(Ignore Income Taxes in This Problem)The Management of Hirsh Corporation

Multiple Choice

(Ignore income taxes in this problem) The management of Hirsh Corporation is investigating an investment in equipment that would have a useful life of 9 years.The company uses a discount rate of 13% in its capital budgeting.The net present value of the investment,excluding the annual cash inflow,is -$666,493.To the nearest whole dollar how large would the annual cash inflow have to be to make the investment in the equipment financially attractive?

A) $86,644
B) $666,493
C) $74,055
D) $129,870