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(Ignore Income Taxes in This Problem

Question 1

Multiple Choice

(Ignore income taxes in this problem. ) Judy Soope just received an annual raise of $500 starting with the current year.If Judy anticipates working for eight more years (including the current year) and the cash flows are discounted at 8%,what cash award today would be equivalent to the pay raise?


A) $4,000
B) $2,874
C) $2,160
D) $2,603

Correct Answer:

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