Investigating an investment in equipment

Reference no: EM13135187

The management of Malit Corporation is investigating an investment in equipment that would have a useful life of 9 years. The company uses a discount rate of 17% in its capital budgeting. The net present value of the investment, excluding the annual cash inflow, is -$367,742. To the nearest whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive?

A. $62,516

B. $82,620

C. $40,860

D. $367,742

Reference no: EM13135187

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