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

Useful life		7	years
Yearly net cash inflow	$	60,000
Salvage value	$	0
Internal rate of return		14	%
Required rate of return		10	%

Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.

The initial cost of the equipment is closest to:

Multiple Choice

• $360,100

• $257,280

• $267,630

• Cannot be determined from the given information.