Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Project Y $ 355,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses 159,040 57,500 25,000 Income $ 113,460 Determine Project Y's net present value using 9% as the discount rate. (Do not round intermediate calculations. Round ur present value factor to 4 decimals and final answers to the nearest whole dollar.) Present Value Present Value of Net Net Cash Flows of Annuity at %3D Cash Flows 9% ars 1-6 2$ %3D Net present value

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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4. Determine Project Y’s net present value using 9% as the discount rate. (Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.)

The dropdown options for the line under "years 1-6" are: total investments, net present value, present value of cash inflows

Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage value.
The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1,
FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Annual Amounts
Project Y
$ 355,000
Sales of new product
Expenses
Materials, labor, and overhead (except depreciation)
Depreciation-Machinery
Selling, general, and administrative expenses
159,040
57,500
25,000
Income
$ 113,460
4. Determine Project Y's net present value using 9% as the discount rate. (Do not round intermediate calculations. Round
your present value factor to 4 decimals and final answers to the nearest whole dollar.)
Present Value
Present Value of Net
Net Cash Flows
of Annuity at
9%
%3D
Cash Flows
Years 1-6
Net present value
Transcribed Image Text:Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Project Y $ 355,000 Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses 159,040 57,500 25,000 Income $ 113,460 4. Determine Project Y's net present value using 9% as the discount rate. (Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.) Present Value Present Value of Net Net Cash Flows of Annuity at 9% %3D Cash Flows Years 1-6 Net present value
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