A company is considering a project with annual after-tax cash flows of $5,600.00 per year for six years. The company's cost of capital is 14 percent. Present and future value factors for a 14 percent interest rate for six years are as follows: Future value of $1 2.195 Present value of $1 0.456 Future value of a series of equal payments 8.536 Present value of a series of equal payments 3.889 Using
the net present value method, what is the maximum amount that the company should invest?
a. $21,778.40
b. $47,801.60
c. $12,292.00
d. $2,553.60
A
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