Gamma Company is considering an investment opportunity with the expected net cash inflows of $300,000 for four years. Residual value of the investment would be $70,000. The company uses a discount rate of 14% and the initial investment is $290,000. Calculate the NPV of the investment.
Present value of annuity of $1: Present value of $1:

Question

Gamma Company is considering an investment opportunity with the expected net cash inflows of $300,000 for four years. Residual value of the investment would be $70,000. The company uses a discount rate of 14% and the initial investment is $290,000. Calculate the NPV of the investment.
Present value of annuity of $1:  Present value of $1:

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The Answer of Gamma Company is considering an investment opportunity with the expected net cash inflows of $300,000 for four years. Residual value of the investment would be $70,000. The company uses a discount rate of 14% and the initial investment is $290,000. Calculate the NPV of the investment.
Present value of annuity of $1:  Present value of $1:

Gamma Company Is Considering an Investment Opportunity with the Expected