 t5q 1.925 10.757 97711 8 E51 E.2438 7 _6344 7.1050 6.6418 6 2335 4 9966 a 165q
50 39.195 31.424 25.730 21 -482 18.255 t5-762 13 aO ,l2.233 't0.962 9.9148 9.0417 8.3045 7.6752 7.1327 6.6605 6.2463 4.99S5 4.1665 3 9999
 Presont Value and Future Value Tables

Table A.1 Future Value lnterest Factors for One Dollar Compounded at k Porcent for n Periods: FVIF k..= (1 + k)'

11" 2,4 3'L 4/" s% 6.h 7% 8% a.L 10Y. 11y. 12% 1 to/. t4'/^ 16% 20% 21% 25./" 30%
I , 0{00 1_0200 ,.0300 1 _0400 i.0500 1-d600 {.0700 1.0s00 .0s00 1.t 000 t.1100 t.1200 1.1300 1.1400 1.r500 1500 LO00 t ,400 1 ?S00 I lnOO
, n20 1 050q i oa16 1 1025 1.1276 1.1U9 t.1664 1 88' 1.2100 1.2321 1_2W '1.27a9 t-2995 1.3225 1.3456 1.4400 1.5376 t.5625 1.6s00
3 1.0303 r.0612 I Oqra 1-1219 t676 I tq{o 1 2?50 1 2597 1 33rO 1-3576 I _40t9 4.4429 1.4815 {.5209 1.5609 1.72aO 1.9066 {.s531 2-1970
4 t.M06 10421 1,1255 ,t.1699 1,21 55
,t,2625 3tnf, I 1^n5 il1A 1 t6A1 I 5t8i ! 5735 I 6305 t 68qo 1 7490 1.a1 0G 2.0736 4.3647 2-U11 2.8s6 i
5 t-05t 0 1.1041 1.r583 1.2167 1.2763 '1.3382 1 -4026 1,4693 1.5386 1.61 05 I atit I Ttra I qr6t , naaa ) lnda ? dAxl 2 q316 3 0514 3712q

6 1.0615 1.1262 1 1qd I 140{ I dlas { 5007 I 586E 1 C771 1 7716 I A70d I q73a 2 6A2l 2 {950 ).x131 2-9860 3-6352 3.4117 4.8268
7 1.0721 1.t487 t.2299 1.31 59 I ln71 , 4nta I Ttlt 1 irAo I qltT , n762 , 1107 , BnTa 2 6600 7 A2E2 3 5A32 I AO17 I 76el 6 2749
a t-0829 1.1747 {.2668 t.3686 1.1775 t.5938 1.7142 1.8509 1.9926 2.1436 2.3015 2.4760 2.6584 2.8526 3.0590 3.2184 4.2998 5.5895 8.r573
E t-0s37 {.1951 t_3048 1.n233 1.5513 1.68S5 1.8385 1.S990 7.1715 2.3575 2.5580 2.7731 3.0040 3.2s19 3.517S 3.8030 5.1598 6.93r0 7.4505 10.604
10 7190 I 3439 1 4AO2 I 6289 1.7908 1.9677 2.t589 7 3671 7 5937 2 8394 3 3-3946 3-7072 4_0456 4_4111 6.1917 8_5S44 9.3132 13.786
'Osa

t'l t.1 t 57 1.2434 t.3842 1.5395 1.8983 2_1049 2.3316 2.5804 2.8s31 3.1518 3,4785 3.8359 4.2262 7 a30l to 657 11 Aa2 17 9r1
l2 t-1 258 1.2642 1.4254 1.60{0 t.79s9 2.0122 2-2522 2.5182 2.4121 3.1384 3.498s 3_8960 4_3345 4.8179 s-350! 5-9360 8.9161 t3.2t5 14.55? 23.298
i3 1381 i.2936 t.4685 1 665i I 8A5C 2 1a29 2 toga )7196 3 4523 3 aal3 4 3635 4 8q80 I i92L 6 1t2A 6 aa58 10 699 r6 386 18 {90 30 288
1.1495 1.3195 t.5126 1,7317 1.9799 2.2509 2.5785 2.9X72 3.3411 3.7975 4,3104 4.887 1 5.5348 5-2613 7.07s7 7.9875 t2.839 20.319 22.737 39.374
't5 1.16t0 t_3459 t.5580 1.8009 2.0789 2.3956 2.7590 3.1722 3.6425 a.1772 L7416 5.4736 6.2sd3 7-1379 8-1371 9.2655 1s.407 2s.1 96 28.422 s1.r 86

