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Evaluate the Value of a from the Cash Flows Shown

Question 1

Multiple Choice

Evaluate the value of A from the cash flows shown in table below using an interest rate of 7% compounded annually.
 Year 012345 Cash Flow $15,0005A4 A3 A 2A  5A \begin{array} { | l | l | l | l | l | l | l | } \hline \text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \\\hline \text { Cash Flow } & - \$ 15,000 & 5 A & 4 \mathrm {~A} & 3 \mathrm {~A} & \text { 2A } & \text { 5A } \\\hline\end{array}


A) $734.63
B) $1,049.97
C) $955.11
D) $874.80

Correct Answer:

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