Ajax Rentals has an opportunity to purchase a truck for $130,000 with a useful life of 5 years and a $20,000 salvage value. $4,000 of spare parts is needed when the truck is acquired and this cost will be recovered at the end of the truck's useful life. After two years a $25,000 major overhaul is needed. They can generate $75,000 a year in delivery revenues, and operating expenses will be a $35,000 cash outflow per year. Cost of Capital is 8%.

What is the Present Value of Cash Outflows? HINT - ALL cash OUTFLOWS - don't forget about the initial investment as well as the other outflows)?

a.$176,683

b.$290,178

c.$295,178

d.$509,992