Question
Pena Company is considering an investment of $30,485 that provides net cash flows of $9,000 annually for four years. (a) If Pena Company requires a
Pena Company is considering an investment of $30,485 that provides net cash flows of $9,000 annually for four years.
(a) If Pena Company requires a 6% return on its investments, what is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA 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?
What is the net present value of this investment?
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Based on net present value, should Pena Company make this investment?
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