Exhibit 8-3
Yale Inc $\text {Factors: Present Value of \$1}$

Exhibit 8-3
Yale Inc.has two independent investment opportunities,each requiring an initial investment of $260,000.The company's required rate of return is 10 percent.The cash inflows for each investment are provided below.
$$\begin{array} { c c c } & \text { Investment A } & \text { Investment B } \\ \text { Year 1 } & \$ 140,000 & \$ 20,000 \\\text { Year 2 } & 100,000 & 40,000 \\\text { Year 3 } & 60,000 & 60,000 \\\text { Year 4 } & 40,000 & 8 0 , 0 0 0 \\\text { Year 5 } & 20,000 & 160,000 \\\text { Total inflows } & \$ 3 6 0 , 0 0 0 & \$ 3 6 0 , 0 0 0 \end{array}$$ $\text {Factors: Present Value of \$1}$ $\quad$$\text {Factors: Present Value of an Annuity}$
$\quad$$\quad$$(r=10 \%)$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$(r=10 \%)$
$\begin{array}{llll}\text { Year 0 } & 1.0000 & & \\\text { Year 1 } & 0.9091 &\quad\quad\quad\quad\quad\quad \text { Year } 1 & 0.9091 \\\text { Year 2 } & 0.8264 & \quad\quad\quad\quad\quad\quad\text { Year 2 } & 1.7355 \\\text { Year 3 } & 0.7513 & \quad\quad\quad\quad\quad\quad\text { Year 3 } & 2.4869 \\\text { Year 4 } & 0.6830 &\quad\quad\quad\quad\quad\quad \text { Year 4 } & 3.1699 \\\text { Year 5 } & 0.6200 &\quad\quad\quad\quad\quad\quad \text { Year } 5 & 37008\end{array}$
-Refer to Exhibit 8-3.What is the net present value of Investment B (rounded to the nearest dollar) ?

A) ($9,700)
B) $250,300
C) $100,000
D) ($10,000)
E) None of the answer choices is correct.