Discuss a financially acceptable investment


Norris Company is considering investing in automated equipment with a ten-year useful life. Managers have estimated the cash flows associated with the tangible costs and benefits of automation, but have been unable to estimate the cash flows associated with the intangible benefits. Using the company's 14% required rate of return, the net present value of the cash flows associated with just the tangible costs and benefits is a negative $182,560. How large would the annual net cash inflows from the intangible benefits have to be to make this a financially acceptable investment?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Discuss a financially acceptable investment
Reference No:- TGS0699570

Expected delivery within 24 Hours