16. I can buy a business that promises a $15,500 cash flow every year for the next 6 years. How much can I pay to acquire this business if I require a 14% rate of return?

1. A $50,266.87

2. B $60.000.87

3. C $60,274.35

4. D $60,766.87

5. E None of the above

17. If you purchased the above business for $55,000, then your NPV is... and you ...value

1. A $5,274.35; destroyed

2. B -$9,533.13; created

3. C $666.87.13; created

4. D $766.87.23; created

5. E None of the above