a Pablo Company is considering buying a machine that will yield income of $2,000 and net cash flow of $16,300 per year for threeyears. The machine costs $54,900 and has an estimated $12,000 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 thetables provided. Negative amounts should be indicated by a minus sign. Round your present value factor to 4 decimals.)Years 1-3TotalsNet present valueNet Cash FlowsxPV Factor"Present Value ofNet Cash Flows

Net present value is the present value of cash flow minus initial investment.

Pablo Company is considering buying a machine that will yield income of $2,000 and net cash flow of $16,300 per year for three years. The machine costs $54,900 and has an estimated $12,000 salvage value. Pablo requires a 5% return on its investments. Compute the net present value of this investment. (PV of $1. EV of $1, PVA of $1, and EVA of S1) (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.) Net Cash Flows xPV Factor Years 1-3 Totals Net present value . Present Value of Net Cash Flows

Pablo Company is considering buying a machine that will yield income of $2,000 and net cash flow of $16,300 per year for three years. The machine costs $54,900 and has an estimated $12,000 salvage value. Pablo requires a 5% return on its investments. Compute the net present value of this investment. (PV of $1. EV of $1, PVA of $1, and EVA of S1) (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.) Net Cash Flows xPV Factor Years 1-3 Totals Net present value . Present Value of Net Cash Flows

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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