Zoey Company is considering purchasing new equipment that costs $718,000. Its management estimates that the equipment will generate cash inflows as follows: Year 1 2 3 $212.000 212.000 264,000 264,000 152,000 4 5 The company's required rate of return is 10%. Using the factors in the table below, calculate the present value of the cash inflows. (Round all calculations to the nearest whole dollar.) Present value of $1 O A. $800,057 B. $784,671 O C. $840,788 OD. $788,693 Gloria Ammon has just won the state lottery and has the following three payout options for after - tax prize money 1. $60,000 per year at the end of each of the next six years 2. $320,000 (lump sum) now 3. $518 000 (lump sum) six years from now The annual discount rate is 9% Compute the present value of the third option. (Round to nearest whole dollar.) Present value of $1 8% 1 0.926 2 0.857 3 0.794 0.735 0.681 6 0.630 0.583 V AWN 9% 0.917 0.842 0.772 0.708 0.650 0.596 0.547 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 5 7 O A. $92,000 OB. $308,728 O C. $95,360 OD. $260,000 Time F