Pablo Company is considering buying a machine that will yield income of $3,300 and net cash flow of $19,400 per year for three years. The machine costs $56,100 and has an estimated $7,800 salvage value. Pablo requires a 15% 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.) Years 1-3 Totals Net present value Net Cash Flows X PV Factor = E E = = E Present Value of Net Cash Flows $ 10 0

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Compute the net present value of this investment.
Pablo Company is considering buying a machine that will yield income of $3,300 and net cash flow of $19,400 per year for three years.
The machine costs $56,100 and has an estimated $7,800 salvage value. Pablo requires a 15% 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.)
Years 1-3
Totals
Net present value
to search
Net Cash Flows
BP
X PV Factor
< Pr.ex
=
=
E
7 of 16
Present Value of
Net Cash Flows
$
DELL
#
0
0
Next >
DU
91°F
[
Transcribed Image Text:Pablo Company is considering buying a machine that will yield income of $3,300 and net cash flow of $19,400 per year for three years. The machine costs $56,100 and has an estimated $7,800 salvage value. Pablo requires a 15% 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.) Years 1-3 Totals Net present value to search Net Cash Flows BP X PV Factor < Pr.ex = = E 7 of 16 Present Value of Net Cash Flows $ DELL # 0 0 Next > DU 91°F [
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