(Ignore income taxes in this problem) The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 8 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 -$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?
A) $48,170
B) $50,177
C) $80,800
D) $401,414
Correct Answer:
Verified
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