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 $ (300,000)
Expected net cash flows in year:
1 110,000
2 106,000
3 87,000
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 $0 $0
Amount invested
Net present value $0
Assume that instead of a zero salvage value, as shown above, the investment has a salvage value of $21,500. 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.)
Cash Flow Present Value of 1 at 6% Present Value
Year 1
Year 2
Year 3
Totals $0 $0
Amount invested
Net present value $0
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 06:00, kinglightskin2k
If you miss two payments on a credit card what is generally the penalty
Answers: 1
Business, 22.06.2019 20:40, julio38
If the ceo of a large, diversified, firm were filling out a fitness report on a division manager (i. e., "grading" the manager), which of the following situations would be likely to cause the manager to receive a better grade? in all cases, assume that other things are held constant. a. the division's basic earning power ratio is above the average of other firms in its industry. b. the division's total assets turnover ratio is below the average for other firms in its industry. c. the division's debt ratio is above the average for other firms in the industry. d. the division's inventory turnover is 6, whereas the average for its competitors is 8.e. the division's dso (days' sales outstanding) is 40, whereas the average for its competitors is 30.
Answers: 1
Business, 22.06.2019 21:10, stephany94
You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i. e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?
Answers: 1
Business, 22.06.2019 22:30, jyworthy
Ski powder resort ends its fiscal year on april 30. the business adjusts its accounts monthly, but closes them only at year-end (april 30). the resort's busy season is from december 1 through march 31. adrian pride, the resort's chief financial officer, the museums a close watch on lift ticket revenue and cash. the balances of these accounts at the end of each of the last five months are as follows:
Answers: 3
You know the right answer?
Following is information on an investment considered by Hudson Co. The investment has zero salvage v...
Questions in other subjects:
Chemistry, 06.10.2019 17:30
Health, 06.10.2019 17:30
Mathematics, 06.10.2019 17:30
