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Business, 20.06.2020 22:57 bri9263

Home Express Moving Company is considering purchasing new equipment that costs $ 740 comma 000. Its management estimates that the equipment will generate cash inflows as follows: Year 1 $206,000
2 206,000
3 252,000
4 252,000
5 170,000
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 0.605 0.62
The company's annual required rate of return is 8%. Using the factors in the table, calculate the present value of the cash inflows.
A. $888, 000
B. $786, 000
C. $36, 312
D. $873, 290 

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