Home Express Moving Company Is Considering Purchasing New Equipment That

Home Express Moving Company is considering purchasing new equipment that costs $728,000. Its management estimates that the equipment will generate cash inflows as follows: $$\begin{array} { | r | c | } \hline \text { Year 1 } & \$ 214,000 \\\hline 2 & 214,000 \\\hline 3 & 264,000 \\\hline 4 & 264,000 \\\hline 5 & 150,000 \\\hline\end{array}$$ Present value of $1:
$\begin{array}{|l|l|l|l|l|l|}\hline & 6 \% & 7 \% & 8 \% & 9 \% & 10 \% \\\hline 1 & 0.943 & 0.935 & 0.926 & 0.917 & 0.909 \\\hline 2 & 0.890 & 0.873 & 0.857 & 0.842 & 0.826 \\\hline 3 & 0.840 & 0.816 & 0.794 & 0.772 & 0.751 \\\hline 4 & 0.792 & 0.763 & 0.739 & 0.708 & 0.683 \\\hline 5 & 0.747 & 0.713 & 0.681 & 0.650 & 0.621 \\\hline\end{array}$ 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