The Gideon Corp. is considering making an investment in a project of $1,000,000. It expects to receive five payments of $300,000 each. Its discount rate is 8%. A table shows that the present value of an annuity of five payments of $1 each, at 8%, has a value of 4.1002. The net present value of this investment opportunity is approximately

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The net present value (NPV) is calculated by subtracting the initial investment from the present value of the cash inflows. The present value of the cash inflows is $300,000 * 4.1002 = $1,230,060. Subtracting the initial investment of $1,000,000 from this gives an NPV of approximately $230,060.