Hasson Corporation is investigating the purchase of a new computerized scheduling system with special hardware with a useful life of 9 years. The company uses a discount rate of 10% in its capital budgeting. The net present value of the investment, excluding its intangible benefits, is -$505,000. Ignore income taxes in this problem.

Required:

1. DRAW A TIME LINE GRAPH FOR THIS PROJECT.
2. Applying your knowledge of annuity tables, calculate the annuity amount that would create an NPV of zero.
3. 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?