t6 I 1726 1 3774 t 1730 2 1A29 2 9572 3 425q 3 9703 a 5q50 a 3t0q a ltnr' 7.0673 8-1372 q 1a76 ln74a lA a8a 31 247 35 a7a 66 54?
f t,6528 , tgri I 76dn 5.0545 5.8951 6.8660 7.9861 9.2765 10.761 12.468
t8 t.1961 ,1.1282 1.7021 2.0258 2.4066 2.85,13 3.3799 3.9960 1.717',1 5.5593 6.5436 7.5900 9-0243 10.575 12.37S 14.461 48.039 55.51,1 '112.455
t9 L2041 1-4s68 1.7535 2-1068 2-5270 3.0256 3.5r55 4-3157 4.1417 6_11 59 7.2e33 8.6{28 10.197 12-056 44.732 1e.?77 31.948 59.568 6S.389 146.192
20 1 2202 1 485E 1 A06t 2 1911 2 6533 3 2071 3 86S7 a 6610 a 7275 I 06?1 ! 6d63 I q)1 111ta 16 367 1q d61 73 864 a6 736 lqo 050

2 2a2A i tt57 I t6n3 7 178fr , 7U60 1 3q96 5 0i3t 8.9492 10.804 t3.021 r5.668 14.822 22.574 46.005 91.s92 104.420 x47.065
,, 2.9253 5,4355 6.6586 8. t403 9.9336 I 2-100 14.714 17.861 21.645 26.1 86 s5.206 113.574 135.525
1.2572 !.5769 1.9736 2-4647 3.0715 3.8197 4.7405 5.87r5 7.2579 8.993 11.025 13-552 16_827 20.362 24.891 30.376 66.247 140.831 169.407 417.539
21 1.2697 t.6084 2.0324 2.5533 3.22s1 4.0489 5.0724 6-3l't2 7.9111 9.8497 14.239 1 s-179 18.788 23-?12 28-62s 35_236 79-497 174.831 711.7s8 542-a01
2A t2a2t 1_6406 2 66s8 3 3854 4 2919 s.4271 6 8a85 8 6231 10 835 t3 585 t7 000 )1 3' qtq A6 A7A qq 1q6 716 il7 70a 6dl
'11

30 1.3478 t.81 14 2-4273 3.2434 4-3219 5.7435 7.5123 't0.063 t3.268 17-U9 22.492 2S.S60 39.115 50.950 64.217 85.850 237.376 634 a20 ao7 794
t.41 66 1.9999 2-8139 3.946t 5-5150 7.6851 i0.677 t4 78s 20 Lln 2A 102 3A s7S 57 iOO qi ,oo tal 176
35 I {308 2 0399 2 8943 4 103q 5 7ql8 a 1473 MI 15.s68 22.251 30.913 [2.414 59.'135 8't.437 t1 1.834 ,15t.152 209.'t64 708.802
AO 7 )nan 3.2620 tolo 7.0400 10.286 14.974 3i.409 45.259 65.001 s3.05t 1X2.742 ,8A.884 267 -861 37a-721
50 2.69'16 ,t,3839 7.1057 1.467 1A.420 29.457 46.902 74.358 117.391 184.565 289.002 450.736 700.233

Table A-2 Future Value lnterest Factors for a One-Dollar Annuity Compounod at k Perccnt for n Periodsi FVIFA k.,= ft1 + k)D . 1 I/k

Perlod 10/" 5./^ 6./- 7./- a./. 90/^ ln /- 11./" 12% 13.h l{.h ts% 16% 20% 24.h 25% 30y,
1 { 0000 I 0200 ,0300 1 0400 I 0500 1 0600 t 0700 I OAOO I dqoo 1.1 000 1.'t100 t.'t 200 t.1 300 t.'1400 1,1s00 1.1600 1.2000 1.2400 1_2500 1.3000
2 2 0100 ? 0d00 2 0500 , n60n , n70n 2.0800 2.0900 2.1000 2.'l 100 2.1200 2.1 300 2-1400 2_1500 2-1600 2.2000 2-2400 2.2500 2.3000
3 3 010 3.1216 3.1525 3.1836 3.2149 3.2464 3-278',1 3.3r00 3.3421 3.374 3.4059 3-4396 3-1725 3-5056 3-6400 3-7776 3.81 25
4.0604 4.1216 4.1836 4.2465 4.3101 4.3?46 4.4399 ,1.5061 4.5731 4_6410 4.7097 17793 4 8498 4 9211 4 q934 5 0665 6 1R70
5 5_101 0 5.2040 5.3091 5.4153 5.5256 5.637{ 5-7507 5.8665 5-9847 6.1051 6 2274 6 352a 6 4AO1 6 6tOt 6 a77i 7 4416 8.2070 9.0431

