Fle Edit View History Bookmarks People Window Help Secure Chapter 24 Homework He

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Fle Edit View History Bookmarks People Window Help Secure Chapter 24 Homework Help Save&Exit; Submit Check my work 4 0 Required information 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. (360,000) Expected net cash flovs in yeari 190.000 150,000 115,000 Compute this investment's net present value. (PV of $1. FV of $1. PVA of S1, and FVAot S1 (Use appropriate factorfs) from the tables provided. Round all present value factors to 4 decimal Present Value Present Value Cash Flow of at Value 1 at 6% eferencesYear 2 Year 3 Amount invested Net present value Prex 40f 10 Next > MacBook Air 2

Explanation / Answer

Computation of Investment's NPV Cash Flow Present Value of 1 at 6% Present Value Year 1 $190,000.00 0.943396 $179,245.28 Year 2 $150,000.00 0.889996 $133,499.47 Year 3 $115,000.00 0.839619 $96,556.22 Totals $455,000.00 $409,300.97 Amount Invested $360,000.00 Net Present Value $49,300.97

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