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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

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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 9% return from its investments. Initial investment Expected net cash flows in year: Investment Al $(370,000) 2 3 125,000 108,000 119,000 QS 25-11 Net present value LO P3 Compute this 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 of 1 at 9% Present Value Year 1 Year 2 Year 3 Totals Amount invested Net present value $ 0 $ 0 $ 0 Investment Al $(370,000) Initial investment Expected net cash flows in year: 1 2 3 125,000 108,000 119,000 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 $27,000. 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 9% Year 1 Year 2 Year 3 Totals Amount invested Net present value $ 0 $ 0 $ 0

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