Pena Company is considering an investment of $30,490 that provides net cash flows of $8,800 annually...

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Pena Company is considering an investment of $30,490 that provides net cash flows of $8,800 annually for four years. (a) if Pena Company requires a 5% return on its Investments, what is the net present value of this investment? (PV of $1. EV of $1. PVA of $1, and EVA of 5) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A Required What is the net present value of this investment? Present Value of Met Cash Flows M PV Factor Net Cash Flow Years 1-41 $ Nat present value CPA Required B > QS 24-14 (Algo) Net present value of an annuity LO P3 Pena Company is considering an investment of $30,490 that provides net cash flows of $8,800 annually for four years. (a) If Pena Company requires a 5% return on its investments, what is the net present value of this investment? (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A Required B Based on net present value, should Pena Company make this investment? Based on net present value, should Pena Company make this investment? Pena Company is considering an investment of $30,490 that provides net cash flows of $8,800 annually for four years. (a) if Pena Company requires a 5% return on its Investments, what is the net present value of this investment? (PV of $1. EV of $1. PVA of $1, and EVA of 5) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A Required What is the net present value of this investment? Present Value of Met Cash Flows M PV Factor Net Cash Flow Years 1-41 $ Nat present value CPA Required B > QS 24-14 (Algo) Net present value of an annuity LO P3 Pena Company is considering an investment of $30,490 that provides net cash flows of $8,800 annually for four years. (a) If Pena Company requires a 5% return on its investments, what is the net present value of this investment? (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A Required B Based on net present value, should Pena Company make this investment? Based on net present value, should Pena Company make this investment?

Answer rating: 100% (QA)

Calculate the net present value NPV of the investment we need to discount t... View the full answer