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Periods 490 6% 896 10% 1296 1496 1 0.962 0.943 0.926 0.909 0.893 0.877 1.886 2 3 1.833 1.783 1.736 1.690 1.647 2.775 2.673 2.577

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Periods 490 6% 896 10% 1296 1496 1 0.962 0.943 0.926 0.909 0.893 0.877 1.886 2 3 1.833 1.783 1.736 1.690 1.647 2.775 2.673 2.577 2.497 2.402 2.322 4 3.630 3.465 3.312 3.170 3.037 2.914 5 4.452 4.212 3.993 3.791 3.605 3.433 6 5.242 4.917 4.623 4.355 4.111 3.989 7 6.002 5.582 5.206 4.868 4.564 4.288 8 6.733 6.210 5.747 5.335 4.968 4.639 9 7.435 6.802 6.247 5.759 5.328 4.946 10 8.111 7.360 6.710 6.145 5.650 5.216 Morgan Clinical Practice is considering an investment in new imaging equipment that will cost $400,000. The equipment is expected to yleld cash inflows of $80,000 per year for a six year period. At the end of the sixth year, the firm expects to recover $150,000 from the sale of the equipment. Morgan set a required rate of return at 10%. What is the net present value of the Investment? (Note: there may be a rounding error depending on the table you use to compute your answer. Choose the answer closest to the one you calculate.) Da ($33.000 Ob. $33,000 Oc. $45.200 Od: $433.000 De. ($177.280)

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