Homework answers / question archive / Baber Corporation is planning an investment with the following characteristics: (Ignore income taxes in this problem

Baber Corporation is planning an investment with the following characteristics: (Ignore income taxes in this problem

Accounting

Share With

Baber Corporation is planning an investment with the following characteristics: (Ignore income taxes in this problem.) 
Useful life                  7 years

Yearly net cash inflow     $60,000

Salvage value  $0

Internal rate of return     14%

Required rate of return 10% 
Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables. 
The initial cost of the equipment is closest to: (Round discount factor(s) to 3 decimal places) 
Multiple Choice :

a) $360,100 
b) $257,280

c) $267,630 

d) Cannot be determined