(Ignore Income Taxes in This Problem

question 67

Multiple Choice

(Ignore income taxes in this problem.) Anthony operates a part time auto repair service.He estimates that a new diagnostic computer system will result in increased cash inflows of $1,500 in Year 1,$2,100 in Year 2,and $3,200 in Year 3.If Anthony's required rate of return is 10%,then the most he would be willing to pay for the new diagnostic computer system would be:

• A) $4,599
• B) $5,501
• C) $5,638
• D) $5,107