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Calculate the percentage decrease

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Reference no: EM132059619

Question - A company's managers are considering investing in a project that has an expected life of five years. The project is expected to generate a positive net present value of $240,000 when cash flows are discounted at 12% per annum. The project's expected cash flows include a cash inflow of $120,000 in each of the five years. No tax is payable on projects of this type.

Required: Calculate the percentage decrease, to the nearest 0.1%, in the annual cash inflow that would cause the managers to reject the project from a financial perspective.

Reference no: EM132059619

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