FINA2230 BUSINESS FINANCE WINTER 2017 Homework: Chapter 10 Score: 0 of 1 pt P10-8 (similar to) Save HW Score: 19.87%, 2.58. Question Help * 4 of 13(3 complete) NPV Simes Innovations, Inc, is negotiating to purchase exclusive rights to manufacture and market a solar-powered toy car. The cars inventor has offered Simes the $1,600,000 today or a series of 6 year-end payments of $380,000. a. If Simes has a cost of capital of 11%, which form of payment should it choose? b. What yearly payment would make the two offers identical in value at a cost of capital of 11%? c. What would be your answer to part a of this problem if the yearly payments were made at the beginning of each year? d. The after-tax cash inflows associated with this purchase are projected to amount to $247000 per year for 16 years. Will this factor change the firm's decision about how to fund the initital investment? (Round to the nearest a. If Simes has a cost of capital of 11% the present value of the annuity is S dollar.) Enter your answer in the answer box and then click Check Answer emaining 9:41 PM