Question
Required information [The following information applies to the questions displayed below.] Following is information on an investment considered by Hudson Co. The investment has zero
Required information [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 6% return from its investments. Investment A1 Initial investment $ (360,000 ) Expected net cash flows in year: 1 170,000 2 104,000 3 109,000 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $20,500. 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.)
Required information (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 6% return from its investments. Investment Al $ (360,000) Initial investment Expected net cash flows in year: 170,000 104,000 109,000 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $20,500. 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 pro Round all present value factors to 4 decimal places.) Cash Flow Present Value Present Value Year 1 $ 170,000 $ of 1 at 6% 0.9434 0.8900 0.8396 Year 2 Year 3 Totals Amount invested Net present value 129,500 $ 403,500 160,378 92,560 108,728 361,666 360,000 1,666 $Step by Step Solution
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