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Door to Door Moving Company is considering purchasing new equipment that costs $720, 000. Its management estimates that the equipment will generate cash flows as

Door to Door Moving Company is considering purchasing new equipment that costs $720, 000. Its management estimates that the equipment will generate cash flows as follows:

Year 1

$ 204, 000

2

204, 000

3

262, 000

4

262, 000

5

160, 000

Present value of $1:

6%

7%

8%

9%

10%

1

0.943

0.935

0.926

0.917

0.909

2

0.890

0.873

0.857

0.842

0.826

3

0.840

0.816

0.794

0.772

0.751

4

0.792

0.763

0.735

0.708

0.683

5

0.747

0.713

0.681

0.605

0.621

The company's annual required rate of return is 8%. Using the factors in the table, calculate the present value of the cash inflows. (Round all calculations to the nearest whole dollar.)

A. $888, 000

B. $786, 000

C. $36, 312

D. $873, 290

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