The Green Company is reviewing the possibility of remodeling one of its showrooms and buying some new equipment to improve sales operations. The remodeling would cost $120,000 now and the useful life of the project is 10 years. Additional working capital needed immediately for this project would be $30,000; the working capital would be released for use elsewhere at the end of the 10-year period. The equipment and other materials used in the project would have a salvage value of $10,000 in 10 years. The company's discount rate is 16%.

What would the annual net cash inflows from this project have to be in order to justify investing in remodeling?

Click here to viewExhibit 14B-1andExhibit 14B-2,to determine the appropriate discount factor(s) using the tables provided.

$14,495

$35,842

$16,147

$29,158