A company is considering a $181,000 investment in machinery with the following net cash flows....
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A company is considering a $181,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Net Cash Flow | $11,000 | $31,000 | $60,000 | $45,000 | $121,000 |
Compute the net present value of this investment. Should the machinery be purchased?
Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.)
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