Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 9% return from its investments. Initial investment $ (300,000) Net cash flows: Year 1 Year 2 Year 3 Compute this machine's net present value. (PV of $1, FV of $1, PVA of $1, and FVA 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.) 135,000 102,000 113,000 Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flow Present Value Factor Present Value of Net Cash Flows $0 $0 $0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Ee 385.

Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The
company requires a 9% return from its investments.
Initial investment $ (300,000)
Net cash flows:
Year 1
Year 2
Year 3
Compute this machine's net present value. (PV of $1, FV of $1, PVA of $1, and FVA 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.)
135,000
102,000
113,000
Year 1
Year 2
Year 3
Totals
Initial investment
Net present value
Net Cash Flow Present Value Factor Present Value of Net Cash Flows
$0
$0
$0
Transcribed Image Text:Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 9% return from its investments. Initial investment $ (300,000) Net cash flows: Year 1 Year 2 Year 3 Compute this machine's net present value. (PV of $1, FV of $1, PVA of $1, and FVA 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.) 135,000 102,000 113,000 Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flow Present Value Factor Present Value of Net Cash Flows $0 $0 $0
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