20.

(Ignore income taxes in this problem.) Baber Corporation is planning an investment with the following characteristics:

Useful life		5	years
Yearly net cash inflow	$	50,000
Salvage value	$	0
Internal rate of return		15	%
Discount rate		11	%

Click here to view Exhibit 8B-2 to determine the appropriate discount factor(s) using tables.

The initial cost of the equipment is closest to:

$177,950

$167,600

$200,100

Cannot be determined from the given information.