Question
Quary Company is considering an investment in machinery with the following information. The companys required rate of return is 14%. (PV of $1, FV of
Quary Company is considering an investment in machinery with the following information. The companys required rate of return is 14%. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment $ 204,000 Materials, labor, and overhead (except depreciation) $ 46,000 Useful life 8 years DepreciationMachinery 20,400 Salvage value $ 20,400 Selling, general, and administrative expenses 6,000 Expected sales per year 10,000 units Selling price per unit $ 12 a. Compute the investments net present value.
Compute the investments net present value. (Negative net present values should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar.)
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