Question
The Cambro Foundation, a nonprofit organization, is planning to invest $156,420 in a project that will last for three years. The project will produce net
The Cambro Foundation, a nonprofit organization, is planning to invest $156,420 in a project that will last for three years. The project will produce net cash inflows as follows: Year 1 $ 60,000
Year 2 $ 70,000
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 9% rate of return, what is the expected net cash inflow for Year 3? |
choose numerator / choose denominator = cash flow
present value of year 3 cash inflow / present value factor = cash inflow
? 0.772 = ?
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