Question: PEI Inc. is analyzing a project that has an initial cash outflow today of $ 3 6 0 , 0 0 0 and future cash

PEI Inc. is analyzing a project that has an initial cash outflow today of $360,000 and future cash flows as follows: Year 1: $165,000; Year 2: $150,000; Year 3: $115,000; and Year 4: $95,000. These cash flows occur evenly throughout the year and should be discounted to account for this. The discount rate for this project is 12%. Which of the following is the correct present value factor to use for Year 2 cash flows?
A.0.7533
B.0.7972
C.0.8437
D.1.1853

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