CapiCal Enterprises Is Transforming Some of Their Fossil Fuel Based

Multiple Choice

CapiCal Enterprises is transforming some of their fossil fuel based processes to those being driven by wind turbines. Based on extensive meteorological data, the following savings have been projected for the next five years: $850,000, $680,000, $995,000, $778,000 and $900,000. If interest rates are at 7% compounded annually and the company is willing to invest all the savings in the green technology, what would it be willing to pay today for the reengineering?

A) $2,657,332
B) $5,506,501
C) $3,435,778
D) $14,477,104
E) $8,989,341