(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