Langdon Company is considering purchasing a capital Investment that is expected to provide annual cash Inflows of $10,000 per year for 3 years. Assuming that Langdon's requtred rate of return s 8%, what is the present value of these cash infows? (PV of $1 and PVA of $1) (Use approprlate factor(s) from the tables provided. Do not round your lIntermedlate calculations. Round your finel answer to the nenrest dollar) Multiple Choice $24,018 $24,869 $25,771

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Langdon Company Investment Analysis**

Langdon Company is considering purchasing a capital investment that is expected to provide annual cash inflows of $10,000 per year for 3 years. Assuming that Langdon's required rate of return is 8%, the task is to determine the present value of these cash inflows using the Present Value Annuity (PVA) of $1.

Instructions:
- Use appropriate factors from the tables provided.
- Do not round your intermediate calculations.
- Round your final answer to the nearest dollar.

**Multiple Choice Options:**
- $24,018
- $24,869
- **$23,121** (Selected Option)
- $25,771

The option indicating $23,121 is selected, suggesting this is the calculated present value based on the given criteria.
Transcribed Image Text:**Langdon Company Investment Analysis** Langdon Company is considering purchasing a capital investment that is expected to provide annual cash inflows of $10,000 per year for 3 years. Assuming that Langdon's required rate of return is 8%, the task is to determine the present value of these cash inflows using the Present Value Annuity (PVA) of $1. Instructions: - Use appropriate factors from the tables provided. - Do not round your intermediate calculations. - Round your final answer to the nearest dollar. **Multiple Choice Options:** - $24,018 - $24,869 - **$23,121** (Selected Option) - $25,771 The option indicating $23,121 is selected, suggesting this is the calculated present value based on the given criteria.
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