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:
Present value of $1:
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
Correct Answer:
Verified
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