Northern Construction and Engineering plans on opening an office in Duluth. Over the next 25 years, the office is expected to have a positive cash flow of 250,000 per year. What is the equivalent present worth if the first 12 years has an annual interest rate of 12% and the next 13 years has 15% compounded monthly. A. 1.89 M B. 1.77 M C. 1.96 M D. 1.65 M
Northern Construction and Engineering plans on opening an office in Duluth. Over the next 25 years, the office is expected to have a positive cash flow of 250,000 per year. What is the equivalent present worth if the first 12 years has an annual interest rate of 12% and the next 13 years has 15% compounded monthly. A. 1.89 M B. 1.77 M C. 1.96 M D. 1.65 M
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Northern Construction and Engineering plans on opening an office in Duluth. Over the next 25 years, the office is expected to have a positive cash flow of 250,000 per year. What is the equivalent present worth if the first 12 years has an annual interest rate of 12% and the next 13 years has 15% compounded monthly.
A. 1.89 M
B. 1.77 M
C. 1.96 M
D. 1.65 M
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