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[The following information applies to the questions displayed below.] Following is information on an investment in a manufacturing machine. The machine has zero salvage value.

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[The following information applies to the questions displayed below.] Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 3% return from its investments. Compute this machine's net present value. (PV of \$1. EV 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. Round present value amounts to the nearest dollar.) \begin{tabular}{|l|l|l|} \hline & Net Cash Flow & \begin{tabular}{c} Present Value \\ \hline Pactor \end{tabular} \\ \hline Year 1 & & \\ \hline Year 2 & & \\ \hline Year 3 & & \\ \hline Totals & & \\ \hline Initial investment & & \\ \hline Net present value & & \\ \hline \end{tabular} Assume that instead of a zero salvage value, as shown above, the machine has a salvage value of $27,500 at the ond of its three-year life. Compute the machine's net present value. (PY. of \$1. FV of \$1. PVA of 51 , and FVA of $1 ) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar.)

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