Biology Forums - Study Force

Other Fields Homework Help Accounting Topic started by: JSmith1 on Jul 19, 2023



Title: Highpoint, Incorporated, is considering investing in automated equipment with a ten-year useful ...
Post by: JSmith1 on Jul 19, 2023

Highpoint, Incorporated, is considering investing in automated equipment with a ten-year useful life. Managers at Highpoint 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 12% required rate of return, the net present value of the cash flows associated with just the tangible costs and benefits is a negative $282,500. How large would the annual net cash inflows from the intangible benefits have to be to make this a financially acceptable investment? (Ignore income taxes.)

Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.

▸ $20,000 ▸ $28,250 ▸ $35,000 ▸ $50,000


Title: Re: Highpoint, Incorporated, is considering investing in automated equipment with a ten-year useful ...
Post by: smiller94107 on Jul 19, 2023
Content hidden


Title: BFSF: Highpoint, Incorporated, is considering investing in automated equipment with a ten-year useful ...
Post by: Jonathan B on Feb 13, 2024
Help! The answer is missing an explanation...


Title: Re: Highpoint, Incorporated, is considering investing in automated equipment with a ten-year useful ...
Post by: smiller94107 on Feb 13, 2024
Done :)