Welch Corporation is planning an investment with the following characteristics (Ignore income taxes.):

Useful life		6	years
Yearly net cash inflow	$	50,000
Salvage value	$	0
Internal rate of return		12	%
Required rate of return		8	%

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.

The initial cost of the equipment is closest to:

Multiple Choice

a) $250,100

b) $205,550

c) Cannot be determined from the given information.

d) $215,900