Gamma Corporation 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:
A) $350,000
B) $400,000
C) $351,800
D) $250,000
Correct Answer:
Verified
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