Moreno Corporation is considering investing in specialized equipment costing $525,000. The equipment has a useful life of five years and a residual value of $55,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are

Year 1	$245,000
Year 2	$190,000
Year 3	$152,000
Year 4	$112,000
Year 5	$95,000
	$794,000

Moreno Corporation's required rate of return is 14%.

The net present value of the Moreno Corporation's investment is closest to

Select one:

a. $269,000 positive

b. $82,729 positive

c. $54,184 positive

d. $25,639 positive

explain the answer

2 Which term below is best described as the "rate of return that makes the NPV of a capital project equal to zero"?

Select one:

a. discount rate

b. accounting rate of return

c. net present value

d. internal rate of return