Dexter Company Is Considering Purchasing Equipment $\begin{array}{ll}\text { Year 1 } & \$ 90,000 \\\text { Year 2 } & \$ 150,000\end{array}$

Multiple Choice

Dexter Company is considering purchasing equipment. The equipment will produce the following cash flows: $\begin{array}{ll}\text { Year 1 } & \$ 90,000 \\\text { Year 2 } & \$ 150,000\end{array}$ Dexter requires a minimum rate of return of 10%. What is the maximum price Dexter should pay for this equipment?

A) $205,785
B) $123,968
C) $240,000
D) $120,000