Welch Corporation is planning an investment with the following characteristics (Ignore income taxes.): Useful life 6?yearsYearly net cash inflow $80,000? Salvage value$0? Internal rate of return 17?%Required rate of return 13?%Use Exhibit 13B-1 and Exhibit 13B-2 above to determine the appropriate discount factor(s).The initial cost of the equipment is closest to:
A. $287,120
B. $400,100
C. $297,470
D. Cannot be determined from the given information.
Answer: A
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