Joe Vandelay buys a piece of equipment for $200,000. He puts down $40,000 and finances $160,000 from a local bank. Joe s opportunity cost is 5%, and the bank charges 10% on the loan. The after-tax cash flows generated from the equipment are $54,000 per year for the next 5 years. What is the present value of the benefits?

a. $210,041.17 b. $208,952.28 c. $212,163.39 d. $214,234.46