Equivalent Annual Cost: Your Firm Is Considering an Investment That

Equivalent Annual Cost: Your firm is considering an investment that will cost $750,000 today. The investment will produce cash flows of $250,000 in year 1, $400,000 in year 2, and $600,000 in year 3. The discount rate that your firm uses for projects of this type is 11.75%. What is the investment's equivalent annual cost? (Round off to the nearest whole dollar)

A) $163,613
B) $225,008
C) $68,888
D) $92,845