Compute the present value of a proposed capital expenditure, using the "present value of an annuity of $1" table. (Obj. 5).

Domino Manufacturing Corporation has prepared a schedule showing expected after-tax net cash flows during each year of life of a proposed capital investment. The analysis shows that the cash flow each year for 10 years from the date of the acquisition of the asset should be

$22,000. Assuming that the company has established a desired timeadjusted rate of return of 10 percent after taxes, what is the present value of the $22,000, discounted at 10 percent per year?

LO.1