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A Project Is Expected to Provide a Cash Flow of $15,600

Question 86

Multiple Choice

A project is expected to provide a cash flow of $15,600 next year with annual increases of 4.5 percent for a total of 12 cash flows.After that,the project will be worthless.What is the present value of this project at a discount rate of 13 percent,compounded annually?


A) $91,987.56
B) $111,723.56
C) $63,206.07
D) $103,008.67
E) $89,407.11

Correct Answer:

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