Question

Piccadilly Hospital has purchased new lab equipment for $200,000. The equipment is expected to last for three years and to provide cash inflows as follows:
Year 1. . . . . . . . . . . . . . . . . . . . . . . . . . $60,000
Year 2 . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000
Year 3. . . . . . . . . . . . . . . . . . . . . . . . . ?
Required:
Assuming that the equipment will yield exactly a 10% rate of return, what is the expected cash inflow for year 3?


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  • CreatedJuly 08, 2015
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