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The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 8 years. The company uses a discount
The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 8 years. The company uses a discount rate 12% in its capital budgeting. The net present value of the investment, excluding the annual cash inflow, is ($401,414). To the nearest whole dollar, how large would the annual cash inflow have to be to make the investment in the equipment financially attractive (ignore income tax)? A. $80,806 B. $50,177 C. $48,170 D. $401,414
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