Cha Li Lao Company Wants to Purchase Equipment with a 3-Year

Multiple Choice

Cha Li Lao Company wants to purchase equipment with a 3-year useful life which is expected to produce cash inflows of $15000 each year for two years and $9000 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? $\text { Present Value of } 1$
$\begin{array}{cc}\text { Period } & 14 \% \\\hline 1 & {.88}\\2 & .77\\3&.67\end{array}$

A) $26130
B) $30780
C) $30870
D) $34750