Question: Please help. It's saying 79,000 is wrong for Year 3 and 72,293. I don't know why. Thanks! Use the following information for the Quick Study
Use the following information for the Quick Study below. The following information applies to the questions displayed below.) Following is information on an investment considered by Hudson Co. The investment has zero salvage value. The company requires a 3% return from its investments. Investment Al Initial investment $(390,000) Expected net cash flows in: Year 1 175,000 110,000 Year 3 79,000 Year 2 QS 11-12 Net present value, with salvage value LO P3 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $33,500. Compute the investment's net present value. (PV of $1. FV of $1. PVA of $1. and FVA of $1 (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Year 1 Year 2 Year 3 Totais Amount invested Net present value Cash Flow Present Value of 1 Present Value at 3% S 175,000 0.9709 s 169,908 110,000 0.9426 103,686 79,000 0.9151 72,293 S 364,000 $ 345,887 (390,000) $ (44.113)
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