Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results, Cash flows occur evenly within each year. (PV of $1. EV of $1. PVA of $1. and EVA of $1 ) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Machinery Selling, general, and administrative expenses Income Years 1-4 4. Determine Project Y's net present value using 8% 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.) Net present value Project Y $ 350,000 Present Value Net Cash Flows x of Annuity at 8% 157,500 87,500 49,000 $ 56,000 Present Value of Net Cash Flows $
Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results, Cash flows occur evenly within each year. (PV of $1. EV of $1. PVA of $1. and EVA of $1 ) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Machinery Selling, general, and administrative expenses Income Years 1-4 4. Determine Project Y's net present value using 8% 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.) Net present value Project Y $ 350,000 Present Value Net Cash Flows x of Annuity at 8% 157,500 87,500 49,000 $ 56,000 Present Value of Net Cash Flows $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
![Required information
[The following information applies to the questions displayed below.]
Project Y requires a $350,000 investment for new machinery with a four-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
Sales of new product
Expenses
Materials, labor, and overhead (except depreciation)
Depreciation Machinery
Selling, general, and administrative expenses
Income
Years 1-4
4. Determine Project Y's net present value using 8% 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.)
Net present value
Present Value
Net Cash Flows x of Annuity at
8%
2 Dro
S
40
10
Project Y
$ 350,000
157,500
87,500
49,000
$ 56,000
113
Present Value of
Net Cash Flows
0
Navt](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F472621be-5969-4a54-b52e-f83201e6e65c%2F13d98583-7616-45fd-8882-1e6a97dec809%2Fja8z99d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Project Y requires a $350,000 investment for new machinery with a four-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
Sales of new product
Expenses
Materials, labor, and overhead (except depreciation)
Depreciation Machinery
Selling, general, and administrative expenses
Income
Years 1-4
4. Determine Project Y's net present value using 8% 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.)
Net present value
Present Value
Net Cash Flows x of Annuity at
8%
2 Dro
S
40
10
Project Y
$ 350,000
157,500
87,500
49,000
$ 56,000
113
Present Value of
Net Cash Flows
0
Navt
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