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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Exercise 13-8 Working With Net Present Value [LO3]
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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.)
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Year 1 $ 74,000Â
Year 2 $ 87,000Â
Year 3 ?Â
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Click here to view Exhibit 13B-1, to determine the appropriate discount factor(s) using table.
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Required:
Assuming that the equipment will yield exactly a 8% rate of return, what is the expected cash inflow for Year 3?
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