9.- Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his divisions return on investment (ROI), which has been above 20% each of the last three years. Derrick is considering a capital budgeting project that would require a $3,080,000 investment in equipment with a useful life of five years and no salvage value. Holston Companys discount rate is 17%. The project would provide net operating income each year for five years as follows:

Sales		$	2,700,000
Variable expenses			1,100,000
Contribution margin			1,600,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$620,000
Depreciation	620,000
Total fixed expenses			1,240,000
Net operating income		$	360,000

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.

10.-

The Cambro Foundation, a nonprofit organization, is planning to invest $174,843 in a project that will last for three years. The project will produce net cash inflows as follows:

Year 1	$	74,000
Year 2	$	87,000
Year 3		?

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table.

Required:

Assuming that the project will yield exactly a 8% rate of return, what is the expected net cash inflow for Year 3? (Round discount factor(s) to 3 decimal places.)