A company wishes to buy new equipment for $120,000. The equipment is expected to generate an additional $52,500 in cash inflows for four years. All cash flows occur at year-end. A bank will make an $120,000 loan to the company at a 10% interest rate so that the company can purchase the equipment. Use the table below to determine the present value of the future cash flows and the net present value of the investment.

Year	Present value of 1 at 10%
0	1.0000
1	0.9091
2	0.8264
3	0.7513
4	0.6830

$210,000 and $67,500 respectively

$166,414 and $46,415 respectively

$218,915 and $98,915 respectively

$218,915 and $179,471 respectively

$166,415 and $92,829 respectively