Pena company is considering an investment of $20,957 that provides net cash flows of $6900 annually for four years. Pena Company is considering an investment of $20,957 that provides net cash flows of $6,900 annually for four years.(a) If Pena Company requires a 9% return on its investments, what is the net present value of this investment? (PV of $1, FV of $1. PVAof $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.)(b) Based on net present value, should Pena Company make this investment?earchComplete this question by entering your answers in the tabs below.Required AWhat is the net present value of this investment?Years 1-4Required BNet present valueNet Cash FlowsO EtXBPPV FactorRequired< PrevPresent Value ofNet Cash Flows$FIS0nRequired B >6 of 16 wwwDELLNext >KA Weather alert opedBookMcGrawHillPena Company is considering an investment of $20,957 that provides net cash flows of $6,900 annually for four years.(a) If Pena Company requires a 9% return on its investments, what is the net present value of this investment? (PV of $1. FV of $1. PVAof $1, and FVA 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.be here to searchRequired A Required BBased on net present value, should Pena Company make this investment?Based on net present value, should Pena Company make this investment?Et< Required ABP< PrevFIS6 of 16DELLNext >76°F Sunny

Net Present Value(NPV) is a financial metric that is used to evaluate the potential investment…

(a) If Pena Company requires a 9% return on its investments, what is the net present value of this investment? (PV of $1. FV of $1. PVA of $1, and FVA 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?

(a) If Pena Company requires a 9% return on its investments, what is the net present value of this investment? (PV of $1. FV of $1. PVA of $1, and FVA 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?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 13E: Buena Vision Clinic is considering an investment that requires an outlay of 600,000 and promises a...

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