[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 3% return from its investments. $ (220,000) Initial investment Net cash flows: Year 1 160,000 128,000 125,000 Year 2 Year 3 oS 11-19 (Algo) Net present value with unequal cash flows LO P3 ompute this machine's net present value. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables rovided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Net Cash Flow Present Value Factor Present Value of Net Cash Flows
[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 3% return from its investments. $ (220,000) Initial investment Net cash flows: Year 1 160,000 128,000 125,000 Year 2 Year 3 oS 11-19 (Algo) Net present value with unequal cash flows LO P3 ompute this machine's net present value. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables rovided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Net Cash Flow Present Value Factor Present Value of Net Cash Flows
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![[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 3% return from its investments.
Initial investment
Net cash flows:
$ (220,000)
Year 1
160,000
128,000
125,000
Year 2
Year 3
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 FVA 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.)
Net Cash Flow Present Value Present Value of Net
Factor
Cash Flows
Year 1
Year 2
Year 3
Totals
Initial investment
Net present value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fde73d8a3-703f-492e-8945-c6a65b8a92bf%2Fd370b0c9-9b16-45d8-b035-b24d188cd10f%2Fudqvmv7_processed.png&w=3840&q=75)
Transcribed Image Text:[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 3% return from its investments.
Initial investment
Net cash flows:
$ (220,000)
Year 1
160,000
128,000
125,000
Year 2
Year 3
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 FVA 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.)
Net Cash Flow Present Value Present Value of Net
Factor
Cash Flows
Year 1
Year 2
Year 3
Totals
Initial investment
Net present value
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