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Question 3 (2 points) Your company will be investing in a new generator. Generator A-400 costs $100,000, after which it generates positive after-tax cash flows

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Question 3 (2 points) Your company will be investing in a new generator. Generator A-400 costs $100,000, after which it generates positive after-tax cash flows of $60,000 at the end of each of the next two years. Generator F-300 also costs $100,000, after which it generates positive after-tax cash flows of $48,000 at the end of each of the next three years. Your company's cost of capital is 11%. Based on the equivalent annual annuity, which generator should be chosen? a) F-300.57.078.69 b) F-300,$1,606.35 c) A-400,$1,606.35 d) A-400,$7.078.69

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