Langdon Company is considering purchasing a capital investment that is expected to provide annual cash inflows of $10,000 per year for 3 years.Assuming that Langdon's required rate of return is 8%,what is the present value of these cash inflows? (Do not round your intermediate calculations.Round your final answer to the nearest dollar. )

Question

Quizplus · Accepted Answer

Revised estimate:
Net present value = (Expected cash flows x PV factor)
Net present value = $10,000 x 2.577097= $25,771 (rounded)
PV factor from Appendix Table 2 (n = 3,i = 8)

Langdon Company Is Considering Purchasing a Capital Investment That Is