QS 24-17 (Algo) Net present value of annuity and salvage value LO P3 Pablo Company is considering buying a machine that will yield Income of $3,500 and net cash flow of $16,800 per year for three years. The machine costs $50,100 and has an estimated $10,200 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.) Years 1-3 Totals Net present value Net Cash Flows x PV Factor = S = Present Value of Net Cash Flows 11 0

QS 24-17 (Algo) Net present value of annuity and salvage value LO P3 Pablo Company is considering buying a machine that will yield Income of $3,500 and net cash flow of $16,800 per year for three years. The machine costs $50,100 and has an estimated $10,200 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.) Years 1-3 Totals Net present value Net Cash Flows x PV Factor = S = Present Value of Net Cash Flows 11 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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