Nikes is acquiring an order entry system at a cost of $500,000. The system will pro- duce annual cash flows of $87,000 over its seven-year useful life. Nike has the following data, bond yield of 8%, expected annual return on its stock of 12% and a minimum cost of capital of 10%. What is the present value of the cash flow system? A. $500,000 B. $423,552 C. $397,046 D. $452,954