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

Useful life		7	years
Yearly net cash inflow	$	70,000
Salvage value	$	0
Internal rate of return		12	%
Required rate of return		8	%

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

• $329,830

• $319,480

• $420,100

• Cannot be determined from the given information.