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Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $21,000. Compute the investment's net present value.
Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $21,000. Compute the investment's net present value. (PV of $1, FV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Cash Flow Present Value of 1 at 6% Present Value Year 1 Year 2 Year 3 Totals Amount invested Net present value Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 6% return from its investments. Investment Al $(370,000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 130,000 128,000 117,000 QS 24-11 Net present value LO P3 Compute this investment's net present value. (PV of $1, FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Cash Flow Present Value of 1 at 6% Present Value Year 1 Year 2 Year 3 Totals Amount invested Net present value
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