A company undertakes a 5-year project that requires annual payments. Payment for the first year is It will then increase by 5% each subsequent year. The interest is fixed at 5% a year. What is the present worth of this cash flow?
A)$9 112
B)$9 328
C)$9 442
D)$9 524
E)$10 226

Question

A company undertakes a 5-year project that requires annual payments. Payment for the first year is  It will then increase by 5% each subsequent year. The interest is fixed at 5% a year. What is the present worth of this cash flow?
A)$9 112 
B)$9 328 
C)$9 442 
D)$9 524 
E)$10 226

Quizplus · Accepted Answer

The Answer of A company undertakes a 5-year project that requires annual payments. Payment for the first year is  It will then increase by 5% each subsequent year. The interest is fixed at 5% a year. What is the present worth of this cash flow?
A)$9 112 
B)$9 328 
C)$9 442 
D)$9 524 
E)$10 226

A Company Undertakes a 5-Year Project That Requires Annual Payments