Fayette Corporation is considering investing in specialized equipment costing$$ $$690,000.$ The equipment has a useful life of $5$ years and a residual value of$$ $$56,000.$ Depreciation is calculated using the straightminusline method. The expected net cash inflows from the investment$$ are:

Year $1$

$$$$180,000$

Year $2$

$$$$180,000$

Year $3$

$$$$152,000$

Year $4$

$$$$55,000$

Year $5$

$$$$93,000$

$$$$660,000$

Fayette$$ Corporation's required rate of return is$12\%.$ The net present value of the investment is closest$$ to:

Present Value of$$ $$1$

Periods

$10\%$

$12\%$

$14\%$

$16\%$

$1$

$0\mathrm{.}909$

$0\mathrm{.}893$

$0\mathrm{.}877$

$0\mathrm{.}862$

$2$

$0\mathrm{.}826$

$0\mathrm{.}797$

$0\mathrm{.}769$

$0\mathrm{.}743$

$3$

$0\mathrm{.}751$

$0\mathrm{.}712$

$0\mathrm{.}675$

$0\mathrm{.}641$

$4$

$0\mathrm{.}683$

$0\mathrm{.}636$

$0\mathrm{.}592$

$0\mathrm{.}552$

$5$

$0\mathrm{.}621$

$0\mathrm{.}567$

$0\mathrm{.}519$

$0\mathrm{.}476$

Present Value of Annuity of$$ $$1$

Periods

$10\%$

$12\%$

$14\%$

$16\%$

$1$

$0\mathrm{.}909$

$0\mathrm{.}893$

$0\mathrm{.}877$

$0\mathrm{.}862$

$2$

$1\mathrm{.}736$

$1\mathrm{.}690$

$1\mathrm{.}647$

$1\mathrm{.}605$

$3$

$2\mathrm{.}487$

$2\mathrm{.}402$

$2\mathrm{.}322$

$2\mathrm{.}246$

$4$

$3\mathrm{.}170$

$3\mathrm{.}037$

$2\mathrm{.}914$

$2\mathrm{.}798$

$5$

$3\mathrm{.}791$

$3\mathrm{.}605$

$3\mathrm{.}433$

$3\mathrm{.}274$