Charley has a typing service. He estimates that a new computer will result in in
ID: 2361478 • Letter: C
Question
Charley has a typing service. He estimates that a new computer will result in increased cash inflow $2,600 in Year 1, $3,000 in Year 2 and $4,400 in Year 3. (Ignore income taxes.)
If Charley's required rate of return is 6%, the most that Charley would be willing to pay for the new computer would be: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)
If Charley's required rate of return is 6%, the most that Charley would be willing to pay for the new computer would be: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)
Explanation / Answer
$7,903