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Odeletta Corporation is considering an investment of $516,000 in a land development project. The investment will yield cash inflows of $220,000 per year for five
Odeletta Corporation is considering an investment of $516,000 in a land development project. The investment will yield cash inflows of $220,000 per year for five years. The company uses a discount rate of 9%. What is the net present value of the investment? Present value of an ordinary annuity of $1: 12345 8% 9% 10% 0.926 0.917 0.909 1.783 1.759 1.736 2.577 2.531 2.487 3.312 3.24 3.17 3.993 3.89 3.791 A. $339,800 B. $340,560 C. $237,360 D. $220,000
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