Boomerang Bungee Corp.is considering the following project.Determine the equal annual annuity for the project if the cost of capital is 14%.
Initial Investment: $75,000
$$\begin{array} { | c | c | }
\hline \text { Year } & \text { Cash Inflows } \
\hline 1 & \$ 30,000 \
\hline 2 & \$ 35,000 \
\hline 3 & \$ 40,000 \
\hline
\end{array}$$
Year
A)$5,527.89
B)$4,355.25
C)$7,768.67
D)$2,259.62

Question

Boomerang Bungee Corp.is considering the following project.Determine the equal annual annuity for the project if the cost of capital is 14%.
Initial Investment: $75,000
$$\begin{array} { | c | c | } 
\hline \text { Year } & \text { Cash Inflows } \
\hline 1 & \$ 30,000 \
\hline 2 & \$ 35,000 \
\hline 3 & \$ 40,000 \
\hline
\end{array}$$
Year
A)$5,527.89
B)$4,355.25
C)$7,768.67
D)$2,259.62

Quizplus · Accepted Answer

The Answer of Boomerang Bungee Corp.is considering the following project.Determine the equal annual annuity for the project if the cost of capital is 14%.
Initial Investment: $75,000
$$\begin{array} { | c | c | } 
\hline \text { Year } & \text { Cash Inflows } \
\hline 1 & \$ 30,000 \
\hline 2 & \$ 35,000 \
\hline 3 & \$ 40,000 \
\hline
\end{array}$$
Year
A)$5,527.89
B)$4,355.25
C)$7,768.67
D)$2,259.62

Boomerang Bungee Corp Year A)$5,527

Boomerang Bungee Corp Year
A)$5,527