Botak's Co. has additional funds available for investment, and is considering purchasing an asset that is expected to provide an after-tax cash inflow of $75,000 per year for the next 15 years, with no residual value. Botak Co.'s required rate of return is 13%.
What is the maximum amount that Botak Co. would be willing to pay to purchase this asset? (Use a financial spreadsheet or a financial calculator to answer this question.)

Question

Botak's Co. has additional funds available for investment, and is considering purchasing an asset that is expected to provide an after-tax cash inflow of $75,000 per year for the next 15 years, with no residual value. Botak Co.'s required rate of return is 13%. 
What is the maximum amount that Botak Co. would be willing to pay to purchase this asset? (Use a financial spreadsheet or a financial calculator to answer this question.)

Quizplus · Accepted Answer

The Answer of Botak's Co. has additional funds available for investment, and is considering purchasing an asset that is expected to provide an after-tax cash inflow of $75,000 per year for the next 15 years, with no residual value. Botak Co.'s required rate of return is 13%. 
What is the maximum amount that Botak Co. would be willing to pay to purchase this asset? (Use a financial spreadsheet or a financial calculator to answer this question.)