Odeletta Corporation is considering an investment of $518,000 in a land development project.The investment will yield cash inflows of $220,000 per year for five years.The company uses a discount rate of 9%.What is the net present value of the investment?
Present value of an ordinary annuity of $1:
A) $238,280
B) $337,800
C) $341,880
D) $220,000
Correct Answer:
Verified
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