Baber Corporation is planning an investment with the following characteristics: (Ignore income taxes in this problem.)

Useful life	10 years
Yearly net cash inflow	$90,000
Salvage value	$0
Internal rate of return	12%
Required rate of return	8%

Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables.

The initial cost of the equipment is closest to: (Round discount factor(s) to 3 decimal places)

a. $810100

b. $508500

c. $518850

d. cannot be determined from the given information.

PLEASE SHOW ALL WORK