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Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 9% return from its
Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 9% return from its investments. Initial investment Net cash flows: Year 1 Year 2 Year 3 $ (210,000) 160,000 144,000 99,000 Compute this machine'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. Round present value amounts to the nearest dollar.) Net Cash Flow Present Value Factor Present Value of Net Cash Flows Year 1 Year 2 Year 3 Totals Initial investment Net present value
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