A company is considering a $150,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Net cash flows Year 1 $10,000 Year 2 $25,000 Year 3 $50,000 (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Year 4 $37,500 Year 5. $100,000

A company is considering a $150,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of S1. EV of S1. PVA of S1, and EVA of Si) Note: Use appropriate factor(s) from the tobles provided. (a) Compute the net present value of this investment. (b) Should the machinery be purchased