Always Rite Corporation Is Considering a Project with Annual After-Tax

question 45

Multiple Choice

Always Rite Corporation is considering a project with annual after-tax cash flows of $8000 per year for 5 years. The company's cost of capital is 5%. Using the net present value method, what is the maximum amount that the company should invest?

• A) $22 985
• B) $27 472
• C) $34 636
• D) $33 908