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The Cambro Foundation, a nonprofit organization, is planning to invest $159,040 in a project that will last for three years. The project will produce net
The Cambro Foundation, a nonprofit organization, is planning to invest $159,040 in a project that will last for three years. The project will produce net cash inflows as follows: |
Year 1 | $ | 50,000 |
Year 2 | $ | 66,000 |
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 7% rate of return, what is the expected net cash inflow for Year 3? (Round discount factor(s) to 3 decimal places.) |
Present value of year 3 cash inflow/Present value factor= Cash Inflow
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