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? Use Appendix Table 2. (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 × PV factor)
Net present value = $10,000 × 2.577097= $25,771 (rounded)
PV factor (n = 3, i = 8)

Langdon Company Is Considering Purchasing a Capital Investment That Is