The management of Byrge Corporation is investigating buying a small used aircraft to use in making airborne Inspections of its above-ground pipelines. The aircraft would have a useful life of 4 years. The company uses a discount rate of 15% in its capital budgeting. The net present value of the Investment, excluding the Intangible benefits, Is -$316,520. (Ignore Income taxes.) Click here to view Exhibit 128-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. How large would the annual intangible benefit have to be to make the Investment in the aircraft financially attractive? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice O $110,865 $47,478 $316.520 $79,130

The management of Byrge Corporation is investigating buying a small used aircraft to use in making airborne Inspections of its above-ground pipelines. The aircraft would have a useful life of 4 years. The company uses a discount rate of 15% in its capital budgeting. The net present value of the Investment, excluding the Intangible benefits, Is -$316,520. (Ignore Income taxes.) Click here to view Exhibit 128-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. How large would the annual intangible benefit have to be to make the Investment in the aircraft financially attractive? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice O $110,865 $47,478 $316.520 $79,130

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter11: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 1cM

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