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Calculate the minimum amount of annual cash inflows

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Question: An asset is purchased for $50,000. It is expected to provide an additional $12,000 of annual net cash inflows. The asset has a 10-year life and an expected salvage value of $4,000. The hurdle rate is 10%. The present value of an annuity factor of 10% for 10 years is 6.1446, and the present value of $1 discounted for 10 years at 10% is 0.3855. Given the data provided, the minimum amount of annual cash inflows that would provide the 10% return is approximately.

Reference no: EM132743354

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