Acme Company is evaluating an investment in new equipment that has an estimated useful life of...

 

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Acme Company is evaluating an investment in new equipment that has an estimated useful life of 5 years. Acme uses a discount rate of 8% to make capital budgeting decisions. The net present value of the investment, excluding the annual cash inflows, is negative $459,200. How large do the annual net cash inflows have to be to make the project acceptable? Acme Company is evaluating an investment in new equipment that has an estimated useful life of 5 years. Acme uses a discount rate of 8% to make capital budgeting decisions. The net present value of the investment, excluding the annual cash inflows, is negative $459,200. How large do the annual net cash inflows have to be to make the project acceptable?

Answer rating: 100% (QA)

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