Question - Gannon Company is considering purchasing a machine. The machine will produce the following cash flows: Year 1 $60,000 Year 2 $90,000 Gannon requires a minimum rate of return of 10%. What is the maximum price Gannon should pay for this machine?
a. $64,462.95.
b. $150,000.00.
c. $128,925.90.
d. $75,000.00.