(Ignore Income Taxes in This Problem

question 64

Multiple Choice

(Ignore income taxes in this problem. ) Lajeunesse Corporation uses a discount rate of 19% in its capital budgeting.Partial analysis of an investment in automated equipment with a useful life of 8 years has thus far yielded a net present value of -$127, 991.This analysis did not include any estimates of the intangible benefits of automating this process nor did it include any estimate of the salvage value of the equipment. Ignoring any salvage value, to the nearest whole dollar how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive?

• A)$32, 370
• B)$15, 999
• C)$127, 991
• D)$24, 318

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Definitions:

Close Relationships

Emotional connections between individuals characterized by affection, trust, interdependence, and sharing, such as friendships, family ties, and romantic partnerships.

Emergency Situations

Circumstances that arise unexpectedly and require immediate action to prevent serious harm to individuals or damage to property.

Broader Public Sphere

A concept of an area in social life where individuals can come together to freely discuss and identify societal problems, contributing to democratic participation.

Internal Characteristic

Personal attributes that are inherent to an individual, such as personality traits, beliefs, and emotions.