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The company is considering an investment that costs $785,000 today and has a salvage value in 10 years of $137


but the company is not sure how much net annual cash inflow will be provided by the investment. The company has a discount rate of 7%. Compute the net amount of annual cash inflow required to break even.

I don't feel like working it out, but you just discount back the cash flows assuming they're constant, and then do some simple algebra.

It looks kind of like

(785000 - 137) = (x / 1.07) + (x / 1.07^2) + ... (x / 1.07 ^10)

Solve for x.

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