Gamma Corporation is considering an investment of $500,000 in a land development project.It will yield cash flows of $200,000 for 5 years.The company uses a discount rate of 9%.What is the net present value of the investment? Present value of annuity of $1:
A) $230,000
B) $278,000
C) $330,000
D) $200,000
Correct Answer:
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