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

Useful life	11 years
Yearly net cash inflow	$40,000
Salvage value	$0
Internal rate of return	13%
Required rate of return	9%

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)

$237,830

$400,100

Cannot be determined from the given information.

$227,480