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1.) Required information [The following information applies to the questions displayed below.] Following is information on an investment considered by Hudson Co. The investment has
1.) Required information [The following information applies to the questions displayed below.] Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 3% return from its investments. Investment Al $(290,000) Initial investment Expected net cash flows in Year 1 125,000 140,000 109,000 Year 2 Year 3 Compute this investment'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.) Present Value of 1 at 3% Cash Flow Present Value Year 1 Year 2 Year 3 Totals 0 S 0 Amount invested Net present value S 0 2.) If Quail Company invests $40,000 today, it can expect to receive $11,800 at the end of each year for the next seven years, plus an extra $6,100 at the end of the seventh year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 10% return on investments? Chart Values are Based on: n = % Cash Flow Select Chart Amount PV Factor Present Value Annual cash flow Additional cash flow Net present value 3.) Required information (The following information applies to the questions displayed below.] Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 3% return from its investments. Investment Al Initial investment Expected net cash flows in: Year 1 Year 2 $(290,000) 125,000 140,000 109,000 Year 3 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $23,000. Compute the investment'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.) Present Value of 1 at 3% Cash Flow Present Value Year Year 2 Year 3 Totals Amount invested Net present value
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