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Check . Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Following is information

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Check . 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 6% return from its investments. Investment Al $(330,000) Initial investment Expected net cash flows in Year 1 Year 2 Year 3 195,000 108,000 87,000 QS 26-12 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. 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 18

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