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