Question
4) Gamma Company is considering an investment proposal that would require an initial outlay of $800,000, and would yield yearly cash flows of $200,000 for
4) Gamma Company is considering an investment proposal that would require an initial outlay of $800,000, and would yield yearly cash flows of $200,000 for 9 years. The company uses a discount rate of 10%. What is the NPV of the investment?
Present value of annuity of $1:
|
| 8% | 9% | 10% |
| 1 | 0.926 | 0.917 | 0.909 |
| 2 | 1.783 | 1.759 | 1.736 |
| 3 | 2.577 | 2.531 | 2.487 |
| 4 | 3.312 | 3.24 | 3.17 |
| 5 | 3.993 | 3.89 | 3.791 |
| 6 | 4.623 | 4.486 | 4.355 |
| 7 | 5.206 | 5.033 | 4.868 |
| 8 | 5.747 | 5.535 | 5.335 |
| 9 | 6.247 | 5.995 | 5.759 |
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Financial Accounting An IFRS Perspective In Romania
Authors: Adriana Dutescu
1st Edition
3030294870, 978-3030294878
