Answer:
D. $526,836
Explanation:
We need to solve for the cuota of an annuity of 4 years at 12% discount rate, which present value is 1,600,000
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV $1,600,000
time 4
rate 0.12
[tex]1600000 \div \frac{1-(1+0.12)^{-4} }{0.12} = C\\[/tex]
C $ 526,775.10
The cashflow per year should be 526,775 to equal the net investment and give a NPV of zero
Based on the possible option we pick the nearest value. Which is 526,836
