The Cambro Foundation, a nonprofit organization, is planning to invest $125,303 in a project that will last for three years. The project will produce net cash inflows as follows: Year 1 Year 2 Year 3 $ 38,000 $ 53,000 ? Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. Required: Assuming that the project will yield exactly a 12% rate of return, what is the expected net cash inflow for Year 3? Net cash inflow

Cornerstones of Cost Management (Cornerstones Series)
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Chapter19: Capital Investment
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Problem 22E
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The Cambro Foundation, a nonprofit organization, is planning to invest $125,303 in a project that will last for three years. The project
will produce net cash inflows as follows:
Year 1
Year 2
Year 3
$ 38,000
$ 53,000
?
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.
Required:
Assuming that the project will yield exactly a 12% rate of return, what is the expected net cash inflow for Year 3?
Net cash inflow
Transcribed Image Text:The Cambro Foundation, a nonprofit organization, is planning to invest $125,303 in a project that will last for three years. The project will produce net cash inflows as follows: Year 1 Year 2 Year 3 $ 38,000 $ 53,000 ? Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. Required: Assuming that the project will yield exactly a 12% rate of return, what is the expected net cash inflow for Year 3? Net cash inflow
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