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Investment a Requires a Net Investment of $800 000 Today

Question 57

Multiple Choice

Investment A requires a net investment of $800 000 today.If you require an annuity for the next four years and the required rate of return is 12%,what are the annual cash flows if the net present value (rounded) equals 0?


A) $189 483
B) $263 418
C) $295 733
D) $274 848

Correct Answer:

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