Assume that a company is considering buying a new piece of equipment for $$280,000$ that would have a useful life of five years and a salvage value of $$20,000.$ The equipment would generate the following estimated annual revenues and expenses:

Revenues $ $120,000$

Less operating expenses:

Commissions $ $15,000$

Insurance $5,000$

Depreciation $52,000$

Maintenance $30,000102,000$

Net operating income $ $18,000$

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

The company also believes that this investment would provide some annual intangible benefits that are difficult to quantify. Assuming a discount rate of $20\%,$ the minimum dollar value per year that must be provided by the equipment$$s intangible benefits to justify the $$280,000$ investment is closest to:

Multiple Choice

$$55,976.$

$$64,926.$

$$20,926.$

$$11,976.$