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Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 3% return from its
Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 3% return from its investments. Initial investment Net cash flows: Year 1 Year 2 Year 3 $ (220,000) 200,000 128,000 97,000 Compute this machine's net present value. (PV of $1, FV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.) Net Cash Flow Present Value Factor Present Value of Net Cash Flows Year 1 Year 2 $ 200,000 Year 3 Totals Initial investment Net present value $ 200,000
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