(Ignore income taxes in this problem.) Lajeunesse Corporation uses a discount rate of 14% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of 6 years has thus far yielded a net present value of $(81,000). 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.

Click here to viewExhibit 8B-1andExhibit 8B-2to determine the appropriate discount factor(s) using tables.

Ignoring any salvage value, to the nearest whole dollar 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?

rev: 12_19_2017_QC_CS-112654

$20,828

$4,457

$81,000

$12,776