What is the maximum amount should be pay for new asset

Question

Asset Purchase Price

Response to the following problem:

BWP, Inc., is considering the purchase of an asset. BWP's required rate of return on new assets is 12%. The expected net cash inflows generated by the new asset are as follows:

Years            Amount                  Nature of the Cash Inflows

1-4               $3,000                    Net operating revenues

5-9               2,500                      Net operating revenues

10                 2,000                     Net operating revenues

10                 1,000                      Sale of asset

Required

Given that the net cash inflows can be realized, what is the maximum amount BWP should be willing to pay for the new asset? Assume that each cash inflow occurs at the end of the year.