t of equipment, or $200,000, leaving
$934,480 as the present value of the profit in sight. A further
refinement could be added by calculating the interest chargeable
against the $200,000 equipment cost up to the time of production.
TABLE III.
===========================================================================
Annual | Number of years of life required to yield--% interest, and in
Rate of | addition to furnish annual instalments which, if reinvested at
Dividend.| 4% will return the original investment at the end of the period.
---------|-----------------------------------------------------------------
% | 5% | 6% | 7% | 8% | 9% | 10%
| | | | | |
6 | 41.0 | | | | |
7 | 28.0 | 41.0 | | | |
8 | 21.6 | 28.0 | 41.0 | | |
9 | 17.7 | 21.6 | 28.0 | 41.0 | |
10 | 15.0 | 17.7 | 21.6 | 28.0 | 41.0 |
| | | | | |
11 | 13.0 | 15.0 | 17.7 | 21.6 | 28.0 | 41.0
12 | 11.5 | 13.0 | 15.0 | 17.7 | 21.6 | 28.0
13 | 10.3 | 11.5 | 13.0 | 15.0 | 17.7 | 21.6
14 | 9.4 | 10.3 | 11.5 | 13.0 | 15.0 | 17.7
15 | 8.6 | 9.4 | 10.3 | 11.5 | 13.0 | 15.0
| | | | | |
16 | 7.9 | 8.6 | 9.4 | 10.3 | 11.5 | 13.0
17 | 7.3 | 7.9 | 8.6 | 9.4 | 10.3 | 11.5
18 | 6.8 | 7.3 | 7.9 | 8.6 | 9.4 | 10.3
19 | 6.4 | 6.8 | 7.3 | 7.9 | 8.6 | 9.4
20 | 6.0 | 6.4 | 6.8 | 7.3 | 7.9 | 8.6
| | | | | |
21 | 5.7 | 6.0 | 6.4 | 6.8 | 7.3 | 7.9
22 | 5.4 | 5.7 | 6.0 | 6.4 | 6.8 | 7.3
23 | 5.1 | 5.4 | 5.7 | 6.0 | 6.4 | 6.8
24 | 4.9 | 5.1 | 5.4 | 5.7 | 6.0 | 6.4
25 | 4.7 | 4.9 | 5.1 | 5.4 | 5.7 | 6.0
| | | | | |
26 | 4.
|