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AreaPresent value of $ 1 Periods 4 % 6 % 8 % 1 0 % 1 2 % 1 4 % 1 0 . 9

AreaPresent value of $1
Periods 4%6%8%10%12%14%
10.961540.943400.925930.909090.892860.87719
20.924560.890000.857340.826450.797190.76947
30.889000.839620.793830.751310.711780.67497
40.854800.792090.735030.683010.635520.59208
50.821930.747260.680580.620920.567430.51937
60.790310.704960.630170.564470.506630.45559
70.759920.665060.583490.513160.452350.39964
80.730690.627410.540270.466510.403880.35056
90.702590.591900.500250.424100.360610.30751
100.675560.558390.463190.385540.321970.26974
Present value of an annuity of $1
Periods 4%6%8%10%12%14%
10.961540.943400.925930.909090.892860.87719
21.886091.833391.783261.735541.690051.64666
32.775092.673012.577102.486852.401832.32163
43.629903.465113.312133.169873.037352.91371
54.451824.212363.992713.790793.604783.43308
65.242144.917324.622884.355264.111413.88867
76.002055.582385.206374.868424.563764.28830
86.732746.209795.746645.334934.967644.63886
97.435336.801696.246895.759025.328254.94637
108.110907.360096.710086.144575.650225.21612
A firm is considering a project with an initial investment of $700,000 and annual cash inflows of $100,000. The project would have an eight-year life, and the company uses a discount rate of 6%. What is the NPV of the project? (Use the discount tables provided and round the answer to the nearest dollar if needed.)
a. $56,425
b. $80,545
c. $90,110
d. $79,021

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