The management of Osborn Corporation is investigating an investment in equipment that wouldhave a useful life of 7 years. The company uses a discount rate of 12% in its capital budgeting. Thenet present value of the investment, excluding the annual cash inflow, is -$407,814. To the nearestwhole dollar how large would the annual cash inflow have to be to make the investment in theequipment financially attractive? (Ignore income taxes.)Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s)using the tables provided.Multiple ChoiceOOOO$48,938$58,259$89,355$407,814

Discounting factor is an essential part while budgeting any investments or any acquisition.…

whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive? (Ignore income taxes.) Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice O O $48,938 $58,259 $89,355 $407,814

whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive? (Ignore income taxes.) Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice O O $48,938 $58,259 $89,355 $407,814

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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