A B D 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. 1 2 3 4 Initial investment 5 Required rate of return $174,000 10% 6 7 8 9 Required: (a) Compute the net present value of this investment. 10 11 12 Period 1 Net Cash Flows Present Value of Net Cash Flows $29,000 2 37,000 Formula must include 3 88,000 the PV function. 4 54,000 5 73,000 Totals 13 14 15 16 17 18 19 Initial investment Net present value 20 Verify the value of cell C18 using the NPV function 21 22 (b) Should the machinery be purchased? 23 24 Yes G