Mango Madness Company Is Considering Purchasing Equipment $1 \quad \$ 40,000$

Multiple Choice

Mango Madness Company is considering purchasing equipment. The equipment will produce the following cash flows: Year $1 \quad \$ 40,000$
Year $2 \quad \$ 30,000$ Mango Madness requires a minimum rate of return of 10%. What is the maximum price Mango Madness should pay for this equipment?

A) $61,157.10
B) $36,363.60
C) $70,000
D) $35,000