(Ignore income taxes in this problem) The management of Byrge Corporation is investigating buying a small used aircraft to use in making airborne inspections of its above-ground pipelines.The aircraft would have a useful life of 8 years.The company uses a discount rate of 10% in its capital budgeting.The net present value of the investment,excluding the intangible benefits,is -$448,460.To the nearest whole dollar how large would the annual intangible benefit have to be to make the investment in the aircraft financially attractive?
A) $44,846
B) $56,058
C) $84,060
D) $448,460
Correct Answer:
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