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Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 12% return from its investments.
Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 12% return from its investments.
| Investment A1 | |||
| Initial investment | $ | (200,000 | ) |
| Expected net cash flows in: | |||
| Year 1 | 100,000 | ||
| Year 2 | 90,000 | ||
| Year 3 | 75,000 | ||
QS 26-11 Net present value LO P3
Compute this investments 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.)
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