Miller Company is considering an investment opportunity with the following expected net cash inflows: Year 1, $255,000; Year 2, S190,000; Year 3, 595,000. The company uses a discount rate of 7% and the initial investment is $335,000. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Calculate the NPV of the investment. Should the company invest in the project? Why or why not? ... Use the following table to calculate the net present value of the project. (Enter any factor amounts to three decimal places, X.XXX.) Net Cash PV Factor (i Years Inflow = 7%) Present Value $ 255,000 0.935 $ Year 1 Present value of each year's inflow: (n = 1) 238,425 Year 2 Present value of each year's inflow: (n = 2) 190,000 0.873 165,870 Year 3 Present value of each year's inflow: (n = 3) 0.816 77.520 Total PV of cash inflows 481,815 (335,000) Year 0 Initial investment $ 146,815 Net present value of the project 95,000 Using the NPV as the basis of its decision, Miller Company should consider the investment because its NPV is positive This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. Help Me Solve This DemoDocs Example Get More Help Similar Question n - Reference is ch CO PV 1% 2% 0.990 0.980 1.970 1.942 2.941 2.884 3.902 3.808 4.853 4.713 3% 0.971 1.913 2.829 3.717 4.580 4% 0.962 1.886 2.775 3.630 4.452 Present Value of Ordinary Annuity of $1 5% 6% 7% 8% 9% 10% 0.952 0.943 0.935 0.926 0.917 0.909 1.859 | 1.833 | 1.808 1.783 1.759 1.736 2.723 2.673 2.624 2.577 2.531 2.487 3.546 3.465 3.387 3.312 3.240 3.170 4.329 4.212 4.100 3.993 3.890 3.791 12% 14% 15% 0.893 0.877 0.870 1.690 1.647 1.626 2.402 2.322 2.283 3.037 2.914 2.855 3.605 3.433 3.352 16% 0.862 1.605 2.246 2.798 3.274 18% 20% 0.847 0.833 1.566 1.528 2.174 2.106 2.690 2.589 3.127 2.991 nd Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 Period 19 Insried an 5.795 5.601 6.728 6.472 7.652 7.325 8.566 8.162 9.471 8.983 5.417 6.230 7.020 7.786 8.530 5.242 5.076 4.917 4.767 6.002 5.786 5.582 5.389 6.733 6.463 6.210 5.971 7.435 7.108 6.802 6.515 8.111 7.722 7.360 7.024 4.623 4.486 4.355 5.206 5.033 4.868 5.747 5.535 5.335 6.247 5.995 5.759 6.710 6.418 6.145 3.685 4.039 4.344 4.607 4.833 3.498 3.326 3.812 3.605 4.0783.837 4.303 4.031 4.494 4.192 n n 4.111 3.889 3.784 4.564 4.288 4160 4.968 4.639 4.487 5.328 4.946 4.772 5.650 5.216 5.019 5.938 5.453 5.234 6.194 5.660 5.421 6.424 5.842 5.583 6.628 6.002 5.724 6.811 6.142 5.847 10.368 | 9.787 9.253 8.760 8.306 7.887 7.499 11.255 10.575 9.954 9.385 8.863 8.384 7.943 12.134 11.348 10.635 | 9.986 9.394 8.853 8.358 13.004 12.106 11.296 | 10.563 9.899 9.295 8.745 13.865 12.849 11.938 11.118 10.380 9.712 9.108 7.139 6.805 6.495 7.536 7.161 6.814 7.904 7.487 7.103 8.244 7.786 7.367 8.559 8.061 7.606 5.029 4.656 4.327 5.197 4.793 4.439 5.342 4.910 4.533 5.468 5.0084.611 5.575 5.092 4.675 rel 14.718 13.578 12.561 | 11.652 10.838 10.106) 9.447 8.851 8.313 7.824 6.974 6.265 15.562 14.292 13.166 | 12. 