A security company offers to provide CCTV coverage for a parking garage for ten years for an initial payment of $45,000 and additional payments of $25,000 per year. What is the equivalent annual annuity of this deal, given a cost of capital of 4%? OA -$18,329 OB. -$30,548 OC.-$24,438 OD. -$21,384

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A security company offers to provide CCTV coverage for a parking garage for ten years for an initial payment of $45,000 and additional payments of $25,000 per year.
What is the equivalent annual annuity of this deal, given a cost of capital of 4%?
OA -$18,329
OB. -$30,548
OC.-$24,438
OD. -$21,384
Transcribed Image Text:* A security company offers to provide CCTV coverage for a parking garage for ten years for an initial payment of $45,000 and additional payments of $25,000 per year. What is the equivalent annual annuity of this deal, given a cost of capital of 4%? OA -$18,329 OB. -$30,548 OC.-$24,438 OD. -$21,384
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