The Following Information Was Compiled for Infer-Tech PC Company Applying

Multiple Choice

The following information was compiled for Infer-Tech PC Company applying a $500,000 initial investment with an $80,000 operating cost increase per year over a five year period.The company factored in a 15% required rate of return.

Required
Compute the present value of the investment in years 2 and 4.Next,compute the net present value for the investment for the full five years.

A) $17,688;$29,599;$98,952
B) $15,123;$28,588;$103,388
C) $11,015;$22,336;$105,950
D) $15,866;$25,411;$101,990
E) $5,652;$32,652;$85,420