Project Y requires a $327,000 investment for new machinery with a four-year life and no...
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Accounting
Project Y requires a $327,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Annual Amounts
Project Y
Sales of new product
$ 370,000
Expenses
Materials, labor, and overhead (except depreciation)
165,760
DepreciationMachinery
81,750
Selling, general, and administrative expenses
26,000
Income
$ 96,490
Problem 24-2A (Algo) Part 4
4. Determine Project Ys net present value using 7% as the discount rate. (Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar.)
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