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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
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 3% return from its investments. Investment A1 $ (300,000) Initial investment Expected net cash flows in year: 1 2 3 195,000 90,000 79,000 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 $33,000. 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 of 1 at 3% Present Value Year 1 Year 2 Year 3 Totals Amount invested Net present value
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