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Home Express Moving Company is considering purchasing new equpment that costs $725,000. Its management estimates that the equipment will generate cash inflows as follows: $220,000

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Home Express Moving Company is considering purchasing new equpment that costs $725,000. Its management estimates that the equipment will generate cash inflows as follows: $220,000 220,000 264.000 264,000 168,000 Year 1 2 3 4 6 Present value of $1 6% 1 0.943 2 0.890 3 0.840 7% 0.935 0.873 0.816 8% 0.926 0.857 0.794 9% 0.917 0.842 0.772 10% 0.900 0.826 0.751 A $886,000 OB. 5918,000 OG 1916.000 OD. $850,976 Home Express Moving Company in considering purchasing now equipment that conts $726,000. It management estimated that the equipment will generato cash inflows as follows: Year 1 $220,000 220,000 264,000 264,000 168,000 2 3 4 5 Present value of $1: 6% 7% 8% 9% 10% 1 0.943 0.935 0926 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 0.689 0.650 0.621 The company's annual required rate of retum is 9%. Using the factors in the table, calculate the present value of the cash flows. (Round all calculations to the nearest whole dollar) OA 58 200 B. 1918,000 OC 3915,000 D. 5850 976

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