Question
Gamma Corporation is considering an investment of $516,000 in a land development project. The investment will yield cash inflows of $200,000 per year for five
Gamma Corporation is considering an investment of $516,000 in a land development project. The investment will yield cash inflows of $200,000 per year for five years. The company uses a discount rate of 9%. What is the net present value of the investment?
a). $237,360
b). $340,560
c). $200,000
d). $262,000
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
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