Question
Exercise 24-8 (Algo) Net present value and unequal cash flows LO P3 A company is considering a $154,000 investment in machinery with the following net
Exercise 24-8 (Algo) Net present value and unequal cash flows LO P3
A company is considering a $154,000 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 | $9,000 | $26,000 | $51,000 | $39,000 | $103,000 |
(a) Compute the net present value of this investment. (b) Should the machinery be purchased?
equired A
Required B
Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.)
|
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Interne Revision In Verbundgruppen Und Franchise Systemen Verbreitung Und Qualit T Der Internen Revision In Unternehmensnetzwerken
Authors: Hans Ulrich Westhausen
1st. Aufl. 2016 Edition
3658121963, 978-3658121969
