Two years ago, Capricorn Inc. purchased an Asset A for $$66,000.$ The asset yields annual operating cash flow of $$20,000$ for $6$ years. The company is now looking into replacing Asset A with Asset B$,$ which will cost $$75,000$ and yield annual operating cash flow of $$40,000$ for the next $4$ years. Asset A can be sold now for $$30,000,$ but in four years' time, it will only be worth $$5,000.$ Asset $B$ can be sold for $$8,000$ in four years' time. The required rate of return is $20\%.$ Should Capricorn replace Asset A with Asset B$?$ Ignore taxes.

Multiple Choice

$$32,407\mathrm{.}41$

$$6,774\mathrm{.}69$

$-$$$23,225\mathrm{.}31$

$$24,185\mathrm{.}96$

$$8,221\mathrm{.}45$