Smuttynose Brewereyis considering two alternative lager beer brewing equipment:

Bayerische LagerBrewer 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 company's cost of capital is 15% percent. By how much would the value of the company increaseper yearif it accepted the project which creates more value for the firm?

Group of answer choices

$1,560,115.19

$1,464,317.80

$1,323,177.00

$1,708,453.12

None of the above answers is correct