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Hi I need help with this please! A company is considering a $161,000 investment in machinery with the following net cash flows. The company requires
Hi I need help with this please!
A company is considering a $161,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Net Cash Flow $10,000 $27,000 $53,000 $108,000 (a) Compute the net present value of this investment. (b) Should the machinery be purchased? $40,000 Complete this question by entering your answerstin 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) Year Net Cash Flows Present Value Factor Present Value of Net Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial Investment Net present value $ 0 $ 0 $ 0 Step by Step Solution
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