Pena Company is considering an investment of $29,480 that provides net cash flows of $8,900 annually for four years. (a) If Pena Company requires a 7% return on its investments, what is the net present value of this investment? (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A Required 6 What is the net present value of this investment? PV Factor Years 1-4 Net present value Net Cash Flows Required A = Present Value of Net Cash Flows Required B >
Pena Company is considering an investment of $29,480 that provides net cash flows of $8,900 annually for four years. (a) If Pena Company requires a 7% return on its investments, what is the net present value of this investment? (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A Required 6 What is the net present value of this investment? PV Factor Years 1-4 Net present value Net Cash Flows Required A = Present Value of Net Cash Flows Required B >
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 4MAD
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