What is the minimum annual cash flow required to make the


A fixed asset needed in your firm’s production department is expected to produce an annual cash flow of $100,000 every year for the foreseeable future. The asset costs $950,000.

- At a cost of capital of 10%, should you purchase the asset?

- What is the minimum annual cash flow required to make the purchase of this asset viable?

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Financial Management: What is the minimum annual cash flow required to make the
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