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please help solve so i may know how to do on test
Ratino, is evaluating an investment proposal that will require an initial outlay of $804,000 and would yield yearly cash infl
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Answer #1

Answer - (c) $347800

Explanation

Present value annuity factor at 10% for 9 years is 5.759 so in this case

Present value of cash inflow of $200000 for 9 years will be = $200000*5.759 = $1151800

Initial outlay is $804000

So NPV = $1151800 - $804000 = $347800

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