Lola Catering is a firm based in North Soho that provides beverage services to corporate functions, specializing in champagne and cherry cola (C-O-L-A Cola). Lola is considering bidding on a six-year, fixed annual payment contract to provide beverages to all the EOFY parties of Electric Candlelight Limited, who currently pays Lola's direct competitor, Del Rey Catering, $19,800 per annum to provide their events with strange-tasting, Pepsi Cola. In order to be able to service the contract with Electric Candlelight, Lola will need to purchase new glassware at an up-front net cost of $28,300 (1.e. at t=0). Just before the time of the first EOFY party one year from now, Lola would need to spend $2,400 on beverage supplies. After that the cost of these supplies is expected to rise by 5.0% per annum for the foreseeable future. Assume that Lola Catering's cost of capital for projects of this type is 31.5% p.a. and that Electric Candlelight pays the annual contract fee on the day of each party. For this question you should assume that all dollar values in the questions are net free cash flows after taxes. Which of the following is closest to the maximum amount that Lola Catering would be willing to undercut (i.e. bid less than) Del Rey's existing annual fee by? O a. $3,990.87 p.a. O b. $5,421.61 p.a. Oc. $6,127.92 p.a. O d. $5,793.29 p.a. Oe. $14.460.70 p.a. Of $6,634.30 p.a. O g. $6,348.12 p.a. Oh. $4,890.78 p.a