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Lane Company is considering purchasing a capital investment that is expected to provide annual cash inflows...

Lane Company is considering purchasing a capital investment that is expected to provide annual cash inflows of $11,600 per year for 3 years. Assuming that the required rate of return is 9%, what is the present value of these cash inflows? (Do not round PV factors and intermediate calculations. Round your final answer to the nearest dollar.)

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Answer #1

Present value of these cash inflows = $11,600/1.09 + $11,600/1.092 + $11,600/1.093

Present value of these cash inflows = $29,363

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