Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The
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Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 9% return from its investments.
| Initial investment | $ (300,000) |
|---|---|
| Net cash flows: | |
| Year 1 | 135,000 |
| Year 2 | 102,000 |
| Year 3 | 113,000 |
Compute this machine’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. Round present value amounts to the nearest dollar.)
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