An engineering firm is paying a series of 10 annual cash flows with the 1st cash flow at the end of year 1 equal to $20,000.00 and each successive cash flow increasing by $1000.00. If the interest rate is 5%, what is the worth of all the payments at the end of year 10? a) $303,118.00 b) $251,560.00 c) $51,558.00 d) $343,202.00
An engineering firm is paying a series of 10 annual cash flows with the 1st cash flow at the end of year 1 equal to $20,000.00 and each successive cash flow increasing by $1000.00. If the interest rate is 5%, what is the worth of all the payments at the end of year 10? a) $303,118.00 b) $251,560.00 c) $51,558.00 d) $343,202.00
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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15- An engineering firm is paying a series of 10 annual cash flows with the 1st cash flow at the end of year 1 equal to $20,000.00 and each successive cash flow increasing by $1000.00. If the interest rate is 5%, what is the worth of all the payments at the end of year 10?
-
a) $303,118.00
-
b) $251,560.00
-
c) $51,558.00
-
d) $343,202.00
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