Year 1 Year 2.... Year 3 $30,000 $40,000

Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.7BE
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Uncertain Cash Flows

The Cambro Foundation, a nonprofit organization, is planning to invest $104,950 in a project that will last for three years. The project will produce net cash inflows as follows:

Required:

Assuming that the project will yield exactly a 12% rate of return, what is the expected net cash inflow for Year 3?

Year 1
Year 2....
Year 3
$30,000
$40,000
Transcribed Image Text:Year 1 Year 2.... Year 3 $30,000 $40,000
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