Welch Corporation is planning an investment with the following characteristics (Ignore income taxes.): Useful life 6yearsYearly net cash inflow $45,000 Salvage value$0 Internal rate of return 18%Required rate of return 14%See separate 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:
A. $235,890
B. $157,410
C. $175,005
D. Cannot be determined from the given information.
Answer: B
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