Dexter Company Is Considering Purchasing Equipment $1 \quad \$ 120,000$ Year $2 \quad \$ 200,000$

Multiple Choice

Dexter Company is considering purchasing equipment. The equipment will produce the following cash flows: Year $1 \quad \$ 120,000$
Year $2 \quad \$ 200,000$ Dexter requires a minimum rate of return of 10%. What is the maximum price Dexter should pay for this equipment?

A) $274,381
B) $165,290
C) $320,000
D) $160,000