Question: Pablo Company is considering buying a machine that will yield income of $2,700 and net cash flow of $16,600 per year for three years. The

Pablo Company is considering buying a machine that will yield income of $2,700 and net cash flow of $16,600 per year for three years. The machine costs $51,300 and has an estimated $9,600 salvage value. Pablo requires a 5% return on its investments. Compute the net present value of this investment. (PV of $1, EV 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.) Net Cash Flows PV Factor Present Value of Net Cash Flows Years 1-3 $ 16,600 x $ 0 Year 3 salvage Totals $ 9,600 x 0 Initial investment Net present value

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