Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dont know what I did wrong. just need the corrext answer thank you Required information Use the following information for the Quick Study below. [The

Dont know what I did wrong. just need the corrext answer thank you
image text in transcribed
image text in transcribed
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 A1 Initial investment $(390,000) Expected net cash flows in: Year 1 105,000 Year 2 138,000 Year 3 77,000 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $25,500. Compute the investment's net present value. (PV of $1. EV 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.) Year 1 Year 2 Year 3 Totals Amount invested Net present value Answer is complete but not entirely correct. Cash Present Value Flow of 1 at 6% Present Value 105,000 0.9434 $ 99,057 138,000 0.8900 122,820 77,000 0.8396 64.649 $ 320,000 $ 286,526 390,000 S (103,474)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

More Books

Students also viewed these Accounting questions

Question

What is the coefficient of determination and how is it computed?

Answered: 1 week ago

Question

Outline some key aspects and contemporary issues in IHRM

Answered: 1 week ago