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A company is considering updating its obsolete plant and equipment. The new equipment would be assumed to have a ten-year useful life. A discounted cash
A company is considering updating its obsolete plant and equipment. The new equipment would be assumed to have a ten-year useful life. A discounted cash flow analysis of the costs and benefits showed that the plant and equipment would have a net present value of ($540,000). However, uncertainty exists as to the intangible benefits of upgrading the plant and equipment. The company is subject to a cost of capital of 12%. How much would the plant and equipment's intangible benefits have to amount to annually to make the investment worthwhile? O A $32,563 B. $40,000 O C.$20,000 O D.$95,575
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