Question: 9 Western Electronics (WE) is reviewing the following data relating to a new equipment proposal: Net initial investment outlay After-tax cash inflow from disposal of


9 Western Electronics (WE) is reviewing the following data relating to a new equipment proposal: Net initial investment outlay After-tax cash inflow from disposal of the asset after 5 years $10,000 Present value of an annuity of $i at 128for 5 years Present value of $1 at 128 in 5 years $50,000 3.605 0.567 WE expects the net after-tax savings in cash outflows from the investment to be equal in each of the 5 years. What is the minimum amount of after-tax annual savings oncluding depreciation effects) needed to make the investment yield a 12% return (rounded to the nearest whole dollar)? 9 Multiple Choice $13,889. $12,297 $8,189. $11,111 $15,678
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