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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

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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 $30,000. The equipment would generate the following estimated annual revenues and expenses $120,000 Revenues Less operating expenses: Commissions Insurance Depreciation Maintenance Net operating income $15,000 5,000 50,000 30,000 100,000 $ 20,000 Click here to view Exhibit 148.1 and Exhibit 148 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 quantity. Assuming a discount rate of 15%, 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: O $44,134 ( 0) $53,084. (0) O $9,084. O $134.

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