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Pablo Company is considering buying a machine that will yield income of $3,300 and net cash flow of $18,200 per year for three years.

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Pablo Company is considering buying a machine that will yield income of $3,300 and net cash flow of $18,200 per year for three years. The machine costs $55,500 and has an estimated $10,800 salvage value. Pablo requires a 5% return on its investments. Compute the net present value of this investment. (PV of $1. FV 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.) Years 1-3 Totals Net present value Net Cash Flows x PV Factor Present Value of Net Cash Flows 0 = = =

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