Question

Langdon Company is considering purchasing a capital investment that is expected to provide annual cash inflows of $10,000 per year for 3 years. Assuming that Langdon's required rate of return is 8%, what is the present value of these cash inflows

Answer 1

$25,770.97

Step-by-step explanation:

The present value of cash flow can be found using a financial calculator

Cash flow for year zero = 0

Cash flow each year from year 1 to 3 =$10,000

I =8%

PV = $25,770.97

I hope my answer helps you.