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:Year 1 $ 60,000
Year 2 $ 60,000
Year 3 ?
Assuming that the equipment will yield exactly a 10% rate of return, what is the expected cash inflow for year 3? (Hint: Use Microsoft Excel to calculate the discount factor(s).
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