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A company is considering a $161,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments.
A company is considering a $161,000 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) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Net Cash Flow $10,000 $27,000 $53,000 $40,000 $108,000 (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.) Net Cash Present Value Present Value of Net Year Flows Factor Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value Required A Required B Should the machinery be purchased? Should the machinery be purchased?
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