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Zoey Company is considering purchasing new equipment that costs $740,000. Its management estimates that the equipment will generate cash inflows as follows: Year 1 $214,000
Zoey Company is considering purchasing new equipment that costs $740,000. Its management estimates that the equipment will generate cash inflows as follows: Year 1 $214,000 2 214,000 3 264,000 4 264,000 5 168,000 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% OA. $812,859 OB. $824,571 OC. $808,714 OD. $854,194
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