Paul Company is considering purchasing a capital investment that is expected to provide annual cash inflows of $12,000 per year for 3 years.Assuming that the required rate of return is 10%,what is the present value of these cash inflows? (Do not round PV factors and 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 = $12,000 x 2.486852 = $29,842 (rounded)
PV factor from Appendix Table 2 (n = 3,i = 10)

Paul Company Is Considering Purchasing a Capital Investment That Is