The companyThe company has opportunity to invest in a high tech equipment. Your manager is exploring the the following two options. Option 1: The first option is an invesment which costs $840,000 and pays the following cashflows: Year Cashflows 2 10,000 3 46,000 4 34,000 5 40,000 6 105,000 7 450,000 8 40,000 Option 2: The second option is a perpetuity and this will cost $60,000 This will result in cashflows of $12,500 per year with the 1st cash flow occurring at the end of year 4. Your manager indicates that he requires a rate of return of 11% per annuam which can be applied to both of these investments. has opportunity to invest in a high tech equipment. Your manager is exploring the the following two options. Option 1: The first option is an invesment which costs $840,000 and pays the following cashflows: Year Cashflows 2 10,000 3 46,000 4 34,000 5 40,000 6 105,000 7 450,000 8 40,000