(Ignore Income Taxes in This Problem) the Management of Enamorado

Multiple Choice

(Ignore income taxes in this problem) The management of Enamorado 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 5 years. The company uses a discount rate of 17% in its capital budgeting. The net present value of the investment, excluding the intangible benefits, is -$160,462. To the nearest whole dollar how large would the annual intangible benefit have to be to make the investment in the aircraft financially attractive?

A) $160,462
B) $50,160
C) $32,092
D) $27,279