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Zoey Company is considering purchasing new equipment that costs $714,000. Its management estimates that the equipment will generate cash inflows as follows: Year 1 $200,000
Zoey Company is considering purchasing new equipment that costs $714,000. Its management estimates that the equipment will generate cash inflows as follows: Year 1 $200,000 200,000 254,000 254,000 158,000 Present value of $1: 6% 9% 0.943 0.890 0.840 0.792 0.747 7% 0.935 0.873 0.816 0.763 0.713 8% 0.926 0.857 0.794 0.735 0.681 0.917 0.842 0.772 0.708 0.650 10% 0.909 0.826 0.751 0.683 0.621 The company's required rate of return is 10%. Using the factors in the table below. calculate the present ne factors in the table below, calculate the present value of the cash inflows. (Round all calculations to the nearest whole dollar.) O A. $809,354 OB. $784,299 O C. $780,300 OD. $795,599
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