The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 5 years. The company uses a discount rate of 12% in its capital budgeting. The net present value of the investment, excluding the annual cash inflow, is - $404,614. To the nearest whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive? (Ignore income taxes.)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 5 years. The company uses ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
When Serena from the United States flies to Scotland on a Canadian airline, stays in an Edinburgh hotel, and buys many wool sweaters from Scotland to bring home, she is?
Answers (1)
Explain how you plan to finance your college education. If you are not currently planning on attending college, explain how you would finance your education if you were.
Answers (1)
Which type of data does your company collected from customers or potential customers A. positioning data B. market share data C primary data D. secondary data
Answers (1)
Any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller's goods or services is referred to as a
Answers (1)
In a flexible budget, what will happen to fixed costs as the activity level increases? A. The fixed cost per unit will remain unchanged. B. The fixed cost per unit will increase. C. Fixed costs are not included in a flexible budget. D.
Answers (2)
New Questions in Business
Your bank is offering you an account that will pay 20 % interest in total for a two-year deposit. Determine the equivalent discount rate for the following: a. Six months b. One year c. One month
Answers (1)
A sales associate has a house listed at $200,000. It's overpriced and he feels it has only a 70% chance of selling in the original listing term. He also has a $300,000 house that has an 80% chance of sale.
Answers (1)
Banks are financial intermediaries because they: a) hold all the money in the economic system in currency form. b) print money as needed for borrowers whether business, individual, or government entities.
Answers (1)
Johnson Company manufactures a variety of shoes, and has received a special one-time-only order directly from a wholesaler. Johnson has sufficient idle capacity to accept the special order to manufacture 15,000 pairs of sneakers at a price of $7.
Answers (1)
What are the remains after the costs of running a business have been paid? A. stock B. taxes C. profits D. sales
Answers (1)