A company's managers are considering investing in a project that has an expected life of 5 years. The project is expected to generate a positive net present value of $240 000 when cash flows are discounted at 12%. The expected net cash flows of project is $120 000 in each of 5 years.

Calculate the percentage decrease (sensitivity) to the nearest 0.1% in the annual net cash inflow that would cause the managers to reject the project from a financial perspective.