(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem.) White Company's required rate of return on capital budgeting projects is 12%. The company is considering an investment opportunity which would yield a cash flow of $10,000 in five years. What is the most that the company should be willing to invest in this project?

A) $36,050
B) $2,774
C) $17,637
D) $5,670