Quary Company is considering an investment in machinery with the following information. The companys required rate of return is 12%. (PV of $1, FV of $1, PVA of $1, and FVA of $1)

initial investment	$ 288,000		Materials, labor, and overhead (except depreciation)	$ 62,000
Useful life	7	years	DepreciationMachinery	28,800
Salvage value	$ 28,800		Selling, general, and administrative expenses	22,000
Expected sales per year	11,000	units	Selling price per unit	$ 14

net cash flow	*	Present value of net cash flow
years 1-7
year 7 salvage

totals

initial investment

net present value