Vault Company wants to purchase an asset with a 3-year useful life, which is expected to produce cash inflows of $10,000 each year for two years, and $15,000 in year 3.Vault has a 14% cost of capital, and uses the following factors.What is the present value of these future cash flows?
A) $30,800
B) $30,400
C) $26,550
D) $34,750
Correct Answer:
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