Goltra Company is considering purchasing equipment. The equipment will produce the following cash inflows: Year 1, $30,000;

Question:

Goltra Company is considering purchasing equipment. The equipment will produce the following cash inflows: Year 1, $30,000; Year 2, $40,000; Year 3, $50,000. Goltra requires a minimum rate of return of 12%.What is the maximum price Goltra should pay for this equipment?