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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 investments.
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. QS 24-20 (Algo) Net present value with uneven cash flows and salvage value LO P3 Assume that instead of a zero salvage value, as shown above, the machine has a salvage value of $29,500 at the end of its three-year ife. Compute the 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.) Assume that instead of a zero salvage value, as shown above, the machine has a salvage value of $29,500 at the end of its three-year life. Compute the 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.)
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