Calculate the present value pf the cash flows

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Reference no: EM132203247

Moon moving company is considering purchasing new equipment that cost $728,000. Its management estimates that the equipment will generate cash flows as follows:

Year 1  $214,000

Year 2  $214,000

Year 3  $264,000

Year 4  $264,000

Year 5  $150,000

Present value of $1

         6%      7%      8%      9%      10%

1    0.943  0.935  0.926  0.917  0.909

2    0.890  0.873  0.857  0.842  0.826

3    0.840  0.816  0.794  0.772  0.751

4    0.792  0.763  0.735  0.708  0.683

5    0.747  0.713  0.681  0.650  0.621

The Company annual required rate of return is 9%. Using the factors in the table, calculate the present value pf the cash flows ( Round all calculations to the nearest whole dollar)

Reference no: EM132203247

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