Exercise 13-8 Working With Net Present Value [LO3]

Mountain View Hospital has purchased new lab equipment for $174,843. The equipment is expected to last for three years and to provide cash inflows as follows: (Ignore income taxes.)

Year 1 $ 74,000

Year 2 $ 87,000

Year 3 ?

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Click here to view Exhibit 13B-1, to determine the appropriate discount factor(s) using table.

Required:

Assuming that the equipment will yield exactly a 8% rate of return, what is the expected cash inflow for Year 3?

Exercise 13-8 Working With Net Present Value [L03] Mountain View Hospital has purchased new leis equipment for $1?4.43. The equipment is expected to last for three years and to provide cash inows as follows: [Ignore income taxes.) Year 1 $ T4,!'J Year 2 $ arpcc Year 3 '? Click here to view Exhibit 135-1, to determine the appropriate discount factort's} using table. Requlred: Assu ming that the equipment will yield exactly a 8% rate of retum, what is the expected cash inflow for "fear 3? [Round discount factor[s] to 3 decimal places, intermediate and final answers to the nearest dollar amount. Omit the "5" sign in your response.) Expectedceehi'rowforyeer s|:|