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The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 6 years. The company uses a discount
The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 6 years. The company uses a discount rate of 12% in its capital budgeting. The net present value of the investment, excluding the annual cash inflow, is $404,214. How large would the annual cash inflow have to be to make the investment in the equipment financially attractive? (Ignore income taxes.)
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