6 Net cash flows 7 569899 Initial investment A B C D Year 1 $10,000 Year 2 $25,000 Year 3 $50,000 $150,000 10% 9 Required rate of return 10 11 Required: 12 a) Compute the net present value of this investment. 13 14 Use formulas that reference data from this worksheet and from the appropriate 15 future or present value tables (found by clicking the tabs at the bottom of this 16 worksheet). Use cells A2 to F9 from the given information to complete this 17 question. 18 28 222222222222 30 19 Year 201 1 21 2 3 23 241 4 5 25 Totals 26 nitial investment 27 Net present value. 29 b) Should the machinery be purchased? 31 Should the machinery be purchased? =alue of $1 Net Cash Flows Present Value Factor Present Value of Net Cash Flows $10,000 25,000 50,000 37,500 100,000 $222,500 E Year 4 $37,500 F Year 5 $100,000 + G Future Value of $1 Present Value of Annuity of $1 Future Value of Annuity of $1 Grades