Snyder Company is considering purchasing equipment. The equipment will produce the following cash inflows: Year 1, $25,000;

Question:

Snyder Company is considering purchasing equipment. The equipment will produce the following cash inflows: Year 1, $25,000; Year 2, $30,000; and Year 3, $40,000. Snyder requires a minimum rate of return of 11%. What is the maximum price Snyder should pay for this equipment?