Compute the present value of a proposed capital expenditure, using the "present value of an annuity of $1" table. (Obj. 5). A company has analyzed the expected cash flows from a capital investment and has estimated that the net cash flow after taxes should be

$12,000 per year during the asset's 10-year life. The company's desired rate of return is 1 4 percent. What is the present value of the future cash stream expected from this asset using a 14 percent discounted rate?

LO.1