Asked by Terrance Guvakuva on May 05, 2024

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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) $40,820
B) $22,229
C) $28,009
D) $155,606

Intangible Benefits

Non-monetary advantages that cannot be easily quantified or directly measured, such as brand recognition, customer loyalty, and employee satisfaction.

Automated Equipment

Machinery and tools that operate independently or with minimal human intervention, often used to improve efficiency in manufacturing processes.

Financially Attractive

Describes investments, projects, or opportunities that are expected to provide a high return relative to their cost.

  • Grasp the impact of intangible benefits and costs on the financial attractiveness of investments.
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TB
Tushar BhushanMay 11, 2024
Final Answer :
A
Explanation :
Minimum annual cash flows from the intangible benefits
= Negative net present value to be offset ÷ Present value factor
= $155,606 ÷ 3.812 = $40,820