Bramble Company is considering purchasing equipment. The equipment will produce the following cash inflows: Year...
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Bramble Company is considering purchasing equipment. The equipment will produce the following cash inflows: Year 1,35,000; Year 2, 40,000; and Year 3,\$50,000. Bramble requires a minimum rate of return of 10%. What is the maximum price Bramble should pay for this equipment? (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (Round answer to 2 decimal places, e.g. 5,275.50.) To determine the present value of the future cash flows, discount the future cash flows at 10%, using Table 3 . Click here to view the factor table. Year 1 Year 2 Year 3 Present value of future cash flows
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