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(Ignore income taxes in this problem.) The management of Rose Corporation is investigating the purchase of a new satellite routing system with a useful
(Ignore income taxes in this problem.) The management of Rose Corporation is investigating the purchase of a new satellite routing system with a useful life of 7 years. The company uses a discount rate of 8% in its capital budgeting. The net present value of the investment, excluding its intangible benefits, is -$607,020. Required: 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?
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