(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem. ) Charley has a typing service.He estimates that a new computer will result in increased cash inflow $1,600 in Year 1,$2,000 in Year 2 and $3,000 in Year 3.If Charley's required rate of return is 12%,the most that Charley would be willing to pay for the new computer would be:

A) $4,623
B) $5,159
C) $3,294
D) $4,804