QS 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 $2.700 and net cash flow of $16,700 per year for three years The machine costs $51,000 and has an estimated $9,000 salvage value. Pablo requires a 10% return on Its Investments. Compute the net present value of this Investment. (PV of $1. EV of $1. PVA of $1, and EVA of $D Note: 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 Year 3 salvage Totals India investment Net present value Answer is not complete. PV Factor Net Cash Flows S OS 16,700 0.000 X 3 Present Value of Net Cash Flows 0 0

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Chapter26: Capital Investment Analysis
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QS 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 $2.700 and net cash flow of $16,700 per year for three years.
The machine costs $51,000 and has an estimated $9.000 salvage value. Pablo requires a 10% return on Its Investments. Compute the
net present value of this Investment (PV of $1. FV of $1. PVA of S1, and EVA of $1
Note: 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
Year 3 salvage
Totals
Initial investment
Net present value
Answer is not complete.
Net Cash Flows
16,700
$
0.000x
PV
Factor
>
Present Value
of Net Cash
Flows
0
Transcribed Image Text:QS 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 $2.700 and net cash flow of $16,700 per year for three years. The machine costs $51,000 and has an estimated $9.000 salvage value. Pablo requires a 10% return on Its Investments. Compute the net present value of this Investment (PV of $1. FV of $1. PVA of S1, and EVA of $1 Note: 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 Year 3 salvage Totals Initial investment Net present value Answer is not complete. Net Cash Flows 16,700 $ 0.000x PV Factor > Present Value of Net Cash Flows 0
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