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Return to question Required information [The following information applies to the questions displayed below.) A company is considering investing in a new machine that requires
Return to question Required information [The following information applies to the questions displayed below.) A company is considering investing in a new machine that requires a cash payment of $51,939 today. The machine will generate annual cash flows of $20,885 for the next three years. Assume the company uses an 7% discount rate. Compute 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.) % Answer is complete but not entirely correct. Chart Values are Based on: n = 7 % Cash Flow Select Chart Amount Present Value PV Factor 2.6245 2.6245 Annual cash flow $ 20,885 X - = $ $ 54,813 Present Value of an Annuity of 1 Immediate cash outflows (51,939) 2,874 Net present value
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