What is the most the company should pay

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Question - Your Company is interest in buying a new project that will last for 8 years. The projects internal rate of return is 5%. The project will generate annual operating cash inflows of $20,000. What is the most the company should pay for the equipment needed for this project? It will have no salvage value.

a. $135,723

b. $13,540

c. $128,000

d. $129,260

e. $122,797

Reference no: EM133030240

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