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Baber Corporation is planning an investment with the following characteristics: (Ignore income taxes in this problem.) Useful life 9 years Yearly net cash inflow $60,000

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

Useful life 9 years
Yearly net cash inflow $60,000
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)

$319,680

Cannot be determined from the given information.

$480,100

$330,030

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