166 11.27410.4771 9.763 9.122 8.544 8.022 7.1206.373 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.3728.756 8.201 7.250 6.467 17.226 15.678 | 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 40251 4. con le 1701 7 AGO 5.954 6.047 6.128 6.198 enco 5.669 5.749 5.818 5.877 CO 5.1624.730 5.222 4.775 5.273 4.812 5.316 4.844 107 A.4 el Print Done olva mis DEMODOC Laampic UCL MIOT TICIP VICA Reference Present Value of $1 6% 0.943 0.890 0.840 0.792 0.747 7% 0.935 0.873 0.816 0.763 0.713 8% 0.926 0.857 0.794 0.735 0.681 9% 10% 12% 14% 15% 0.917 0.909 0.893 0.877 0.870 0.842 0.826 0.797 0.769 0.756 0.772 0.751 0.712 0.675 0.658 0.708 0.683 0.636 0.592 0.572 0.650 0.621 0.567 0.519 0.497 16% 18% 20% 0.862 0.847 0.833 0.743 0.7180.694 0.641 0.609 0.579 0.552 0.516 0.482 0.476 0.437 0.402 Periods 1% 2% 3% 4% 5% Period 1 0.990 0.980 0.971 0.962 0.952 Period 2 0.980 0.961 0.943 0.925 0.907 Period 3 0.971 0.942 0.915 0.889 0.864 Period 4 0.961 0.924 0.888 0.855 0.823 Period 5 0.951 0.906 0.863 0.822 0.784 Period 6 0.942 0.888 0.837 0.790 0.746 Period 7 0.933 0.871 0.813 0.7600.711 Period 8 0.923 0.853 0.789 0.731 0.677 Period 9 0.914 0.837 0.766 0.703 0.645 Period 10 0.905 0.820 0.744 0.676 0.614 Period 11 0.896 0.804 0.722 0.650 0.585 Period 12 0.887 0.788 0.701 0.625 0.557 Period 13 0.879 0.773 0.681 0.601 0.530 Period 14 0.870 0.758 0.661 0.577 0.505 Period 15 0.861 0.743 0.642 0.555 0.481 Period 16 0.853 0.7280.623 0.534 0.458 Period 17 0.844 0.714 0.605 0.513 0.436 Period 18 0.836 0.700 0.587 0.494 0.416 Period 19 0.828 0.686 0.570 0.475 0.396 Inarindan Io non lo7 0.705 0.665 0.627 0.592 0.558 0.666 0.623 0.582 0.544 0.508 0.410 0.370 0.335 0.354 0.314 0.279 0.305 0.266 0.233 0.263 0.225 0.194 0.227 0.191 0.162 0.527 0.497 0.469 0.442 0.417 0.475 0.444 0.415 0.388 0.362 0.630 0.596 0.564 0.507 0.456 0.432 0.583 0.547 0.513 0.452 0.400 0.376 0.540 0.502 0.467 0.404 0.351 0.327 0.500 0.460 0.424 0.361 0.308 0.284 0.463 0.422 0.386 0.322 0.270 0.247 0.429 0.388 0.350 0.287 0.237 0.215 0.397 0.356 0.319 0.257 0.208 0.187 0.368 0.326 0.290 0.229 0.182 0.163 0.340 0.299 0.263 0.205 0.1600.141 0.315 0.275 0.239 0.183 0.140 0.123 0.292 0.252 0.218 0.163 0.123 0.107 0.270 0.231 0.1980.146 0.108 0.093 0.250 0.212 0.180 0.130 0.095 0.081 0.232 0.1940.164 0.116 0.083 0.070 0170 140 0.195 0.168 0.145 0.125 0.108 0.162 0.135 0.1370.112 0.116 0.093 0.099 0.078 0.084 0.065 0.071 0.054 0.060 0.045 0.051 0.038 0.043 0.031 0.394 0.371 0.350 0.331 0.339 0.317 0.296 0.277 ACO 0.093 0.080 0.069 0.060 61 OCCA Print Done