Your Corporation is investigating an investment in equipment that would have a useful life of 8 years. The company uses a discount rate of 6% in its capital budgeting. The net present value of the investment, excluding the annual cash inflow, is ($401,414). To the nearest whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive Group of answer choices $  59,619 $802,828 $  66,791 $  64,640 $401,414

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5PB: Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated...
icon
Related questions
Question
(Ignore income taxes in this problem) Your Corporation is investigating an investment in equipment that would have a useful life of 8 years. The company uses a discount rate of 6% in its capital budgeting. The net present value of the investment, excluding the annual cash inflow, is ($401,414). To the nearest whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive
Group of answer choices
$  59,619
$802,828
$  66,791
$  64,640
$401,414
 
 
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Capital Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage