Oriental Corporation has gathered the following data on a proposed investment project:
Use Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided.
The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.
The net present value of this investment would be:
A) $(14,350)
B) $107,250
C) $77,200
D) $200,000
Correct Answer:
Verified
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