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The management of Hirsh Corporation is investigating an investment in equipment that would have a useful life of 9 years. The company uses a discount
The management of Hirsh Corporation is investigating an investment in equipment that would have a useful life of 9 years. The company uses a discount rate of 13% in its capital budgeting. The net present value of the investment, excluding the annual cash inflow, is -$666,493. To the nearest whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive? 1. $86,644 2. $666,493 3. $74,055 4. $129,870
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