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Charley has a typing service. He estimates that a new computer will result in increased cash inflow $2,500 in Year 1, $2,900 in Year 2 and $4,900 in...


Charley has a typing service. He estimates that a new computer will result in increased cash inflow $2,500 in Year 1, $2,900 in Year 2 and $4,900 in Year 3. (Ignore income taxes.)






Click here to view Exhibit 13B-1 to determine the appropriate discount factor(s) using tables.






If Charley's required rate of return is 6%, the most that Charley would be willing to pay for the new computer would be: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)







$7,620





$5,081





$9,055





$7,439

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