Question
A company is considering a $199,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV
A company is considering a $199,000 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 | $12,000 | $34,000 | $66,000 | $50,000 | $133,000 |
(a) Compute the net present value of this investment. (b) Should the machinery be purchased?
|
Should the machinery be purchased?
|
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The Anxiety Audit
Authors: Lynn Lyons
1st Edition
0757324258, 978-0757324253
