Pablo Company is considering buying a machine that will yield income of $3,300 and net cash flow of $16,000 per year for three years. The machine costs $45,000 and has an estimated $6,900 salvage value. Pablo requires a 10% return on its investments. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your present value factor to 4 decimals.) Net Cash Flows X PV Factor Present Value of Net Cash Flows Years 1-3 Totals Net present value = = = =
Pablo Company is considering buying a machine that will yield income of $3,300 and net cash flow of $16,000 per year for three years. The machine costs $45,000 and has an estimated $6,900 salvage value. Pablo requires a 10% return on its investments. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your present value factor to 4 decimals.) Net Cash Flows X PV Factor Present Value of Net Cash Flows Years 1-3 Totals Net present value = = = =
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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