Calculate the present value of the cash inflows

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Question - Paramount Company is considering purchasing new equipment costing $700,000. The management has estimated that the equipment will generate cash flows as follows:

Year 1 $200,000

Year 2 200,000

Year 3 250,000

Year 4 250,000

Year 5 150,000

The company's required rate of return is 10%. Using the factors in the time table, calculate the present value of the cash inflows.

Reference no: EM133183195

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