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Help Save & Ext Submin A company is considering a $154,000 investment in machinery with the following net cash flows. The company requires a 10%
Help Save & Ext Submin 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. (PVOLS. EV of $1. PVA of $1. and EVA of S1) (Use appropriate factor(s) from the tables provided.) Net Cash Flow Year 1 $9,000 Year 2 $26,000 (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Year 3 $51,000 Tear 4 $39,000 Year 5 $103,000 Complete this question by entering your answers in the tabs below. Required 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.) Net Cash Year Flows Present Value Factor Present Value of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Required 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.) Present Value of Year Net Cash Flows Present Value Factor Net Cash Flows Year 11 Year 2 Year 31 Year 4 Totals Year 5 Initial investment Net present value Required A Required B > Required A Requin B Should the machinery be purchased? Should the machinery be purchased? < Required A
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