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| Suzie owns a computer reselling business and is expanding it. She is presented with two options. Under Proposal A, the estimated investment for the expansion project is $85,000, and it is expected to produce after-tax cash flows of $25,000 for each of the next 6?years. Proposal B involves an investment of $32,000 and after-tax cash flows of $10,000 for each of the next 6 years. Between which two desired rates of return will Suzie be indifferent to either proposal? A. 10% and 12%. B. 14% and 16%. C. 16% and 18%. D. 18% and 20%. |