Question
Exercise 13-12 Uncertain Cash Flows [LO13-4] The Cambro Foundation, a nonprofit organization, is planning to invest $104,950 in a project that will last for three
Exercise 13-12 Uncertain Cash Flows [LO13-4]
The Cambro Foundation, a nonprofit organization, is planning to invest $104,950 in a project that will last for three years. The project will produce net cash inflows as follows:
| Year 1 | $ | 30,000 |
| Year 2 | $ | 40,000 |
| 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 12% rate of return, what is the expected net cash inflow for Year 3?
Net cash flows = ?
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Sm Auditing Integrated Appr Review Copy
Authors: ARENS LO, EBBECKE
7th Edition
0135914396, 978-0135914397
