Question: Pablo Company is considering buying a machine that will yleld income of $3,100 and net cash flow of $15,900 per year for three years. The



Pablo Company is considering buying a machine that will yleld income of $3,100 and net cash flow of $15,900 per year for three years. The machine costs $46,800 and has an estimated $8,400 salvage value. Pablo tequires a 10% return on its investments. Compute the net present value of this investment. (PV of \$1. EV of \$1, PVA of \$1, and EVA of \$1) (Use appropriate factor(5) from the tables provided. Negative amounts should be indicated by a minus sign. Round your present value factor to 4 decimals.) Table H.1* Present Value of 1 n=1/I+in Table B2'Future Value of 1 f=(1+i) Table B.37 Present Value of an Ansuity of 1 n=11N1+inW 9% For (n =10,1=9%6), she PV factor is 6,4177,$2,000 per yeur for 10 yearn ir the equivalent of 512,835 soday ( $2,0006,4177). Table H. 4tFefure Yaue of an Annuity of 1 f=[(1+i)x1]W
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