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Part 1 of 2 Require nformation Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Following
Part 1 of 2 Require nformation Use the following information for the Quick Study below. [The following information applies to the questions displayed below.) Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 3% return from its investments. 1.25 points Investment A1 $(320,000) Initial investment Expected net cash flows in year: eBook 1 2 3 175,000 144,000 87,000 TOT Hint Print QS 25-11 Net present value LO P3 Compute this investment's net present value. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Cash Flow Present Value of 1 at 3% Present Value $ 175,000 Year 1 Year 2 Year 3 Totals Amount invested Net present value $ 175,000 $ 0 $ 0 Part 2 of 2 Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 3% return from its investments. 1.25 points Investment A1 $(320,000) eBook Initial investment Expected net cash flows in year: 1 2 3 00 175,000 144,000 87,000 Hint Print QS 25-12 Net present value, with salvage value LO P3 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $30,500. Compute the investment's net present value. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Cash Flow Present Value of 1 at 3% Present Value Year 1 Year 2 Year 3 Totals Amount invested Net present value $ $ 0
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