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A company is considering a project with annual after-tax cash flows of $2,100.00 per year for six years. The company's cost of capital is 14
A company is considering a project with annual after-tax cash flows of $2,100.00 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 $ 2.195
Present value of $ 0.456
Future value of a series of equal payments 8.536
Prersent valuye of a series of equal payments 3.889
Using the net present value method, what is the maximum amount that the comany should invest?
a) $957.60
B) $8, 166.90
C) $17,925.60
D) $4,609.50
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