Gamma Corporation is considering an investment of $514,000 in a land development project. It will...
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Accounting
Gamma Corporation is considering an investment of $514,000 in a land development project. It will yield cash flows of $210,000 for 5 years. The company uses a discount rate of 9%. What is the net present value of the investment?
Resent value of annuity of $1:
8% 9% 10%
1 0.926 0.917 0.909
2 1.783 1.759 1.736
3 2.577 2.531 2.487
4 3.312 3.24 3.17
5 3.993 3.89 3.791
A) $339,240
B) $236,440
C) $210,000
D)$302,900
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