Solved

A Security Company Offers to Provide CCTV Coverage for a Parking

Question 92

Multiple Choice

A security company offers to provide CCTV coverage for a parking garage for ten years for an initial payment of $50,000 and additional payments of $30,000 per year. What is the equivalent annual annuity of this deal, given a cost of capital of 5%?


A) -$21,885
B) -$25,533
C) -$29,180
D) -$36,475

Correct Answer:

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