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(Ignore income taxes in this problem.) Overland Corporation has gathered the following data on a proposed investment project: Investment required in equipment $ 500,000 Annual

(Ignore income taxes in this problem.) Overland Corporation has gathered the following data on a proposed investment project:

Investment required in equipment $ 500,000
Annual cash inflows $ 82,000
Salvage value of equipment $ 0
Life of the investment 16 years
Required rate of return 9 %

The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.

Click here to view Exhibit 8B-2 to determine the appropriate discount factor(s) using tables.

The net present value of this investment is:

$181,666

$500,000

$78,750

$82,000

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