What is the maximum that should be invested in a project at time zero if the inflows are estimated at $50,000 annually for 3 years, and the cost of capital is 19%?

Step-by-step explanation:

Given that inflows are estimated at $50,000 annually for 3 years

Thus we find that total inflows are

I year         50000

II year         50000

III year        50000

                  150000

Maximum investment should be the one which equals present value of inflow

 Interest  19%

YearInflowPre. Value  

I5000042016.80672  

II5000035308.24094  

III5000029670.79071  

Total inflow at present value  106995.8384  

Max Amount to be invested  106995.8  

Answer is 106995.80

  the correct choice is marked

step-by-step explanation:

the first two graphs show multiple turning points. the last graphs matches the description in every detail.