The Cambro Foundation, a nonprofit organization, is planning to invest $214,085

Question

The Cambro Foundation, a nonprofit organization, is planning to invest $214,085 in a project that will last for three years. The project will produce net cash inflows as follows:

      

  

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table.

   
Required:

Assuming that the project will yield exactly a 7% rate of return, what is the expected net cash inflow for Year 3? (Round discount factor(s) to 3 decimal places.)

The Cambro Foundation, a nonprofit organization, is planning to invest $214,085 in a project that will last for three years. The project will produce net cash inflows as follows:

Explanation / Answer

In nonprofit organisation they work on no profit and loss

So third year Present value= $81594.8

So Cash Inflow=81594.8/.816=$99956.88

USD$ Year Cah Flow Discount @7% Discounted Amount 0 214085 1 -214085 1 67000 0.9346 62618.20 2 80000 0.8734 69872.00 3 ? 0.8163 0.00 -81594.80

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.