1. (Ignore income taxes in this problem.) The Yates Company purchased a piece of equipment which is expected to have a useful life of 7 years with no salvage value at the end of the 7-year period. This equipment is expected to generate a cash inflow of $32,000 each year of its useful life. If this investment has an internal rate of return of 14%, then the initial cost of the equipment is: A. $150,000 B. $137,216 C. $12,800 D. $343,360

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