$15$

The management of Byrge Corporation is investigating buying a small used aircraft to use in making airborne inspections of its aboveground pipelines. The aircraft would have a useful life of $3$ 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 $-$$$237,360.($Ignore income taxes.$)$

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using the tables provided.

How large would the annual intangible benefit have to be to make the investment in the aircraft financially attractive?

Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.

$00-51$:$35$

Multiple Choice

$$95,440$

$$79,120$

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