The finney company is reviewing the possibility of

Reference no: EM13592844

The Finney Company is reviewing the possibility of remodeling one of its showrooms and buying some new equipment to improve sales operations. The remodeling would cost $400,000 now and the useful life of the project is 14 years. Additional working capital needed immediately for this project would be $40,000; the working capital would be released for use elsewhere at the end of the 14-year period. The equipment and other materials used in the project would have a salvage value of $20,000 in 14 years. Finney's discount rate is 19%.

What would the annual net cash inflows from this project have to be in order to justify investing in remodeling?

Reference no: EM13592844

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