6 6 1520 6 30n, 6.8019 a q?51 7.'t533 7.3359 7.5233 1.7156 7.9129 a.1ts2 4.3227 8-5355 4.7E37 8_9775 s_92S9 lo.s80 11 259 12 756
7 7.2135 7.1343 7.6625 7.8383 8.'1420 8.3938 8.6540 4.9224 9.200{ 9_1A72 9.7833 10 049 t0 405 10 730 I 067 1L 12 q16 ,d 615 15 071 7 543
8 8.2A57 8.5830 8.8923 9.2112 9.s491 s_8975 t0.250 t0-537 1 024 11 d36 li aBq 12.300 12.757 t3.233 13.727 14-240 1 6.499 19.842
I s 368s E 7546 10 159 10 543 11 027 11 L91 11 974 1) NAB t1 n71 13.579 14.164 14.776 t 5.416 t6.085 16.786 '17.51S 20.7ss 24.712 25.AO2 32.015
10 ln q50 l, 006 17 414 ll lnt 14.48? 15.193 15.937 18.722 17.U9 14.420 19_337 20-30t 21.321 25-959 13 253 4a_519
31 -643

1t 1 r.557 I 2.{ 69 2.808 3.486 14.207 14.572 15-784 15.645 i7 560 la 531 19 561 ?o 655 ,1 A1t ,1 nta ,A AA9 ,4431 ar l4n
12 12.683 13-114 492 5.026 t5.917 15 870 17 888 1A E77 2n 1l 21.384 22.713 24.133 25.650 27 -271 29.002 30.850 39.58'l 50.895 54_208 74.327
13 l3 aoq t4 6tn 6tn d 6aa l7 all li na2 1n 1A1 22,953 24.523 26-212 2a.029 29.985 32.089 34.352 36.786 44.491 64.110 68.760 97.625
at la qt 15.974 ,086 8.292 t9.599 21.01 5 22.550 24.215 26.019 27.575 30-095 32-393 34 883 37 5# 40 505 13 672 59 196 a0 496 86 949 127 917
15 t6.097 '18.599 20.o24 21.579 23.276 25-.129 27.152 29.361 31.172 34-405 37 2AO 40 L17 a7 580 51 660 72 nls 100 a15 t0q 5a7 167 2A6

16 17.258 18-539 20.157 21.425 23.E57 25.67! 27.844 30.324 33 003 35 950 3q tqo 12 751 sn qao 44117
17 t8.430 20.o12 21.7G2 23.594 25-a10 24.213 30.840 33.750 36 q7a 40 M5 53,739 59,1 1 8 65.075 71.673 10s.931 157.253 173.636 285,014
18 I 9.6r5 21 112 23 411 2a 172 30 906 37 450 41 fol 50.396 55.750 61.725 68-394 75.836 84.141 128-111 19s.994 218.04s 371.518
l9 20 at1 1) ALl 7\ 1la 27.571 36 51q 11 760 37.379 41.446 46.018 51.159 56-939 63-4,10 70.749 78_969 aa.2.l2 98.603 154.740 244_O33 273.556 483.973
20 22.O19 2 _297 26.870 29.77a 33.066 36.786 40.995 15.762 51.1 60 s7.275 64.203 72 n52 80 9A7 01 025 102 4U 1 t5 3a0 303 601 747 9n5 630 165

21 23.239 25 743 2A 676 31 959 35 719 39 9E3 50 123 56 765 6A OO' 7' 81.599 92.470 104.768 I 18.810 134.841 225.026 377.465 429.681 820.215
'64
22 24 472 27 299 30 537 3A 505 a3 a92 15 Aa1 71,403 41.211 92.503 105.491 120.436 i37.632 157.,11 5 271.031 469.056 538_101
23 25716 2A a45 12 4Sa 36 AIA d1 410 d6 qq6 60.893 69.532 79.S3 9t-148 t04.603 120.205 134.257 159.275 326.237 582.630
,6 qrl 34,426 66.765 75_790 88.497 102.174 118.155 136.831 158.659 184-168 2i3_S78 392.444 f23.461 843_033
25 28.243 32.030 36.459 41.646 47-727 54.855 63.249 73.106 44.701 98.347 114.L17 133-334 155.620 la1.a71 21 2-793 249_21 4 471.981 898.092

30 34_785 40 568 17 575 56 045 79 054 11 3 243 136 30i t99.021 241.333 293.199 356.787 434.745 530.312
35 41 660 dq qqd 60 d6, 7t 65' qo 1ro lrt 435 t3a ,17 14,417 ,1< 111 271.024 34't.590 431.663 546.681 693-573 881.170
16 a1 n77 51.994 63.276 77.598 95.836 r r9.1 21 t48.913 187.102 236.125 299.127 380.164 484.463 518.749 7S1-673
40 48.886 60.402 75.401 95.026 't20.800 15/,.762 t9s.635 259.057 337-882 u2.593 581_825 767 091
50 64.463 8,1.579 1't2.197 152.667 209.348 290.336 406.529 573.770 81 5.084