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Caldwell Corporation is considering an investment proposal that will require an initial outlay of $804,000 and would yield yearly cash inflows of $202,000 for nine
Caldwell Corporation is considering an investment proposal that will require an initial outlay of $804,000 and would yield yearly cash inflows of $202,000 for nine years. The company uses a discount rate of 10%. What is the NPV of the investment? Present value of an ordinary 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 A. $250,833 B. $402,000 C. $353,500 OD. $359,318
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