Calculate the Present Value of a Growing Annuity Given the Following

question 254

Multiple Choice

Calculate the present value of a growing annuity given the following information: current cash flows: $100,000; cash flow growth rate = 2%; timeframe = 25 years; required rate of return = 5%.

• A) $1,708,415
• B) $1,718,415
• C) $1,728,415
• D) $1,738,415
• E) $1,748,415

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Definitions:

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Adverse effects or disadvantages that persist over an extended period as a result of specific actions or conditions.

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