TABLE II.
Present Value of $1, or £1, payable in — Years, Interest taken at —%.
| Years | 4% | 5% | 6% | 7% | ||
|---|---|---|---|---|---|---|
| 1 | .961 | .952 | .943 | .934 | ||
| 2 | .924 | .907 | .890 | .873 | ||
| 3 | .889 | .864 | .840 | .816 | ||
| 4 | .854 | .823 | .792 | .763 | ||
| 5 | .821 | .783 | .747 | .713 | ||
| 6 | .790 | .746 | .705 | .666 | ||
| 7 | .760 | .711 | .665 | .623 | ||
| 8 | .731 | .677 | .627 | .582 | ||
| 9 | .702 | .645 | .592 | .544 | ||
| 10 | .675 | .614 | .558 | .508 | ||
| 11 | .649 | .585 | .527 | .475 | ||
| 12 | .625 | .557 | .497 | .444 | ||
| 13 | .600 | .530 | .469 | .415 | ||
| 14 | .577 | .505 | .442 | .388 | ||
| 15 | .555 | .481 | .417 | .362 | ||
| 16 | .534 | .458 | .394 | .339 | ||
| 17 | .513 | .436 | .371 | .316 | ||
| 18 | .494 | .415 | .350 | .296 | ||
| 19 | .475 | .396 | .330 | .276 | ||
| 20 | .456 | .377 | .311 | .258 | ||
| 21 | .439 | .359 | .294 | .241 | ||
| 22 | .422 | .342 | .277 | .266 | ||
| 23 | .406 | .325 | .262 | .211 | ||
| 24 | .390 | .310 | .247 | .197 | ||
| 25 | .375 | .295 | .233 | .184 | ||
| 26 | .361 | .281 | .220 | .172 | ||
| 27 | .347 | .268 | .207 | .161 | ||
| 28 | .333 | .255 | .196 | .150 | ||
| 29 | .321 | .243 | .184 | .140 | ||
| 30 | .308 | .231 | .174 | .131 | ||
| 31 | .296 | .220 | .164 | .123 | ||
| 32 | .285 | .210 | .155 | .115 | ||
| 33 | .274 | .200 | .146 | .107 | ||
| 34 | .263 | .190 | .138 | .100 | ||
| 35 | .253 | .181 | .130 | .094 | ||
| 36 | .244 | .172 | .123 | .087 | ||
| 37 | .234 | .164 | .116 | .082 | ||
| 38 | .225 | .156 | .109 | .076 | ||
| 39 | .216 | .149 | .103 | .071 | ||
| 40 | .208 | .142 | .097 | .067 | ||
| Condensed from Inwood's Tables. | ||||||
If such a mine is not equipped, and it is assumed that $200,000 are required to equip the mine, and that two years are required for this equipment, the value of the ore in sight is still less, because of the further loss of interest in delay and the cost of equipment. In this case the present value of $1,304,000 in two years, interest at 7%, the factor is .87 X 1,304,000 = $1,134,480. From this comes off the cost 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.