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

Investment required in equipment	$	450,000
Annual cash inflows	$	90,000
Salvage value of equipment	$	0
Life of the investment		10	years
Required rate of return		7	%

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

The net present value of this investment is:

$450,000

$182,160

$90,000

$86,750