Question: Pablo Company is considering buying a machine that will yield income of $3,400 and net cash flow of $20,200 per year for three years.
Pablo Company is considering buying a machine that will yield income of $3,400 and net cash flow of $20,200 per year for three years. The machine costs $59,400 and has an estimated $9,000 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) 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 Totals Net present value Present Value of Net Cash Flows X PV Factor = Net Cash Flows 0 II = II II II 0
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