Benz Company is considering the purchase of a machine that costs $200,000 and has a useful life of 20 years. The company's required discount rate is 20%. If the machine's net present value is $8,000, what must be the annual cash inflows associated with the machine, rounded to the nearest whole dollar, do not round your intermediate calculations? (Ignore income taxes in this problem.)

Benz Company is considering the purchase of a machine that costs $200,000 and has a useful life of 20 years. The company's required discount rate is 20%. If the machine's net present value is $8,000, what must be the annual cash inflows associated with the machine, rounded to the nearest whole dollar, do not round your intermediate calculations? (Ignore income taxes in this problem.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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