Boomerang Bungee Corp Year
A)$5,527

Multiple Choice

Boomerang Bungee Corp.is considering the following project.Determine the equal annual annuity for the project if the cost of capital is 14%.
Initial Investment: $75,000
$$\begin{array} { | c | c | } \hline \text { Year } & \text { Cash Inflows } \\\hline 1 & \$ 30,000 \\\hline 2 & \$ 35,000 \\\hline 3 & \$ 40,000 \\\hline\end{array}$$
Year

A) $5,527.89
B) $4,355.25
C) $7,768.67
D) $2,259.62