Calculate the Present Value of a Growing Annuity Given the Following

question 146

Multiple Choice

Calculate the present value of a growing annuity given the following information: annual cash flows = $20,000; cash flow growth rate = 12%; required rate of return = 3%; timeframe = 35 years.

• A) $218,379
• B) $216,379
• C) $214,379
• D) $212,379
• E) $210,379

---

Definitions:

Reasonable Solution

An achievable and sensible answer to a problem that takes into account all relevant factors.

Online Attacks

Malicious actions carried out through the internet aimed at damaging, defrauding, or stealing from individuals or organizations.

Credibility

The quality of being trusted and believed in, often based on a reputation for reliability and integrity.

Engage Stakeholder

The process of involving individuals, groups, or organizations that may be affected by a decision or have an interest in the outcome of a project, ensuring their perspectives are considered.