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Door to Door Moving Company is considering purchasing new equipment that costs $700,000. Its management estimates that the equipment will generate cash inflows as follows:
Door to Door Moving Company is considering purchasing new equipment that costs $700,000. Its management estimates that the equipment will generate cash inflows as follows: $206,000 Year 1 2 206,000 3 262,000 4 262,000 5 158,000 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 0.650 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 OB. $786,000 OC. $36,668 OD. $875,494 NEED
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