Compute this machine's net present value. (PV of $1. FV of $1. PVA of $1. and EVA of S1) (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 $ $ 180,000 108,000 75,000 363,000 Present Value Factor Present Value of Net Cash Flows $ $ 0 0
Compute this machine's net present value. (PV of $1. FV of $1. PVA of $1. and EVA of S1) (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 $ $ 180,000 108,000 75,000 363,000 Present Value Factor Present Value of Net Cash Flows $ $ 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hardev
![[The following information applies to the questions displayed below.]
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.
Initial investment
Net cash flows:
Year 1
Year 2
Year 3
QS 24-19 (Algo) Net present value with unequal cash flows LO P3
Compute this machine's net present value. (PV of $1, FV 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
$ (260,000)
180,000
108,000
75,000
Net Cash Flow
$
180,000
108,000
75,000
363,000
$
Present Value Present Value of Net
Factor
Cash Flows
$
$
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6180c222-579c-4bcd-8566-2598c6065bb7%2F74de33fb-e2f2-4b15-8b5d-99189576e2b8%2Facp3syo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
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.
Initial investment
Net cash flows:
Year 1
Year 2
Year 3
QS 24-19 (Algo) Net present value with unequal cash flows LO P3
Compute this machine's net present value. (PV of $1, FV 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
$ (260,000)
180,000
108,000
75,000
Net Cash Flow
$
180,000
108,000
75,000
363,000
$
Present Value Present Value of Net
Factor
Cash Flows
$
$
0
0
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