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Use the following information for the Quick Study below
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 9% return from its investments. Initial investment Expected net cash flows in year: Investment A1 $(300,000) 1 2 150,000 92,000 77,000 3 QS 25-11 Net present value LO P3 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 9% Present Value Year 1 Year 2 Year 3 Totals Amount invested Net present value
Expert Solution
| Cash Flow | Present Value of 1 at 9% | Present value | |
| Year 1 | $150,000 | 0.9174 | $137,610.00 |
| Year 2 | $92,000 | 0.8417 | $77,436.40 |
| Year 3 | $77,000 | 0.7722 | $59,459.40 |
| Totals | $317,000 | $274,505.80 | |
| Amount invested | ($300,000) | ||
| Net Present value | ($25,494.20) |
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