Question: I need help with B, C, and D. Answer A is already correct if it is needed for calculations. Thank you P10-8 (book/static) E Question

 I need help with B, C, and D. Answer A is

I need help with B, C, and D. Answer A is already correct if it is needed for calculations. Thank you

P10-8 (book/static) E Question Help NPV Simes Innovations, Inc., is negotiating to purchase exclusive rights to manufacture and market a solar-powered toy car. The car's inventor has offered Simes the choice of either a one-time payment of $1,500,000 today or a series of 5 year-end payments of $385,000. a. If Simes has a cost of capital of 9%, which form of payment should it choose? b. What yearly payment would make the two offers identical in value at a cost of capital of 996? c. What would be your answer to part a of this problem if the yearly payments were made at the beginning of each year? d. The after-tax cash inflows associated with this purchase are projected to amount to $250,000 per year for 15 years. Will this factor change the firm's decision about how to fund the initital investment? a. If Simes has a cost of capital of 9%, the present value of the annuity is $ 1,497,516. (Round to the nearest dollar) Which form of payment should the firm choose? (Select the best answer below) A. Annuity payment B. Lump sum payment b. The yearly payment that would make the two offers identical in value at a cost of capital of 9% is Round to the nearest dollar

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