Fayette Corporation is considering investing in specialized equipment costing $635,000. The equipment has a useful life of 5 years and a residual value of $59,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are: Year 1 Year 2 Year 3 Year 4 Year 5 $120,000 $200,000 $164,000 $74,000 $85,000 $643,000 Fayette Corporation's required rate of return is 12%. The net present value of the investment is closest to: Present Value of $1 Periods 2 3 10% 0.909 0.826 0.751 0.683 12% 0.893 0.797 0.712 0.636 14% 0.877 0.769 0.675 0.592 16% 0.862 0.743 0.641 0.552 4 5 0.621 0.567 0.519 0.476 Present Value of Annuity of $1 Periods 10% 1 0.909 2 1.736 3 2.487 4 3.170 5 3.791 12% 0.893 1.690 2.402 3.037 3.605 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 A. $122,960 negative. B. $8,000 positive. C. $122,960 positive. D. $4,536 negative