A B C D 1 2 3 A company is considering a $174,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. 4 Initial investment 5 Required rate of return 7 Required: $174,000 10% 8 (a) Compute the net present value of this investment. 9 10 11 12 13 14 15 16 17 18 19 23 24 156782 2 22222222 Present Value of Net Period 1 Net Cash Flows Cash Flows $29,000 2 37,000 3 88,000 4 54,000 5 73,000 Totals $281,000 Initial investment Net present value 20 Verify the value of cell C18 using the NPV function 21 22 (b) Should the machinery be purchased? - Graded Worksheet. Yes G H