Question: Pablo Company is considering buying a machine that will yield income of $2,000 and net cash flow of $17,600 per year for three years.

Pablo Company is considering buying a machine that will yield income of

Pablo Company is considering buying a machine that will yield income of $2,000 and net cash flow of $17,600 per year for three years. The machine costs $58,500 and has an estimated $11,700 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 the tables provided. Negative amounts should be indicated by a minus sign. Round your present value factor to 4 decimals.) Years 1-3 Totals Net present value Net Cash Flows PV Factor Present Value of Net Cash Flows =

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