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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![**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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e1a3f49-76a1-47d2-be7c-586afe137c42%2F686518a0-42a4-4983-9628-793e2796b9f8%2Fgdb6lo_processed.jpeg&w=3840&q=75)
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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