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Mountain View Hospital has purchased new lab equipment for $134,650. The equipment is expected to last for three years and to provide cash inflows as

Mountain View Hospital has purchased new lab equipment for $134,650. The equipment is expected to last for three years and to provide cash inflows as follows:

Year 1. . . . . . . . . . . $45,000

Year 2. . . . . . . . . . . $60,000

Year 3. . . . . . . . . . . ?

Required: (Ignore income taxes.)

Assuming that the equipment will yield exactly a 16% rate of return, what is the expected cash inflow for Year 3?

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