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Following forecasts are made about a proposal which is being evaluated by a firm: Initial outlay : $ 1,50,000 Life: 4 years CFAT: $ 56,250

Following forecasts are made about a proposal which is being evaluated by a firm:
Initial outlay : $ 1,50,000
Life: 4 years
CFAT: $ 56,250
PVAF(14%,3): 2.3216
PVAF(14%,4): 2.9137
Calculate the sensitivity of the annual cash flows.
(A) 8.48%
(B) 9.32%
(C) 7.77%
(D) 8.84%

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