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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 9% return from its investments. Investment Al $(320,000) Initial investment Expected net cash flows in: Year 1 Year 2 130,000 122,000 113.000 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $28,000. Compute he investment's net present value. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the ables provided. Round all present value factors to 4 decimal places.) X Answer is not complete. Cash Flow Present Value Present Value of 1 at 9% 0.9709X $ 126,127 X Year 1 Year 2 Year 3 Totals Amount invested Net present value $ 130,000 122,000 129.500X $ 381,500 $ 126, 127 126, 127
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