(Ignore Income Taxes in This Problem) the Management of Enamorado

question 134

Multiple Choice

(Ignore income taxes in this problem) The management of Enamorado 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 5 years. The company uses a discount rate of 17% in its capital budgeting. The net present value of the investment, excluding the intangible benefits, is -$160,462. 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)$160,462
• B)$50,160
• C)$32,092
• D)$27,279

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Definitions:

Identity Statuses

The stages or conditions in the process of developing identity, typically explored in terms of youth and adolescents' exploration and commitment to values and roles.

Identity

The qualities, beliefs, personality traits, appearance, and/or expressions that make a person (self-identity) or group (particular social category or social group).

Excited About Future

Feeling of enthusiasm or eagerness for what is to come or what may happen.

Harsh Verbal Discipline

The use of aggressive or demeaning language by a parent or caretaker towards a child, which can negatively affect the child’s self-esteem and behavior.