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Cost accounting problem. Please help. :)?

Okay.. so i'm trying to solve this problem, but I don't even know where to start. Please help!

A CO. has acquired a piece of equipment costing $25,000. The equipment is expected to have equal cash inflows over the 5 year life of the machine. The internal rate of return on this equipment is 5%. What are the estimated cash inflows from years 1-5? Round to nearest dollar.

just make sure you always have a financial calculator to do these questions:

we know the cost which is 25,000 which is the Present Value or PV in your calculator. So automatically Future Value of (FV) = 0

We also know the rate of return which is 5% = i in your calculator.

The number of years = 5 =n in your calculator. You will solve for the Annuity payment or (PMT) in your calculator

so the Annual Cash Inflow will be $5774

hope that helps.

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