Present Value of $1

Present value of $1
Present value of an Annuity of $1

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 Project 1? (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) $20,000
B) $25,670
C) $4,860
D) $22,530
E) $2,530