Ignore income taxes in this problem.) The management of Kobler Corporation is in

Question

Ignore income taxes in this problem.) The management of Kobler Corporation is investigating an investment in equipment that would hove o uscful life of 5 years. The company uses a discount rate o 10% in its capital bud etn God estimates are availatie or the ntal n esment and re arnaas op een or on ana ir ne asut can ito s are ne salvage value of the equipment. The net present value of the initial investment and the annuel cash outflows is $235,421 Click here to view Exhibit 13B-2 to determine the appropriate discount factor's) using tables ignoring any salvage value, to the nearest whole dolliar how large would the annual cash inflow have to be to make the investment in the equpment fnancialy attractive? O $235,421 O $23,542 O $62100 O$47,084

Explanation / Answer

Answer is $62100

Workings

PMT = Present value / (PVIFA 10% 5)

=235421/3.791

=$62100

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