The management of Weimar, Inc., a civil engineering design company, is considering an investment in a high-quality blueprint printer with the following cash flows:
|
Year
|
Investment
|
Cash Inflow
|
|
1
|
$60,000
|
$4,000
|
|
2
|
$3,000
|
$8,000
|
|
3
|
|
$16,000
|
|
4
|
|
$17,000
|
|
5
|
|
$20,000
|
|
6
|
|
$18,000
|
|
7
|
|
$16,000
|
|
8
|
|
$14,000
|
|
9
|
|
$13,000
|
|
10
|
|
$13,000
|
|
|
Required:
1. Determine the payback period of the investment. (Round your answer to 1 decimal place.)
Mountain View Hospital has purchased new lab equipment for $238,296. The equipment is expected to last for three years and to provide cash inflows as follows: (Ignore income taxes.)
|
|
|
|
|
Year 1
|
$
|
81,000
|
|
Year 2
|
$
|
89,000
|
|
Year 3
|
|
?
|
|
|
Required:
Assuming that the equipment will yield exactly a 7% rate of return, what is the expected cash inflow for Year 3? (Round discount factor(s) to 3 decimal places.)