Initial Investment is $616,000. The equipment has a useful life of 5 years and a residual value of $52,000. Depreciation is calculated using the straight line method.

Data Table Year 1 $110,000 $140,000 $161,000 $56,000 Year 2 Year 3 Present Value of $1 Year 4 12 % Periods 10% 14% 16% Year 5 $80.000 $547,000 0.862 0.893 0.877 1 0.909 2 0.826 0.797 0.769 0.743 0.675 0.751 0.712 0.641 Somerville Corporation's required rate of return is 12%. 0.636 0.592 4 0.683 0.552 The net present value the investment is closest to: 0.621 0.567 0.519 0.476 5 (Click the icon to view the present value of $1 table.) E(Click the icon to view the present value of annuity of $1 table.) Print Done O A. $181,098 negative. O B. $39,123 negative. O C. $69,000 positive. O D. $181,098 positive. X Data Table Present Value of Annuity of $1 Periods 10% 12% 14% 16% 0.909 0.893 0.877 0.862 1 2 1.736 1.690 1.647 1.605 2.487 2.402 2.322 2.246 4 3.170 3.037 2.914 2.798 3.791 3.605 3.433 3.274 Print Done