Lloyd's Moving Company Is Considering Purchasing New Equipment That Costs

Lloyd's Moving Company is considering purchasing new equipment that costs $728,000.Its management estimates that the equipment will generate cash flows as follows: $$\begin{array} { | r | r | } \hline \text { Year } 1 & \$ 214,000 \\\hline 2 & 214,000 \\\hline 3 & 264,000 \\\hline 4 & 264,000 \\\hline 5 & 150,000 \\\hline\end{array}$$ Present value of $1:
$$\begin{array} { | l | r | r | r | r | r | } \hline & { 6 \% } & { 7 \% } & { 8 \% } & { 9 \% } & 10 \% \\\hline 1 & 0.943 & 0.935 & 0.926 & 0.917 & 0.909 \\\hline 2 & 0.890 & 0.873 & 0.857 & 0.842 & 0.826 \\\hline 3 & 0.840 & 0.816 & 0.794 & 0.772 & 0.751 \\\hline 4 & 0.792 & 0.763 & 0.735 & 0.708 & 0.683 \\\hline 5 & 0.747 & 0.713 & 0.681 & 0.650 & 0.621 \\\hline\end{array}$$ The company's annual required rate of return is 9%.Using the factors in the table,calculate the present value of the cash flows.(Round all calculations to the nearest whole dollar. )

A) $892,000
B) $864,646
C) $853,320
D) $894,000