4-Highpoint, Inc., is considering investing in automated equipment with a ten-year useful life. Managers at...
70.2K
Verified Solution
Link Copied!
Question
Accounting
4-Highpoint, Inc., is considering investing in automated equipment with a ten-year useful life. Managers at Highpoint have estimated the cash flows associated with the tangible costs and benefits of automation, but have been unable to estimate the cash flows associated with the intangible benefits. Using the company's 12% required rate of return, the present value $282,500. How large would the annual net cash inflows from the intangible benefits have to be to make this a financially acceptable investment? A) $20,000 O B) $28,250 O C) $35,000 O D) $50,000 O
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
