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 2?

A) $5,670
B) $20,000
C) $2,530
D) $24,070
E) $4,070