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Trybus Corporation uses a discount rate of 16% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of
Trybus Corporation uses a discount rate of 16% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of 5 years has thus far yielded a net present value of $-233,764. This analysis did not include any estimate of the salvage value of the equipment. How large would the salvage value of the automated equipment have to be to make the incestment in the automated equipment financially attractive?
A) $491,101
B) $1,461,025
c) $233,764
d) $37,402
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