Zoey Company is considering purchasing new equipment that costs

$738,000.

Its management estimates that the equipment will generate cash inflows as follows:

Year 1	$218,000
2	218,000
3	256,000
4	256,000
5	158,000

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:

	6%	7%	8%	9%	10%
1	0.943	0.935	0.926	0.917	0.909
2	0.890	0.873	0.857	0.842	0.826
3	0.840	0.816	0.794	0.772	0.751
4	0.792	0.763	0.735	0.708	0.683
5	0.747	0.713	0.681	0.650	0.621

Question content area bottom

Part 1

A.

$806,529

B.

$843,452

C.

$822,342

D. $810,662