(Ignore Income Taxes in This Problem The Initial Cost of the Equipment Was

A)£157,410

Multiple Choice

(Ignore income taxes in this problem.) Welch Company purchased a piece of equipment with the following data: $\begin{array}{lr} \text { Useful life. } & \text { 6 years } \\ \text { Yearly net cash inflow. } &£ 45,000\\ \text { Salvage value.} &£ 0\\ \text { Internal rate of return } & 18 \%\\ \text { Required rate of return } & 14 \%\\\end{array}$

The initial cost of the equipment was

A) £157,410.
B) £175,005.
C) £235,890.
D) impossible to determine from the information given.