Required information Use the following information for the Quick Study below. (Algo) [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 $ (310,000) 115,000 146,000 85,000 QS 11-19 (Algo) Net present value with unequal cash flows LO P3 Compute this machine's net present value. (PV of $1, FV of $1, PVA of $1, and EVA of $1) Note: 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. Net Cash Flow Factor Present Value Present Value of Net Cash Flows Year 1 Year 2 Year 3 Totals Initial investment Net present value

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
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Required information
Use the following information for the Quick Study below. (Algo)
[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
$ (310,000)
115,000
146,000
85,000
QS 11-19 (Algo) Net present value with unequal cash flows LO P3
Compute this machine's net present value. (PV of $1, FV of $1, PVA of $1, and EVA of $1)
Note: 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.
Net Cash Flow
Factor
Present Value Present Value of Net
Cash Flows
Year 1
Year 2
Year 3
Totals
Initial investment
Net present value
Transcribed Image Text:Required information Use the following information for the Quick Study below. (Algo) [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 $ (310,000) 115,000 146,000 85,000 QS 11-19 (Algo) Net present value with unequal cash flows LO P3 Compute this machine's net present value. (PV of $1, FV of $1, PVA of $1, and EVA of $1) Note: 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. Net Cash Flow Factor Present Value Present Value of Net Cash Flows Year 1 Year 2 Year 3 Totals Initial investment Net present value
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