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• ABC Corporation is considering an investment proposal that will require an initial outlay of $804,000 and would yield yearl

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Answer #1

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=200,000[1-(1.1)^-9]/0.1

=200,000*5.759

=1151800

NPV=Present value of inflows-Present value of outflows

=1151800-804,000

=$347800

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