Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pablo Company is considering buying a machine that will yleld income of $3,100 and net cash flow of $15,900 per year for three years. The

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Pablo Company is considering buying a machine that will yleld income of $3,100 and net cash flow of $15,900 per year for three years. The machine costs $46,800 and has an estimated $8,400 salvage value. Pablo tequires a 10% return on its investments. Compute the net present value of this investment. (PV of \$1. EV of \$1, PVA of \$1, and EVA of \$1) (Use appropriate factor(5) from the tables provided. Negative amounts should be indicated by a minus sign. Round your present value factor to 4 decimals.) Table H.1* Present Value of 1 n=1/I+in Table B2'Future Value of 1 f=(1+i) Table B.37 Present Value of an Ansuity of 1 n=11N1+inW 9% For (n =10,1=9%6), she PV factor is 6,4177,$2,000 per yeur for 10 yearn ir the equivalent of 512,835 soday ( $2,0006,4177). Table H. 4tFefure Yaue of an Annuity of 1 f=[(1+i)x1]W

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_2

Step: 3

blur-text-image_3

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

Auditing And Assurance Services With ACL CD

Authors: McGraw Hill

1st Edition

1259071200, 978-1259071201

More Books

Students also viewed these Accounting questions

Question

What are the vertex and range of y = |x + 3| + 2

Answered: 1 week ago

Question

7. Define cultural space.

Answered: 1 week ago

Question

8. Describe how cultural spaces are formed.

Answered: 1 week ago