What is the equal annual annuity for Scorch & Burn Fire Extinguishers if their cost of capital is 8% and the initial investment is $75,000 (rounded)?
$$\begin{array} { | c | c | }
\hline \text { Year } & \text { Cash Inflows } \
\hline 1 & \$ 25,000 \
\hline 2 & \$ 25,000 \
\hline 3 & \$ 45,000 \
\hline
\end{array}$$
A)$5,304
B)$6,271
C)$2,058
D)$4,157

Question

What is the equal annual annuity for Scorch & Burn Fire Extinguishers if their cost of capital is 8% and the initial investment is $75,000 (rounded)?
$$\begin{array} { | c | c | } 
\hline \text { Year } & \text { Cash Inflows } \
\hline 1 & \$ 25,000 \
\hline 2 & \$ 25,000 \
\hline 3 & \$ 45,000 \
\hline
\end{array}$$
A)$5,304
B)$6,271
C)$2,058
D)$4,157

Quizplus · Accepted Answer

The Answer of What is the equal annual annuity for Scorch & Burn Fire Extinguishers if their cost of capital is 8% and the initial investment is $75,000 (rounded)?
$$\begin{array} { | c | c | } 
\hline \text { Year } & \text { Cash Inflows } \
\hline 1 & \$ 25,000 \
\hline 2 & \$ 25,000 \
\hline 3 & \$ 45,000 \
\hline
\end{array}$$
A)$5,304
B)$6,271
C)$2,058
D)$4,157

What Is the Equal Annual Annuity for Scorch & Burn