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-timepayment of $1,800,000 today or a series of 7 year-end payments of $350,000.a. If Simes has a cost of capital of 8%, 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 8%?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 $227,500 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 8%, the present value of the annuity is $. (Round to the nearest dollar.)Which form of payment should the firm choose? (Select the best answer below.)O A. Lump sum paymentB. Annuity paymentb. The yearly payment that would make the two offers identical in value at a cost of capital of 8% is $(Round to the nearest dollar.)c. If the yearly payments were made at the beginning of each year, the present value of the annuity is $(Round to the nearest dollar.)Which form of payment should the firm choose if the annuity payments are paid at the beginning of each year? (Select the best answer below.)O A. Annuity paymentO B. Lump sum paymentd The after-tax cash inflows associated with this purchase are proiected to amount to $227 500 ner vear for 15 vears. Will this factor change the firm's decision about how to fund the inititalClick to select your answer(s). 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-timepayment of $1,800,000 today or a series of 7 year-end payments of $350,000.a. If Simes has a cost of capital of 8%, 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 8%?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 $227,500 per year for 15 years. Will this factor change the firm's decision about how to fund the initital investment?O B. Annuity paymentb. The yearly payment that would make the two offers identical in value at a cost of capital of 8% is $(Round to the nearest dollar.)c. If the yearly payments were made at the beginning of each year, the present value of the annuity is $(Round to the nearest dollar.)Which form of payment should the firm choose if the annuity payments are paid at the beginning of each year? (Select the best answer below.)A. Annuity paymentO B. Lump sum paymentd. The after-tax cash inflows associated with this purchase are projected to amount to $227,500 per year for 15 years. Will this factor change the firm's decision about how to fund the inititalinvestment? (Select the best answer below.)O A. No, the cash flows from the project will not influence the decision on how to fund the project. The investment and financing decisionsO B. Yes, the cash flows from the project will influence the decision on how to fund the project. The investment and financing decisions areScreenshot savedThe screenshot was added to yourOneDrive.Click to select VOur answerls)

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