Question
ABC Corporation is considering an investment proposal that will require an initial outlay of $804,000 and...
- ABC Corporation is considering an investment proposal that will require an initial outlay of $804,000 and would yield yearly cash inflows of $200,000 for nine years. The company uses a discount rate of 10%. What is the NPV of the investment?
Present value of an ordinary 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 |
|
6 |
4.623 |
4.486 |
4.355 |
|
7 |
5.206 |
5.033 |
4.868 |
|
8 |
5.747 |
5.535 |
5.335 |
|
9 |
6.247 |
5.995 |
5.759 |
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