Multiple Choice
Your firm is considering an investment that will cost $920,000 today.The investment will produce cash flows of $450,000 in year 1,$270,000 in years 2 through 4,and $200,000 in year 5.The discount rate that your firm uses for projects of this type is 11.25%.What is the investment's equivalent annual annuity?
A) $52,377
B) $42,923
C) $41,387
D) $40,399
Correct Answer:
Verified
Correct Answer:
Verified
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