Figure 14-6.Present Value of $1

Figure 14-6.Present value of $1
Present value of an Annuity of $1

-Refer to Figure 14-6. Morgan Clinical Practice is considering an investment in new imaging equipment that will cost $400,000. The equipment is expected to yield cash inflows of $80,000 per year for a six year period. Morgan set a required rate of return at 10%. What is the net present value of the investment? (Note: there may be a rounding error depending on the table you use to compute your answer. Choose the answer closest to the one you calculate.)

A) $51,600
B) ($51,600)
C) $348,400
D) ($348,600)
E) $451,600