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Door to Door Moving Company is considering purchasing new equipment that costs $726,000. Its management estimates that the equipment will generate cash inflows as follows:

Door to Door Moving Company is considering purchasing new equipment that costs $726,000. Its management estimates that the equipment will generate cash inflows as follows:

Year 1

$216,000

2

216,000

3

266,000

4

266,000

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. $38,448

B. $906,000

C. $798,000

D. $899.440

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