Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ompany is considering a $162,000 investment in machinery with the following net cash flows. The company requires 10% on its investments. PV of $1.
ompany is considering a $162,000 investment in machinery with the following net cash flows. The company requires 10% on its investments. PV of $1. EV of $1 PVA of St and EVA of 5) (Use appropriate factors from the tables provided) Net Cash Flow $10,000 Year 2 $28,000 Year 3 $53,000 Years $41,000 (a) Compute the net present value of this investment (b) Should the machinery be purchased? Answer is not complete Complete this question by entering your answers in the tabs below. Required A Required Compute the net present value of this investment. (Round your present value factor to your the nearest whole dollar) Year Nel Cash Flows Present Present Val Value of Net Cash Factor Flows Year 1 is 10.000 O 00000 9.000 Year 2 28,000 08200 O 23.120 Year 3 $3,000 07510 O 3800 Year 4 41,000 O 06830- 28.003 Year 5 100,000 06210 7,480 Totals $241,000 167713 162.000 Initial investment Net present $ 5,713 value
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started