Calculate the Present Value of a Growing Annuity Given the Following

question 229

Multiple Choice

Calculate the present value of a growing annuity given the following information: current cash flows: $220,000; cash flow growth rate = 5%; timeframe = 55 years; required rate of return = 12%.

• A) $3,252,545
• B) $3,152,545
• C) $3,052,545
• D) $2,952,545
• E) $2,852,545

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Definitions:

Parietal Bone

One of the two bones forming the sides and roof of the cranium.

Vertebral Column

The flexible and strong sequence of bones extending from the skull to the small of the back, protecting the spinal cord and enabling upright posture.

Axial

Relating to, or situated around, an axis; often describes body parts or anatomical structures aligned with the central axis of the body.

Occipital Bone

The bone that forms the back and base of the skull, and through which the spinal cord passes.