Gamma Corp.is considering an investment opportunity with the following expected net cash inflows: Year 1,$250,000; Year 2,$350,000; Year 3,$395,000.Residual value of the investment would be $50,000.The company uses a discount rate of 12%,and the initial investment is $400,000.Calculate the NPV of the investment.
Present value of $1:

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The Answer of Gamma Corp.is considering an investment opportunity with the following expected net cash inflows: Year 1,$250,000; Year 2,$350,000; Year 3,$395,000.Residual value of the investment would be $50,000.The company uses a discount rate of 12%,and the initial investment is $400,000.Calculate the NPV of the investment.
Present value of $1: