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Required information [The following information applies to the questions displayed below.) Park Co. is considering an investment that requires immediate payment of $27,000 and provides
Required information [The following information applies to the questions displayed below.) Park Co. is considering an investment that requires immediate payment of $27,000 and provides expected cash inflows of $9,000 annually for four years. Park Co. requires a 10% return on its investments. 1-a. 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.) Cash Flow Select Chart Amount PV Factor = Present Value Annual cash flow Future Value of an Annuity of 1 9,000 x 3.1699 II = $ Immediate cash outflows 28,529 27,000 1,529 Net present value $ 1-b. Based on NPV alone, should Park Co. invest? Yes O No
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