Calculate the present value of the generated cash flows

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Your company will generate $48,500 in cash flow each year for the next twelve years from a new information database. The computer system needed to set up the database costs $274,000. Assume you can borrow the money to buy the computer system at 10.00 percent annual interest.

Requirement 1: Calculate the present value of the generated cash flows. (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Reference no: EM13933157

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