Question: Pablo Company is considering buying a machine that will yield income of $2,400 and net cash flow of $19,400 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 $2,400 and net cash flow of $19,400 per year for three years. The machine costs $59,700 and has an estimated $8,700 salvage value. Pablo requires a 10% 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.) Yours 1-3 Year 3 salvage Totals Initial investment Net present value Not Cash Flows PV Factor Present Value of Net Cash Flows $ 0

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