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Pena Company is considering an investment of $29,160 that provides net cash flows of $9,200 annually for four years. (a) If Pena Company requires
Pena Company is considering an investment of $29,160 that provides net cash flows of $9,200 annually for four years. (a) If Pena Company requires a 8% return on its investments, what is 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. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A Required B What is the net present value of this investment? Net Cash Flows PV Factor Present Value of Net Cash Flows Years 1-4 $ 9,200 x $ 0 Net present value
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