Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pablo Company is considering buying a machine that will yield income of $2,100 and net cash flow of $16,200 per year for three years. The

Pablo Company is considering buying a machine that will yield income of $2,100 and net cash flow of $16,200 per year for three years. The machine costs $50.400 and has an estimated $8,100 salvage value. Pablo requires a 10% return on its investments. Compute the net present value of this investniant. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your present value factor to 4 decimals.) Year 1-3 Total Net prosent value Net Cash Flows X PV Factor Present Value of Net Cash Flows Rate Periods 15 20 39 415 5% 6% 7% 8% 9% 10% 12% 113 Periods 9901 09804 0.9209 09615 094 09434 BOY 03 09612 09426 09423 09151 0.0610 0.923 0.3831 3 209515 09057 0.3626 0.92461 58890 SA 0.8219 0.8900 6 09450 0.5E.NO 08375 0.7903 07462 3 09127- 0.706 0.8131 07590 07107 TO 09235 GAS35 0.7894 0.7307 0.6768 9 09145 0.836 10.7664 07006 93003 032013 07441 0756 0.3963 04043 0.7224 12 CX834 15 OXIT 0.77301 14 03300 0.7579 0.2014 06810 0.6611 0.5775 15 030613 07430 0.649 05553 16 03528 0:7284 0.0232 0.5339 0.7142 0.6050 05134 03714 0.3166 0.9346 0.9259 09174 0.9091 0.90% 0.8734 0.8573 08417 03618 00396 08163 0.7938 07722 08227 0.7921 0.7629 0.7350 0.7064 0.7835 07473 0.7130 0.6806 05499 0.7050 0.6663 06302 0.5963 06651 06227 0.3835 06274 0.5K20 0.5403) 03019 064461 0.3919 0.5439 0,5002 0.4604 0.6139 05584 0.5083 0.4632 0.4224 0.6495 0.5847 0.5268 04751 04289 03875 06346 0.5568 0.49 0.4440 03971 0.3555 0.31861 0.2567 0.0006 0.5303 04688 04150 03677 03262 0.2897 0.2292 0.5051 04423 0.3878 03405 0.2992 0.2633 2046 04510 04173 0.3624 03152 0.2745 0.2394 0.1827 04581 0.3936 0.3387 04363 0.8264 08929 0.7972 086 0756 2 and you 0.7513 0.7118 0.6830 0.6355 0.6209 0.5674 04972 06575 3 05718 4 03645 0.5066 0.4323 6 5071 05470 0.3132 0.46651 0.4039 03269 0.4241 03606 0.3855 04523 03759 7 N 0.2843 9 0.3220 02472 10 03505 02875 0.2149 11 0.1869 12 0.1625 01413 14 0.1229 15 0.2919 0.2510 0.2176 0.56 01069 16 62203 02311 0 1978 0.1456 0.0929 17 300 0,7002 0.5874 04936 04155 19 U8373 D5864 0.5203 04746 0.3957 0.3503 03305 0.2766 0.2959 02502 02120 0.1799 0.1300 0.0808 0.2317 01945 0.1635 0.1161 9703 19 20 DALS 06730 05537 04564 0.3769 0.2564 0.2145 03781 0.1486 0.1037 0.001 20 25 6.77 06095 0.4776 03751 30 03419 05521 04120 0.3083 35 0.2009 0.5000 0.1554 0.2534 40 04717 0.4529 0306 0.20 0.2953 0.2330 02314 0.1741 0.1812 0.1301 01420 0.0972 0.1842 0.1460 03160 00923 UD588 011304 25 0.1314 00994 0.0037 0.0676 0.0568 000 754 00050 0.0318 0.0573 00334 00151 30 0.0356 00189 0.0075 0.02212 00007 0.0037 35 40 Und to cumpute the anant iar of a known

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Basic Principles Of Accounting A Guide For Toatal Beginners

Authors: Simon Udeh Andrew

1st Edition

979-8861488440

More Books