A company’s managers are considering investing in a project that has an expected life of five years. The project is expected to generate a positive net present value of N$240 000 when cash flows are discounted at twelve percent per annum. The project’s expected cash flows include a cash inflow of N$120 000 in each of the five years. No tax is payable on projects of this type.

a, Calculate the percentage decrease to the nearest whole number, in the annual cash inflow that would cause the managers to reject the project from a financial perspective