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A company is considering a $179,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV
A company is considering a $179,000 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 $11,000 Year 2 $30,000 Net Cash Flow Year 3 $59,000 Year 4 $ 45,000 Year 5 $120,000 (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Year Net Cash Flows Present Value Factor Present Value of Net Cash Flows 1 2 3 4 5 Totals $ 0 $ 0 Initial investment Net present value $ 0 Should the machinery be purchased
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