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Blue Company is considering purchasing equipment. The equipment will produce the following cash inflows: Year 1, 32,000; Year 2, 37,000; and Year 3, $47,000. Blue
Blue Company is considering purchasing equipment. The equipment will produce the following cash inflows: Year 1, 32,000; Year 2, 37,000; and Year 3, $47,000. Blue requires a minimum rate of return of 7%. What is the maximum price Blue should pay for this equipment? (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (Round answer to 2 decimal places, e.g. 5,275.50.) To determine the present value of the future cash flows, discount the future cash flows at 7%, using Table 3. Click here to view the factor table. Year 1 Year 2 Year 3 Present value of future cash flows $
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