Riverbed Company is considering purchasing equipment. The equipment will produce the following cash inflows: Year 1, 20,000; Year 2, 25,000; and Year 3, $35,000. Riverbed requires a minimum rate of return of 10%. What is the maximum price Riverbed 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 10%, using Table 3.

Year 1:

Year 2:

Year 3:

Present Value of future cash flows: