Woods Company wants to purchase an asset with a 3-year useful life, which is expected to produce cash inflows of $15,000 each year for two years, and $10,000 in year 3. Woods has a 14% cost of capital, and uses the following factors. What is the present value of these future cash flows?
A) $29,800
B) $30,400
C) $31,450
D) $34,750

Question

Woods Company wants to purchase an asset with a 3-year useful life, which is expected to produce cash inflows of $15,000 each year for two years, and $10,000 in year 3. Woods has a 14% cost of capital, and uses the following factors. What is the present value of these future cash flows? 
A) $29,800 
B) $30,400 
C) $31,450 
D) $34,750

Quizplus · Accepted Answer

The Answer of Woods Company wants to purchase an asset with a 3-year useful life, which is expected to produce cash inflows of $15,000 each year for two years, and $10,000 in year 3. Woods has a 14% cost of capital, and uses the following factors. What is the present value of these future cash flows? 
A) $29,800 
B) $30,400 
C) $31,450 
D) $34,750

Woods Company Wants to Purchase an Asset with a 3-Year