Calculation of PV of cash flows
= $120,000 + $59,000(PVAF @16%, 12years) - $12000(PVF@16%,10 years )
= $120,000 + 59000*5.1971 - 12000*0.1685
=$120,000 + 306,628.9 - 2022
=$424,606.9
Required min annual after tax revenue
= $424,606.9 / 5.1971
= $81700.74
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