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Devon Corporation uses a discount rate of 8% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of

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Devon Corporation uses a discount rate of 8% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of 6 years has thus fat yielded a net present value of $500,941. This analysis did not include any estimates of the . intangible benefits of automating this process nor did it include any estimate of the salvage value of the equipment. (lgnore income taxes) Click here to view and to determine the appropriate discount factor(s) using the tables provided. Recuired: a. lgnoring any salvage value, how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive? b. Ignoring any cash flows from intangible benefits, how large would the salvage vaiue of the automated equipment have to be to make the investment in the automated equipment financially attractive? (Round your final answers to the nearest whole dollar amount.) Devon Corporation uses a discount rate of 8% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of 6 years has thus fat yielded a net present value of $500,941. This analysis did not include any estimates of the . intangible benefits of automating this process nor did it include any estimate of the salvage value of the equipment. (lgnore income taxes) Click here to view and to determine the appropriate discount factor(s) using the tables provided. Recuired: a. lgnoring any salvage value, how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive? b. Ignoring any cash flows from intangible benefits, how large would the salvage vaiue of the automated equipment have to be to make the investment in the automated equipment financially attractive? (Round your final answers to the nearest whole dollar amount.)

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