Question: Pablo Company is considering buying a machine that will yield income of $2,300 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 $2,300 and net cash flow of $17,600 per year for three years. The machine costs $56,100 and has an estimated $10,200 salvage value. Pablo requires a 15% 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 Present Value of Net Cash Flows x PV Factor Net Cash Flows 0 = = = 0

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