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A company is considering a $163,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV

A company is considering a $163,000 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.

Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow $10,000 $28,000 $54,000 $41,000 $109,000

(a) Compute the net present value of this investment.

(b) Should the machinery be purchased?

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Table B. Present Value of an Annuity of 1 p=[11/(1+i)n]/i assuming an annual interest rate of 9% For (n=10,i=9%), the PV factor is 6.4177.$2,000 per year for 10 years is the equivalent of $12,835 today ($2,0006.4177). Table B.1* Present Value of 1 p=1/(1+i)n in 6 years from today? Using the factors of n=12 and i=5% (12 semiannual periods and a semianmual rate of 5% ), the factor is 0.5568. You would need to invest $2,784 today ($5,0000.5568) Compute the net present value of this investment. Note: Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar. Table B.4\$Future Value of an Annuity of 1 f=[(1+i)n1]/i an annual interest rate of 8% ? For (n=6,i=8%), the FV factor is 7.3359.$4,000 per year for 6 years accumulates to $29,343.60($4,0007.3359). Table B. 2 Future Value of 1 f=(1+i)n Using the factors of n=20 and i=2%(20 Should the machinery be purchased

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