Mountain View Hospital has purchased new lab equipment for $134,650. The equipment is expected to last for three years and to provide cash inflows as follows: Year 1. ... $45,000 Year 2. $60,000 Year 3........ ? Required: (Ignore income taxes.) Assuming that the equipment will yield exactly a 16% rate of return, what is the expected cash inflow for Year 3?

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Mountain View Hospital has purchased new lab equipment for $134,650. The equipment is expected to last for three years
and to provide cash inflows as follows:
Year 1.
$45,000
Year 2..
$60,000
Year 3...........?
Required: (Ignore income taxes.)
Assuming that the equipment will yield exactly a 16% rate of return, what is the expected cash inflow for Year 3?
Transcribed Image Text:Mountain View Hospital has purchased new lab equipment for $134,650. The equipment is expected to last for three years and to provide cash inflows as follows: Year 1. $45,000 Year 2.. $60,000 Year 3...........? Required: (Ignore income taxes.) Assuming that the equipment will yield exactly a 16% rate of return, what is the expected cash inflow for Year 3?
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