ch24 q10

Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below) Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 9% return from its investments Investment A1 $(220,000) Initial investment Expected net cash flows in Year 1 Year 2 Year 3 160.000 118,000 101,000 QS 24-11 Net present value LO P3 Compute this investment's net present value (Py of 51. V. of $1. PVA of S1, and FVAL S1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Cash Flow Present Value of 1 at 9 Present Value Yeart Year 2 Year 3 Totals Amount invested Net present value $ 0 $ 0 $ 0 QS 24-12 Net present value, with salvage value LO P3 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $27.500. Compute the investment's net present value (PV of $1. EV of $1. PVA of S1, 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 94 Present Value Year 1 Year 2 Year Totals Amount invested Net present value