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A Company Undertakes a 5-Year Project That Requires Annual Payments

Question 11

Multiple Choice

A company undertakes a 5-year project that requires annual payments. Payment for the first year is A company undertakes a 5-year project that requires annual payments. Payment for the first year is It will then increase by 5% each subsequent year. The interest is fixed at 5% a year. What is the present worth of this cash flow? A) $9 112 B) $9 328 C) $9 442 D) $9 524 E) $10 226 It will then increase by 5% each subsequent year. The interest is fixed at 5% a year. What is the present worth of this cash flow?


A) $9 112
B) $9 328
C) $9 442
D) $9 524
E) $10 226

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