Present value of $1

Periods	4%		6%		8%		10%		12%		14%
1	0.962		0.943		0.926		0.909		0.893		0.877
2	0.925		0.890		0.857		0.826		0.797		0.769
3	0.889		0.840		0.794		0.751		0.712		0.675
4	0.855		0.792		0.735		0.683		0.636		0.592
5	0.822		0.747		0.681		0.621		0.567		0.519
6	0.790		0.705		0.630		0.564		0.507		0.456
7	0.760		0.665		0.583		0.513		0.452		0.400
8	0.731		0.627		0.540		0.467		0.404		0.351
9	0.703		0.592		0.500		0.424		0.361		0.308
10	0.676		0.558		0.463		0.386		0.322		0.270

Present value of an Annuity of $1

Periods	4%		6%		8%		10%		12%		14%
1	0.962		0.943		0.926		0.909		0.893		0.877
2	1.886		1.833		1.783		1.736		1.690		1.647
3	2.775		2.673		2.577		2.487		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		3.889
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 yield 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.)

a.$433,000

b.($33,000)

c.$45,200

d.$33,000

e.($177,280)