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! Required information Use the following information for the Quick Study below. (The following information applies to the questions displayed below.) Following is information on
! Required information Use the following information for the Quick Study below. (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. Initial investment Expected net cash flows in year: Investment Al $(370,000) 1 2 3 150,000 116,000 107,000 QS 25-12 Net present value, with salvage value LO P3 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $35,000. 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.) Cash Flow Present Value Present Value of 1 at 6% Year 1 Year 2 Year 3 Totals $ 0 $ 0 Amount invested Net present value $ 0
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