chine's net present value. (PV of $1. EV of $1. PVA of $1. all present value factors to 4 decimal places. Round p Net Cash Flow $ 150,000 146,000 117,000 0 Present Value Factor Present Value of Net Cash Flows $ $ 0 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The
company requires a 6% return from its investments.
$ (260,000)
150,000
146,000
117,000
Initial investment
Net cash flows:
Year 1
Year 2
Year 3
Compute this machine's net present value. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables
provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.)
Year 1
Year 2
Year 3
Totals
Initial investment
Net present value
Net Cash Flow
$
0
Present Value
Factor
Present Value of Net
Cash Flows
$
$
0
Transcribed Image Text:Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 6% return from its investments. $ (260,000) 150,000 146,000 117,000 Initial investment Net cash flows: Year 1 Year 2 Year 3 Compute this machine's net present value. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flow $ 0 Present Value Factor Present Value of Net Cash Flows $ $ 0
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