Question: Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] Following is information on an

 Required information 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

Required information 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 6% return from its investments. Investment A1 Initial investment $(390,000) Expected net cash flows in: Year 1 105,000 Year 2 138,000 Year 3 77,000 Compute this 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.) Cash Flow Present Value of 1 at 6% Present Value Year 1 Year 2 Year 3 Totals Amount invested Not present value $ g $ 0 $ 0 Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $25,500. Compute the investment's net present value. (PV of $1. EV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places.) Cash Flow Present Value of 1 at 6% Present Value Year 1 Year 2 Year 3 Totals Amount invested Net present value $ 0 $ 0 $ 0

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