Required Information The following information applies to the questions displayed below] Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 6% return from its Investments. $ (360,000) 120,000 126,000 87,000 Initial investment Net cash #lo Year 1 Year 2 Year 3 Assume that instead of a zero salvage value, as shown above, the machine has a salvage value of $32.000 at the end of its three-year life Compute the machine's net present value. (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Year 1 Year 2 Year 3 Year 3 salvage value Totals Initial investment Net present value Net Cash Flows $ 0 Present Value Factor Present Value of Net Cash Flows $ $ 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required Information
[The following information applies to the questions displayed below]
Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company
requires a 6% return from its Investments,
Initial investment
Net cash los!
Year 1
Year 2
Year 3
Assume that instead of a zero salvage value, as shown above, the machine has a salvage value of $32,000 at the end of its three-year
life Compute the machine's net present value. (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables
provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.)
Year 1
Year 2
Year 3
Year 3 salvage value
Totals
Initial investment
Net present value
Net Cash
Flows
$
$ (360,000)
120,000
126,000
87,000
0
Present Value
Factor
Present Value of Net
Cash Flows
$
$
--
0
0
Transcribed Image Text:Required Information [The following information applies to the questions displayed below] Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 6% return from its Investments, Initial investment Net cash los! Year 1 Year 2 Year 3 Assume that instead of a zero salvage value, as shown above, the machine has a salvage value of $32,000 at the end of its three-year life Compute the machine's net present value. (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Year 1 Year 2 Year 3 Year 3 salvage value Totals Initial investment Net present value Net Cash Flows $ $ (360,000) 120,000 126,000 87,000 0 Present Value Factor Present Value of Net Cash Flows $ $ -- 0 0
Required information
[The following Information applies to the questions displayed below]
Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company
requires a 6% return from its investments.
Initial investment
Net cash flowS
Year 1
Year 2
Year 3
Compute this machine's net present value (PV of $1. FV of $1. PVA of $1. and EVA of S1) (Use appropriate factor(s) from the tables
provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.)
Year 1
Year 2
Year 3
Totals
Initial investment
Net present value
Net Cash Flow
$ (360,000)
120,000
126,000
87,000
$
0
Present Value
Factor
Present Value of Net
Cash Flows
$
$
0
Transcribed Image Text:Required information [The following Information applies to the questions displayed below] Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 6% return from its investments. Initial investment Net cash flowS Year 1 Year 2 Year 3 Compute this machine's net present value (PV of $1. FV of $1. PVA of $1. and EVA of S1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flow $ (360,000) 120,000 126,000 87,000 $ 0 Present Value Factor Present Value of Net Cash Flows $ $ 0
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