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A company is considering a $169,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flow (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Required A Required B Year Year 1 $10,000 Complete this question by entering your answers in the tabs below. Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.) $ Year 2 $29,000 Net Cash Present Value Flows Factor 10,000 29,000 56,000 42,000 113,000 $ 250,000 Year 3 $56,000 Present Value of Net Cash Flows $ $ < Required A 0 Year 4 $42,000 0 < Prev Required B > 3 of 6 Year 5 $113,000 F Next >

A company is considering a $169,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flow (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Required A Required B Year Year 1 $10,000 Complete this question by entering your answers in the tabs below. Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.) $ Year 2 $29,000 Net Cash Present Value Flows Factor 10,000 29,000 56,000 42,000 113,000 $ 250,000 Year 3 $56,000 Present Value of Net Cash Flows $ $ < Required A 0 Year 4 $42,000 0 < Prev Required B > 3 of 6 Year 5 $113,000 F Next >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company is considering a $169,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flow (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Required A Required B Year Year 1 $10,000 Complete this question by entering your answers in the tabs below. Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value Year 2 $29,000 Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.) $ Net Cash Present Value Flows Factor 10,000 29,000 56,000 42,000 113,000 $ 250,000 Year 3 $56,000 Present Value of Net Cash Flows $ $ < Required A 0 Year 4 $42,000 0 < Prev Required B 3 of 6 Year 5 $113,000 > Next >
Transcribed Image Text:A company is considering a $169,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flow (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Required A Required B Year Year 1 $10,000 Complete this question by entering your answers in the tabs below. Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value Year 2 $29,000 Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.) $ Net Cash Present Value Flows Factor 10,000 29,000 56,000 42,000 113,000 $ 250,000 Year 3 $56,000 Present Value of Net Cash Flows $ $ < Required A 0 Year 4 $42,000 0 < Prev Required B 3 of 6 Year 5 $113,000 > Next >
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