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Smuttynose Brewerey is considering two alternative lager beer brewing equipments: Bayerische Lager Brewer has an expected life of 3 years, will cost $ 5 million,

Smuttynose Brewerey is considering two alternative lager beer brewing equipments:
Bayerische Lager Brewer has an expected life of 3 years, will cost $5 million, and will produce net cash flows of $3.75 million per year. Bohemian Lager Brewer has a life of 5 years, will cost $8.5 million, and will produce net cash flows of $4 million per year. Smuttynose plans to serve the lager segment indefinitely. Inflation in operating costs is expected to be zero, and the companys cost of capital is 15% percent. By how much would the value of the company increase per year if it accepted the project which creates more value for the firm?
Group of answer choices
$1,560,115.19
$1,464,317.80
$3,562,094.19
$4,908,620.39
None of the answers is correct

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