Welch Corporation is planning an investment with the following characteristics (Ignore income taxes.):

Useful life		8	years
Yearly net cash inflow	$	80,000
Salvage value	$	0
Internal rate of return		13	%
Required rate of return		9	%

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.

The initial cost of the equipment is closest to:

Multiple Choice

• $394,270

• Cannot be determined from the given information.

• $383,920

• $560,100