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S 11-17 (Algo) Net present value of annuity and salvage value LO P3 Pablo Company is considering buying a machine that will yield income of
S 11-17 (Algo) Net present value of annuity and salvage value LO P3 Pablo Company is considering buying a machine that will yield income of $2,900 and net cash flow of $16,000 per year for three years. The machine costs $46,200 and has an estimated $6,900 salvage value. Pablo requires a 5% return on its investments. 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. Negative amounts should be indicated by a minus sign. Round your present value factor to 4 decimals.) Years 1-3 Totals Net present value Present Value of Net Cash Flows x PV Factor Net Cash Flows
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