The management of Londo Corporation is investigating buying a small used aircraft to use in making airborne
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Question:
The management of Londo Corporation is investigating buying a small used aircraft to use in making airborne inspections of its above-ground pipelines. The aircraft would have a useful life of 4 years. The company uses a discount rate of 15% in its capital budgeting. The net present value of the investment, excluding the intangible benefits, is -$316,520. To the nearest whole dollar. How large would the annual intangible benefit have to be to make the investment in the aircraft financially attractive?
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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