EXERCISE 13-12 Working with Net Present Value [LO1]
Piccadilly Hospital has purchased new lab equipment for $200,000. The equipment is expected to last for three years and to provide cash inflows as follows:
![Text Box: Year 1. . . . . . . . . . . . . . . . . . . . . . . . . . $60,000 Year 2 . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000 Year 3 . . . . . . . . . . . . . . . . . . . . . . . . . ?](https://test.transtutors.com/qimg/845d6c01-7bae-4b10-8a21-0d6015f88ab9.png)
Required:
Assuming that the equipment will yield exactly a 10% rate of return, what is the expected cash inflow for year 3?