(Ignore Income Taxes in This Problem)The Management of Londo Corporation

question 32

Multiple Choice

(Ignore income taxes in this problem) 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 6 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 -$474,060.To the nearest whole dollar how large would the annual intangible benefit have to be to make the investment in the aircraft financially attractive?

• A)$474,060
• B)$125,280
• C)$79,010
• D)$71,109

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