Elk Creek Industries (ECI) Purchased Equipment to Expand Its Production

Elk Creek Industries (ECI) purchased equipment to expand its production facilities.The purchase agreement calls for annual payments of $60,000 at the end of each year for the next 6 years.If ECI's discount rate is 12%, at what amount should ECI record the equipment? Use appendix Table 1, Table 2, Table 3 and Table 4.

A) $360,000.
B) $231,300.
C) $331,540.
D) $246,660.
E) None of the answers is correct.