A company is considering a project with annual after-tax cash flows of $5,700.00 per year for six years. The company's cost of capital is 14 percent. Present and future value factors for a 14 percent interest rate for six years are as follows: Future value of
Present value of
Future value of a series of equal payments
Present value of a series of equal payments Using the net present value method, what is the maximum amount that the company should invest?
A) $22,167.30
B) $48,655.20
C) $12,511.50
D) $2,599.20
Correct Answer:
Verified
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