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(Ignore Income Taxes in This Problem

question 131

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(Ignore income taxes in this problem.) The management of Gramby Corporation is investigating the purchase of a new satellite routing system with a useful life of 5 years. The company uses a discount rate of 18% in its capital budgeting. The net present value of the investment, excluding its intangible benefits, is -$245,970.
Required:
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?


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Platforms that enable users to build connections, share interests, and facilitate communication among members.

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